The discovery was made after a fixed loop electromagnetic (FLEM) survey as well as soil sampling and geological mapping.
Results have confirmed a ground electromagnetic conductor associated with nickel and cobalt soil anomalism.
Soil sampling has also confirmed anomalous nickel, cobalt, copper and zinc soils and a gossan up-plunge from the modelled FLEM conductor.
Diamond drilling is scheduled to test the conductor and the mineralised zone in late August.
The FLEM survey aimed to further define a previously identified 300-metre-long airborne versatile time-domain electromagnetic (VTEM) conductor near the northern end of a belt of fault-bounded mafic-ultramafic rocks.
The survey comprised of a 300 by 300 metre loop with EM readings conducted on 75 metre spaced lines.
A south-southwest plunging moderately conductive bedrock conductor was identified, which has the potential to indicate an accumulation of sulphides.
Analysis shows coherent patterns
A total of 50 soil samples were collected from auger holes with depths less than 1 metre, along four 75 metre spaced grid lines.
Lab results show peak concentrations of 2,030 ppm nickel, 154 ppm cobalt, 172 ppm copper, 45% iron, 1% chromium and 1,200 ppm zinc from the samples.
Gridded sample analysis shows coherent patterns for both mineralisation and lithology.
Gossanous soil samples were found up-dip and up-plunge from the modelled FLEM conductor at three locations.
The strongest gossan was at the up-plunge projection of the conductive body in the northeast of the Young Henry grid.
Sulphur in two of the samples suggests they are in-situ hydrothermal-related, with sulphur more likely to be oxidised and leached from a transported laterite.
A fault breccia sample at the eastern contact of the ultramafic returned several anomalous results, including 0.12% zinc, 0.2% nickel, 123.5 ppm copper, 0.8% chromium and 96 ppm cobalt.
The Mount Read project encompasses a belt of Cambrian volcano-sedimentary rocks correlated with the Mount Read Volcanics (MRV).
The MRV hosts all western Tasmania’s significant base and precious metal mines and mineral occurrences, several of which have been significant producers of base metals for over 100 years.
The project contains two main prospects, the Thomas Creek cobalt-copper-gold prospect and the Henrietta cobalt-nickel-copper prospect.
Sample and survey results from the prospects highlighted the likely presence of a mineral system that could potentially host economic mineralisation.