- encouraging results from a shallow drilling program into the Burbank nickel prospect
- commencement of drilling at the Melba Flats nickel-copper-platinum group metals-gold project
- completion of detailed planning and permitting of a resource definition drilling program to commence at Avebury in the June quarter
- acquisition of additional tenements in western Tasmania which are considered prospective for Avebury style nickel sulphide deposits
- $750,000 raised to much accelerate the resource and exploration drilling at Avebury, Melba Flats, East Avebury and Burbank
COMMENTS
Over the quarter, sentiment continued to improve with nickel now trading above US$7,000, some 55% above the September 2001 low. The prognosis for the future is bright with shortages in sulphide nickel seen for at least the next five years.
In late March to mid April, Allegiance placed 16,656,555 shares and 366,667 December 2003 options to raise $749,544.96. This will enable a much accelerated resource drilling and exploration programme at Avebury, Melba Flats and our other promising projects at East Avebury and Burbank. This programme has commenced and will continue through the current quarter.
BURBANK - EL 22/97 and EL 28/88: (Allegiance 100%, Rio Tinto 2% net smelter royalty)
In February, the Company announced the detailed results of a shallow core drilling program on the Burbank prospect, four kilometres west of Avebury.
Six short holes totaling 130 metres were completed into a substantial nickel anomaly located by previous mapping and geochemical programs. Results of the drilling were most encouraging with all six holes intersecting significant nickel mineralisation.
All cores sampled (41 discontinuous samples totaling 92m) were strongly nickel anomalous, generally in the range 1.1-1.5% Ni with a highest value of 1.78% Ni and a lowest value of 0.5% Ni.
Zinc values were also anomalous in the range 0.2-0.4% Zn, which is closely analogous to surface sampling over the Avebury and East Avebury deposits.
Petrological studies suggest the nickel and zinc are present in clays and iron oxides possibly developed from oxidised sulphides within an altered ultramafic host.
Encouraged by these early results, Allegiance plans to further drill test the Burbank prospect at greater depths with a larger helicopter supported rig in the 2002-03 summer period.
AVEBURY EL 28/88: (Allegiance 100%, Rio Tinto 2% net smelter royalty)
Detailed planning and permitting of a 3,500 metre core drilling program at Avebury were completed. Drilling is due to commence in late May and be completed by mid-September 2002.
The program is designed to firstly improve the definition of the South Avebury resource and secondly test for shallow extensions of Central Avebury and North Avebury.
Results of the program will lead to a re-estimation of the identified Avebury resources ahead of the design of an underground decline development which is seen as the next logical step in the detailed evaluation of Avebury.
MELBA - EL 43/92: (Allegiance 100%, Rio Tinto 2% net smelter royalty)
In late March 2002, Allegiance announced that it had recommenced drilling at Melba Flats. A program of five cored holes totaling 600 metres is planned to further test the Nickel Reward sulphide deposit where previous drilling and trenching intersected high grade nickel-copper-gold-platinum group metal mineralisation in a series of gabbro dikes.
It is anticipated that the drilling will be completed in early May and results will be available by late May 2002.
NEW TENEMENTS: (Allegiance 100%)
In the previous quarter, Allegiance announced that it had acquired EL 14/2001 in the Heazlewood area. In the current quarter, a further two tenements were applied for in the Renison-Rosebery area, east of Melba Flats.
One of these, EL 5/2002, has subsequently been granted and the other, ELA14/2002, is still in the application stage.
All three tenements are considered prospective for nickel sulfide deposits of the Avebury-Melba styles, and their acquisition reflects the Company's belief firstly in the future strength of the nickel market, and secondly in the prospectivity potential of this area of western Tasmania.
All three areas have recently been covered by airborne magnetic, electromagnetic and radiometric surveys flown by Mineral Resources Tasmania. The direction of future work by Allegiance will be strongly influenced by the results of these surveys.
A Howland-Rose MSc, DIC, FGS, FIMM, FAusIMM, FAIG, CEng CHAIRMAN
The information contained in this report is based on information compiled by Lindsay Newnham and Anthony W Howland-Rose who are corporate members of the Australasian Institute of Mining and Metallurgy and/or Australian Institute of Geoscientists and who have individually more than five years experience in the field of activity being reported on. This report accurately reflects the information compiled by these members.
ends - AAP
AGM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
