Diatreme Resources (ASX:DRX) shares should rise today after intersecting water flows below 530 metres from initial deep water bore drilling at its Cyclone Zircon heavy mineral sands project in Western Australia.
The water is critical to the proposed mineral sands operation.
Diatreme was granted an ASX trading halt on Friday to review and verify material information from the bore, which is now at a depth of 628 metres with drilling to continue to the 800 metre target.
High yielding sandstone aquifer had been intersected, encountering 98 metres of fine porous sandstone beds with good to high permeability.
The water flows appear to be part of an extensive Officer Basin aquifer system previously intersected by oil explorers 80 kilometres to the east of the current bore.
This successful water search, virtually on site of the proposed mineral sands operation, will enhance mining infrastructure by reducing the need for water to be pumped in from a distant location.
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