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Nelson Resources ticks off FY20 achievements with sights set on discovering next Tropicana

Snapshot

Since listing on the ASX in December 2017 with 20 square kilometres of tenure, the company has delivered on its exploration commitments across its portfolio of gold assets in the prolific Eastern Goldfields region of WA.

Nelson Resources Ltd -

Quick facts: Nelson Resources Ltd

Price: 0.073 AUD

ASX:NES
Market: ASX
Market Cap: $8.38 m
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Nelson Resources Ltd (ASX:NES) has its sights set on discovering the next Tropicana-style deposit as it ticks off several successes during the 2020 financial year despite a challenging 6-12 months due to COVID-19.

The company has maintained its focus on project building and exploration at its two key assets – the Woodline Project in the Fraser Range of WA and the Tempest Project, around 250 kilometres southeast of Kalgoorlie.

Woodline, which totals 828 square kilometres, is made up of the Grindall, Redmill, Harvey and Socrates projects while Tempest has the potential to host gold and base metals although historical exploration is limited and early-stage.

Nelson’s goal is to replicate IGO Ltd’s (ASX:IGO) corporate and exploration success within the Albany-Fraser province.

Corporate achievements

Non-executive chairman Warren Hallam highlighted Nelson’s achievements in its annual report for the year ending June 30, which included:

  • Completion of a highly oversubscribed rights issue and placement to existing and new shareholders raising $2.355 million after costs;
  • The completion of a planned reconsolidation of the Woodline project;
  • Having finalised an 18-month review of the large Woodline dataset, which will guide future exploration programs; and
  • The delineation of an exploration program for the next 6-12 months, which Nelson believes will produce substantial exploration success.

Completion of geophysics program

In mid-September, the company completed an ultra-high-resolution ground magnetics survey at Redmill and Grindall where previous works identified a 20-kilometre gold geochemical anomaly.

The survey was undertaken to define the anomaly and included more than 400-line kilometres of ground magnetics on 20-metre line spacings.

It identified the target geological units which are interpreted to host mineralisation that was intersected in previous Sipa/Newmont drilling that returned 10 metres at 1.29 g/t gold from 64 metres, including 1-metre at 7.8 g/t from 71 metres.

Field mapping has also identified a further structure which extends for more than 1-kilometre at West Socrates.

“Significant step forward”

Executive director and CEO Adam Schofield said he was thrilled with the outcome of recent fieldwork which may confirm a potentially large gold zone linked to the previously identified 20-kilometre gold geochemical strike.

He said: “We have clearly defined favourable targets for follow-up ground geophysics and drilling which is a significant step forward for the project.

“It is anticipated that drilling will commence in late October, with the results likely to be announced in December”.

Woodline project - future exploration

Follow-up exploration fieldwork is being planned for Redmill, Grindall and the Socrates area, including West Socrates.

Induced Polarisation and Electromagnetic geophysical surveys to map the disseminated sulphides associated with mineralisation are scheduled to commence in October and exploration drilling is planned for targets at Redmill, Grindall and West Socrates in late October.

Highly experienced industry professionals

Nelson appointed two highly experienced members to its exploration team – James Farrell joined the company as exploration manager and Justin Ward as senior geophysicist.

Farrell is a gold and base metals geologist with 18 years’ experience and specialist expertise in exploration and resource development in Australia and internationally.

He has significant experience with project generation, multidisciplinary project feasibility studies and project development strategy.

Ward is a highly regarded senior geophysicist with 24 years’ experience in mineral exploration in Australia, Africa, North America and Russia.

He has senior project exploration experience working in geoscience teams exploring for gold, base metals, iron ore, minerals sands and diamonds. He is an active member of the ASEG.

Tempest project

For the remainder of 2020, the company plans to undertake geophysics programs at the Tempest project, 250 kilometres east-southeast of Kalgoorlie and 90 kilometres northeast from IGO's Nova-Bollinger Mine and covering 105 square kilometres.

They are aimed at mapping the extent of the paleochannel and defining RC drill targets for 2021.

Nelson may look to fly an EM survey to potentially identify and base metal conductors as IGO Limited is conducting a large moving loop EM program at the Thunderstorm project adjacent to Tempest.

JV partner for Fortnum

The company is also in talks with a potential joint venture partner for its Fortnum project within the Peak Hill Mineral Field, about 14 kilometres southwest of the Fortnum Mining Centre.

There are four gold mineralisation prospects on the tenure. 

The Fortnum project tenement was granted in the 2019 September quarter and totals 21 square kilometres.

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