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Australian Potash hits new high on identifying massive nickel sulphide targets at Laverton Downs

Last updated: 11:14 09 Apr 2021 AEST, First published: 10:53 09 Apr 2021 AEST

Australian Potash Ltd - Australian Potash identifies assive Nickel sulphide targets at Laverton Downs
Shares have been as much as 56% higher to 25 cents, a new record high.

Australian Potash Ltd’s (ASX:APC) hit a new record high after ongoing work at its 100%-owned Laverton Downs Project (LDP) returned compelling targets with Kambalda-style massive nickel sulphide potential.

A limited program of Versatile Time Domain Electromagnetic (VTEMTM) surveying has returned six well defined conductive plates interpreted to be indicative of massive sulphides. 

The geological setting and initial geochemical analysis support the potential for these plates to represent nickel sulphides with three high priority target areas defined and plans for drill testing underway.

Shares have been as much as 56% higher to 25 cents, a new record high for the SOP development company which has a market cap of approximately $88.5 million.

“Similar pathway to Lake Wells Gold Project”

Australian Potash managing director and CEO Matt Shackleton said: “The strength of the VTEMTM targets generated from the first time use of this technology at Laverton Downs is highly encouraging. 

“We are following a similar pathway to creating value as we did at the Lake Wells Gold Project where initial low-cost exploration by APC defined targets which attracted a major partner to fund ongoing work.

“Beginning with high-precision geochemical analysis and interpretation by external consultancy CSA Global, we then opportunistically flew a limited VTEMTM program.

“The strength of the EM response at these compelling conductor targets suggests we go directly to a drill program targeting massive nickel sulphide mineralisation.”

Laverton Downs Project initial VTEMTM survey extent with modelled conductor plates. VTEMTM image is dZ45 HDV, where the pink colours are conductive. 

Looking forward

Alongside the VTEMTM survey the company has located and resampled 450 legacy drill holes that will extend the geochemical model over the project area and will aid gold and nickel exploration targeting.

Results and analysis from this sampling program are pending, and in the meantime the company is also planning an initial drill program for gold and nickel sulphide targets.

Shackleton said: “With both gold and nickel sulphide targets, APC’s exploration team are planning a first pass drill program to create further value in this strategically located asset.”

While encouraged by these LDP results and recent strong hits at the Lake Wells Gold Project, APC remains fully focused on developing the flagship Lake Wells Sulphate of Potash (SOP) Project.

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