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Mayong

402 Posts.

10/07/15

22:14

Post #: 15616573
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Originally posted by Ellendale ↑

Ok, first thing to say is that I've seen this company and project in the news, but I wouldn't say I've looked into the detail in great depth. So I'll speak in generalities from personal experience of drilling for nickel in this and many other parts of the world.

Your first question. EM models are nearly always a 1.5 dimension model. The plate is the best approximation the modelling can achieve and is quite simplistic in comparison to the real geology. EM modelling equations are horrendously complicated, and the computer processing power needed to solve the equations for real world geometries would require the sort of supercomputers usually only available to the Pentagon or NASA, so the models are simple sheet models that everyday computers can handle. The real conductor won't be a sheet, particularly in komatiite situations where the ore system is actually most like a cigar shape along a channel in the volcanic ultramafic system. but sheets are what the modelling software can handle, so that's what we get. Having said all that, multiple sheets modelled with consistency over a large strike extent will have some geological validity. Now here's where it gets tricky. As I said before, the environments required to make nickel sulphides in this ultramafic volcanic environment requires a lot of sulphide in the substrate sedimentary sequence in the footwall of the volcanic so. These sediments are planar sheets that stretch for kilometres, so will give large EM plate signatures that stretch for kilometres as well. The bad news is that the nickel system will be on that same plane on the footwall contact of the ultramafic volcanic, surrounded by the sulphidic sediments - so differentiating the conductors associated with nickel ore from the surrounding barren sulphides in the sediments becomes a geophysicists nightmare - drilling is the only way to tell one from the other, which is why you need to do a lot of drilling to make the discovery. This also answers the question someone else asked of why I might think it could come up with nothing - there's no guarantee that any of the conductors are nickel ore lenses over barren sedimentary sulphide, there's just no way to tell until you drill. Yes, Lots of good indications with minor nickel intersected so far, but it still could amount to nothing. Just have to drill and see.

Your second question, the strike of the units are roughly North-South, so it's always a good idea to drill holes across that stratigraphy (east west) to get as much geological context to help with your interpretations surrounding the target in question.

Hope that helps with your appraisal of their work to date. Cheers.

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If if I was thinking about adding this to my practice portfolio, would you recommend it?

You're option would only be taken a make believe portfolio and should be noted that it would have no bearing on my actual portfolio.

MPJ Price at posting: 0.8¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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