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AusNiCo uses geophysical techniques to define drill targets at Pembroke discovery

Published: 10:18 27 Apr 2011 AEST

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AusNiCo (ASX: ANW) has used geophysical techniques using Induced Polarization (IP) at Pembroke, Silver Valley and Mt Clara to identify zones of disseminated sulphide mineralisation.

The IP survey  data has identified new drill targets which will also be drilled during the reverse circulation program. Drill testing will also proceed at the regional prospects of Boyne River, Kilkivan East and Poperima Creek.

A 2,500 metre reverse circulation drilling campaign is underway to define the extent of mineralization and tonnage potential at Pembroke, Silver Valley, Mt Cobalt and Mt Clara.

AusNico is focused on the discovery and economic development of its nickel sulphide discovery at Pembroke, Silver Valley and Mt Cobalt projects.

Nickel Sulphides are highly prized, rare discoveries with only two ore-grade nickel sulphide discoveries in Eastern Australia in the last 55 years, the Avebury Nickel Mine in western Tasmania discovered by Allegiance Mining NL in January 1998 and now Pembroke, discovered by AusNiCo in 2008.

AusNiCo discovered ore grade nickel sulphide mineralisation at its Pembroke Prospect on the Black Snake Plateau, 30 kilometres south of Kilkivan in South East Queensland during mid 2008.

AusNiCo’s discovery hole PEM2 at the Pembroke Prospect intersected 50 metres of nickel sulphide mineralisation averaging 0.34% nickel, and at the point that the hole was stopped it was still in the nickel sulphide mineralisation.

Within that 50 metres of nickel mineralisation was a four metre zone averaging 1.1% Ni which represents an intercept at ore-grades and widths.

AusNiCo believes that it has discovered mineralisation that has strong similarities with the Avebury-style of nickel sulphide deposit.

Nickel mineralisation discovered within AusNiCo’s extensive tenements in South East Queensland show potential for a new nickel province more than 70 kilometres long.

Current data from the previously completed airborne electromagnetic survey was modelled in 3D and defined a broad zone of interest with increased magnetic susceptibility.

This was followed up early this year with laboratory test-work on core samples and field based down-hole IP (chargeability and resistivity) measurements. Ground IP survey, covering a broader area has now been undertaken at Pembroke, and resulting IP anomalies from the first five survey lines.

AusNiCo has postulated the existence of a shell of disseminated sulphide mineralisation around the magnetic features at Pembroke and Mt Cobalt and therefore believes that the IP survey will help define zones of consistent disseminated sulphides such as were intersected in PEMD1, PEMD3 and PEMD4.

It is considered that the IP response reflects total sulphide content, which includes pyrite, pyhrrotite and any copper sulphides.

There is an observable difference between disseminated magnetite dominant serpentinite and disseminated magnetite-(Fe-Cu-Ni-Co) sulphide (+/-Au) mineralised serpentinite.

To support the IP survey data, a large reconnaissance gradient array survey will be completed over this area in Q2 2011.

The first line of the IP survey at Silver Valley, was completed to further confirm the effectiveness of the technique to display the location of known mineralised zones previously intersected in SVGD1. The second parallel line at 100m south (along strike) displays a strong chargeability zone at around 30m below surface.

This result provides additional confidence that the Silver Valley intersection extends to the south as predicted from the Gossan corridor and soil anomalies previously reported.

Additional IP survey lines will be completed in Q2 2011 along with a drilling program to confirm the strike extension and depth of the high-grade zone.

The detailed analysis of the IP survey data at Pembroke and Silver Valley provides confidence that this technique can be used effectively to identify drill targets that have a high probability of hosting mineralisation, and significantly improving the effectiveness of the AusNiCo drilling programs.

In the first quarter 2011 diamond drilling on AusNiCo’s 100% owned Black Snake Project focused on the Pembroke and Silver Valley prospects.

 

Metallurgical Test-work

A sample of drill core from Pembroke was supplied to an independent metallurgical consultant for flotation test-work. The sample was taken from PEMD1 drill core, at a depth of 53m to 59m.

The composite head grade of the test sample was 0.7% nickel. A sighter flotation test has been completed and although the grind size, reagent dosage and flow sheet have not yet been optimized, a very positive and encouraging result was achieved.

The nickel recovery to the combined rougher concentrate was 72.6% and the concentrate contained 11.8% nickel.

AusNiCo has commenced further metallurgical testing of the other nickel mineralised zones intersected in the core drilling at Pembroke, completed during first quarter 2011.

 

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