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Mining Projects Group identifies thick nickel sulphide channel at Roe Hills

Last updated: 13:04 29 Jan 2015 AEDT, First published: 12:04 29 Jan 2015 AEDT

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Mining Projects Group (ASX:MPJ) has identified a new thick nickel sulphide fertile lava channel at the Roe 1 prospect within its wholly-owned Roe Hills Project in Western Australia.

The nickel intersections and the geology have a very strong correlation to the discovery history of known deposits such as Cosmos, Prospero, Sinclair, Cerberus, Silver Swan and Camelwood Nickel deposits.

Diamond drilling assays had intersected elevated nickel, copper and PGR geochemistry and confirmed the new major lava channel.

This also increases the prospectivity of the entire 40 kilometre strike containing a new major discovery.

The identification of multiple fertile lava channels at both ends of the strike increases the scope of the system while still conforming to the company’s geological “Cabbage Leaf” model (Kambalda style komatiite flows).

Assays show the ultramafic rock in the lava channel are comprised of a lizardite serpentinite that is very similar to the Cosmos ultramafic geology which is a very encouraging sign that the system is highly prospective.

Two diamond holes have been completed to date and the third hole was partially completed prior to the Christmas break totalling 1005.5 metres as part of the planned definition stage of exploration.

Down hole electromagnetic surveys are yet to be conducted to assess the extent of mineralisation.

MPJ has expanded the next stage of the program to test strategic targets along the entire 40 kilometre strike. This will include an extensive geophysical ground survey.

Managing director Joshua Wellisch commented:

“MPJ’s leading Technical Team continues to achieve positive results by maintaining its scientific and methodical approach to the exploration using the knowledge and expertise accumulated from previous modern nickel discoveries made by the team.

“The confirmation of a new major lava channel at Roe 1 is a very exciting progression which significantly increases the prospectivity of the entire 40km strike at Roe Hills.

“It’s a major credit to Mr Hutchison and our technical team as they continue to pinpoint successful drill holes, rapidly defining strategic target channels highly prospective for major discoveries.

“The nickel intersections and the geology recorded in the holes to date at Roe 1 have a very strong correlation to the discovery history of known deposits such as Cosmos, Prospero, Sinclair, Cerberus, Silver Swan and Camelwood Nickel deposits.

“These deposits were all discovered over a period of time by following the disseminated and narrow Nickel sulphide leads within the core of the lava channel.

“Once the channel core is located DHEM and clever geological interpretation will assist in the discovery of the bigger, potentially economic nickel sulphide deposits.”


Roe 1 Prospect


The first cross section of the diamond drilling has now been completed at Roe 1, the northern most prospect area at the company’s Roe Hills Project.

Elevated nickel-copper-PGE mineralisation was intersected within the core and at the base of a thick (>170 metre) lizardite serpentinised ultramafic flow which has many similarities and correlations to the Cosmos ultramafic system.

Two holes have been completed to date (RHDD0009 and RHDD0010).

This confirms the existence of a thick fertile ‘lizardite’ ultramafic lava channel, with nickel mineralisation situated in the core and at the base of the system, constituting a growing set of multiple ultramafic pulses.

The geology is comparable to that at the Cosmos Nickel Project where the core of the thick lizardite serpentinite system contained large low-grade disseminated sulphide above the rich massive sulphide deposits, which were the result of the early ultramafic pulses depositing high grade nickel sulphide mineralisation at the base and on the flanks of the ultramafic system.

This is encouraging as the rocks at Roe 1 appear to be the fertile upstream portion of an extensive fertile system and there is potential for downstream nickel sulphide deposition.

The confirmation of multiple fertile lava channels at both ends of the 40 kilometre strike at Roe Hills increases the scope of the entire system while still conforming to the company’s geological “Cabbage Leaf” model (Kambalda style komatiite flows).

Four diamond drill holes across 2 cross-sections had been planned at Roe 1 totalling about 1,500 metres, with 1005.5 metres completed so far.

Drill hole RHDD0011 on the second cross-section was temporarily suspended at a depth of 290 metres above the anticipated mineralised zone due to equipment failure prior to Christmas.

This will be completed at the commencement of the next stage of drilling along with the last planned hole RHDD0012.

The holes were designed to establish geological stratigraphic control so as to bring Roe 1 in line with Talc Lake’s exploration progress.


Talc Lake Prospect

Talc Lake has nickel mineralisation intersections over a continuous distance of 400 metres and recent intersections further confirm that the system is consistent with the company’s geological “Cabbage Leaf” model.

The down plunge extension significantly expands the projects prospectivity of a major discovery as these disseminated styles of mineralisation typically lead to massive Nickel sulphide accumulations downstream.

Previously reported intersections from the Talc Lake Prospect have clearly defined the Nickel hosting channel which MPJ is targeting. Results are:

- ROE 114: 1 metre at 3.53% nickel from 155 metres including 0.5 metres at 6.15% nickel from 155.5 metres;
- ORTL-1: 1.9 metres at 1.65% nickel from 131.55 metres;
- ORTL-1: 0.15 metres at 1.33% nickel from 222.75 metres; and
- ORTL-2: 0.3 metres at 1.46% nickel from 182.8 metres.

More recent results are 4.3 metres at 0.53% nickel from 211.1 metres including 0.2 metres at 2.66% nickel from 215.2 metres and 1 metres at 0.69% nickel from 227.64 metres.

Most importantly a potentially large scale target has been recognised in an historic Fixed Loop Electromagnetic (FLEM) survey completed over the Talc Lake area which produced the start of an anomaly on the south-eastern edge of the survey.

The Late Time response FLEM anomaly had not been previously considered due to its proximity to a larger anomaly which was historically drilled and turned out to be a sulphidic shale hosted conductor.

This newly recognised anomaly now aligns with the interpreted komatiite channel direction on the southern side of the known massive sulphur source.

This same sulphidic unit was intersected to the east of the nickel mineralisation in RHDD0001 where the lava channel has thermally eroded into the sulphidic shale providing the sulphur source necessary for the formation of the nickel sulphide mineralisation.

This sulphidic shale is a unique-highly conductive marker horizon and this newly defined FLEM target may be the downstream location of the massive nickel sulphide accumulation as depicted by the “Cabbage Leaf” model.

Technical Director Neil Hutchison will work closely with the Newexco Team to design and instigate a new High-Powered Electromagnetic (EM) survey over the lava channel area, extending the survey south-easterly to fully define the source of this EM anomaly located on the edge of the historic FLEM survey.

It is anticipated work will recommence in February 2015.


Analysis

The discovery of a new thick nickel sulphide fertile lava channel increases prospectivity of the entire 40 kilometre strike at Mining Project Group’s Roe Hills Project.

Providing interest, the nickel intersections and the geology intersected have a very strong correlation to the discovery history of known deposits such as Cosmos, Prospero, Sinclair, Cerberus, Silver Swan and Camelwood Nickel deposits.

Further exploration will assist in the discovery of the bigger, potentially economic nickel sulphide deposits.



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