Australian Vanadium Ltd (ASX:AVL) aims to extend the ground position at the Coates Nickel-Copper-PGE Project collaboration with Lithium Australia NL (ASX:LIT) and Mercator Metals Pty Ltd through two new tenement applications.
The new applications will increase the area by 52.6 square kilometres to 111.6 square kilometres and strengthen the potential of Coates, which lies 29 kilometres SSE of the Julimar nickel-PGE discoveries by Chalice Gold Mines (ASX:CHN).
The applications cover chrome anomalism in pisolite geochemistry to the east and extend the landholding north of a platinum and palladium anomaly identified from bottom of hole geochemistry drill holes reported by LIT.
Ground is sought after
AVL managing director Vincent Algar said: “The results from AVL’s geological compilation of the historical Coates Project data, in addition to recently released coincident nickel-copper-PGE soil anomalism on adjacent LIT ground, strongly supports the value of this ground in the search for additional nickel-copper-PGE discoveries such as those at Julimar and Yarahwindah.
“Ground in the area is now extremely sought after and AVL is pleased to be able to add to the existing portfolio with these new applications.
“Exploration including soil geochemistry and airborne electromagnetic surveys are being planned now in this exciting area.”
Extending collaboration land
The new tenement application extends the collaborative landholding by AVL, LIT and Mercator northwards of where platinum and lead anomalism has been identified by LIT in short vacuum holes drilled for bauxite exploration.
This anomaly could be significantly larger than currently defined, as the elevated platinum and lead values extend to the edge of the current sampling.
Coates Mafic Complex location and new tenure with Chalice's Julimar discovery shown on 80-metre GSWA Aeromagnetics Imagery.
New tenement application E70/5589 covers possible extensions of the Coates Mafic Complex to the east of E70/4924.
Methods for the best way to determine bedrock geology beneath recent cover (laterite, slope and drainage sediments) are under evaluation by AVL.
The company has an approved program of works to undertake sampling and drilling within the Vacant Crown Land portion of its holding at the Coates Project and will be starting exploration in the summer.
AVL, LIT and Mercator are working together to gain statutory approvals for the remaining areas within granted tenements before starting fieldwork, including development of a conservation management plan and landowner access agreements.
Fieldwork over the remaining areas of the granted tenure will then start.
LIT has completed early magnetic inversion modelling of available state aeromagnetic data to determine the extent of proposed soil geochemistry and geological mapping program.
Nickel geochemical targets will be surveyed using airborne electromagnetic surveys, possibly followed by moving loop electromagnetic equipment (MLEM), to detect conductive rock types, which may include nickel sulphides.
Conductive targets will then be ranked for priority to be drilled once statutory approvals are acquired.
Concurrently, surface sampling programs and geophysics surveys will be evaluated and designed for the two new AVL tenement applications, while bringing the tenements to grant is pursued.
In trading halt
AVL is now in a trading halt with an announcement pending in relation to a capital raising.
The halt will be in place until the commencement of normal trading on Friday, September 25, 2020 or when the announcement is released to the market.