“The Auroch team is very excited by this DHEM result. Given the proximity of Valdez to Saracen’s (ASX:SAR) Waterloo high-grade nickel sulphide deposit, the Company has always believed that a systematic exploration strategy at Valdez has the potential to discover significant nickel sulphide mineralisation. We utilised first the historic magnetics and surface EM work to get us in the right area, and then narrowed in on the main channel zone via air-core drilling and the subsequent deep RC programme.
This exploration strategy and use of DHEM has proven successful at the Company’s Saints Nickel Project in targeting and drilling massive nickel sulphides, and we have recently seen other nickel sulphide discoveries in WA identified by our peers using DHEM.
This strong DHEM conductor at Valdez now presents a high-priority drill target that we are eager to test with a diamond drill programme in November.”
The DHEM surveys were conducted following the completion of a 1,500m RC drill programme. The purpose of the deep programme was to further test the Valdez Prospect following encouraging air-core (AC) results. A litho-geochemical review of the AC results showed elevated Ni and MgO within a modelled embayment along an ultramafic-basalt contact representing a potential komatiite channel. The channel target was coincident to an anomalous magnetic high and a historic surface EM conductor with a strike length of 1.2km, all of which are very encouraging signs for massive nickel sulphide mineralisation.
A diamond drill programme has been planned to test the high priority DHEM target. Drilling is expected to commence early November following resource drilling at the Horn. Assay and DHEM results are also pending for the Firefly and North Sinclair Prospects.
Ongoing work for the company includes a tightly run set of programmes across both the Saints and Leinster Nickel Projects. RC drilling is expected to commence shortly at the T1 target at Saints, which is located approximately 30km west of Estrella Resources (ASX:ESR) recent discovery at Carr Boyd. Diamond drilling will commence later this month at the Company’s Horn nickel sulphide deposit, aiming to upgrade the historic resource estimate to JORC (2012) -compliant. Further AC drilling of less-advanced prospects across the Saints and Leinster Nickel Projects is ongoing.
AOU Price at posting:
9.3¢ Sentiment: Buy Disclosure: Held
