The Nepean acquisition adds yet another string to Auroch’s bow with the company now assembling an impressive pipeline of projects across Western Australia’s Eastern Goldfield’s. The historic operation joins its swag of evolving nickel projects in the region which includes the company’s emerging Leinster project, the near-term resource opportunity at Saints and the latest addition, the under-explored Nepean which boasts a remnant resource of 591,300 tonnes at a very respectable 2.2 per cent nickel.
However, the in-situ resource at Nepean looks set to grow with Auroch having already identified a number of targets adjacent to the underground workings and along the more than 10km of nickeliferous stratigraphy that sits within the company’s new tenure.
Shallow drilling by previous explorers, immediately south of the mine, has returned a treasure trove of high-grade intercepts. The strikes include 3m at a mind-boggling 11.78 per cent nickel from 37m and 3m at an equally stunning 9.93 per cent nickel from only 49m down-hole providing a compelling target for Auroch’s developing exploration program.
The Nepean mine is located 25km south of Coolgardie WA, to the west of Kalgoorlie, and was discovered by Metals Exploration in 1968. The underground mine commenced operation in 1970 generating more than 1.1 million tonnes of ore at around 2.99 per cent nickel before being shut down in 1987 due to falling nickel prices. The rich ores from Nepean were trucked to the nearby smelter at Kambalda and ultimately produced more than 32,300 tonnes of nickel metal over 17-year life of the mine.
Auroch’s new project package at Nepean comprises of 2 granted mining leases, 11 prospecting leases, the historic mine and resources and more than 10km of strike of underexplored, nickel-bearing ultramafic stratigraphy. The tenure covers over 3,000 hectares of this fertile mineralised terrane.
The nickel mineralisation at Nepean typically takes the form of high-grade semi to massive sulphides and is often associated with the mafic-ultramafic geological contacts within the mine. Auroch has already proven its skill at targeting this style of mineralisation at its Saints discovery and will be seeking to repeat the achievement at Nepean.
Historical mining at Nepean has already identified sulphide lodes along two of these contacts. The company expects there is also the potential for additional lodes adjacent to the existing mine and extensions to the sulphide lodes along strike to the south.
Initial work Auroch has planned at Nepean includes modelling of the mine and the exploration database, along with modern geophysical analysis to assist in targeting the future drilling and development program. The company already has a maiden program of 3,000m of reverse circulation drilling in the works which is designed to follow up on previous high-grade results. An expanded program of diamond drilling is also expected as the company gains a better knowledge and understanding of the mineralised system.
Auroch will acquire 80 per cent of the project by paying the current holders, Eastern Coolgardie Goldfields, $2 million in cash and $1.5 million in scrip, issuing 8,337,966 shares in the company. The remaining 20 per cent of the project will be held by local WA development syndicate Goodfellas, who will pay $500,000 and provide its financial and corporate expertise to expedite the development of the project.
With a pipeline of nickel sulphide projects developing across the Goldfield’s and nickel price reaching for a five-year high - trading at more than US$15,750 per tonne - Auroch looks to be sitting pretty in WA as it continues drilling at its emerging Leinster project and launches into exploration at Nepean in the coming weeks.
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