Auroch Minerals Ltd (ASX:AOU) has detected a strong off-hole conductor coincident with the base of the modelled channel after completing down-hole electromagnetic (DHEM) surveys on reverse circulation (RC) drill holes at Valdez prospect, which is part of the Leinster Nickel Project in Western Australia.
A 7,000-14,000S conductive body was identified off-hole from drill-holes VZRC002 and VZRC003 with the modelled plate sitting down dip and slightly north of the two drill-holes.
Geological logging of the holes shows the conductor to be coincident with an ultramafic-basalt lithological contact, an important feature for Kambalda-style komatiitic massive nickel sulphide mineralisation.
Auroch is eagerly awaiting the geochemical assay results from the RC drilling in order to characterise the ultramafic units to confirm their potential to host significant nickel sulphide mineralisation.
Potential for "significant mineralisation"
Auroch managing director Aidan Platel said: “The Auroch team is very excited by this DHEM result.
“Given the proximity of Valdez to Saracen Mineral Holdings Limited’s (ASX:SAR) Waterloo high-grade nickel sulphide deposit, the company has always believed that a systematic exploration strategy at Valdez has the potential to discover significant nickel sulphide mineralisation.
“We utilised first the historic magnetics and surface EM work to get us in the right area and then narrowed in on the main channel zone via aircore drilling and the subsequent deep RC program.
“This exploration strategy and use of DHEM has proven successful at the company’s Saints Nickel Project in targeting and drilling massive nickel sulphides, and we have recently seen other nickel sulphide discoveries in WA identified by our peers using DHEM.
“This strong DHEM conductor at Valdez now presents a high-priority drill target that we are eager to test with a diamond drill program in November.”
Shares have been as much as 7% higher this morning to 9.9 cents, approaching the 12-month high of 10 cents reached on August 17.
Geochemical assay results are pending for all drill holes, with full litho-geochemical review to be completed.
Strong DHEM conductive plate overlying surface MLTEM plate and aeromagnetic highs, all coincident with fertile ultramafics in a modelled basal channel.
A diamond drill program has been planned to test the high priority DHEM target and drilling is expected to begin in early November following resource drilling at the Horn.
Assay and DHEM results are also pending for the Firefly and North Sinclair prospects.
Ongoing work for the company includes a tightly run set of programs across both the Saints and Leinster nickel projects.
Diamond drilling will begin later this month at the company’s Horn nickel sulphide deposit, aiming to upgrade the historic resource estimate to JORC 2012-compliant status.
Further aircore drilling of less-advanced prospects across the Saints and Leinster projects is ongoing.