kurnalpi nickel project drilling now 14 target

The Kurnalpi Nickel Project area covers a largely concealed
northnorthwesterly trending ultramafic sequence. Previous
exploration drilling has been assessed in order to estimate
the exploration target size of a nickel laterite deposit present
over a portion of the area of interest.
Based on a lower cut-off of 0.7% nickel and including
internal waste, the Exploration Target is estimated to be
within the following range:
Kurnalpi Nickel Exploration Targets:
Lower range:
3.9 Million Tonnes at 0.95% nickel and 0.09% cobalt
Upper range:
4.3 Million Tonnes at 0.95% nickel and 0.09% cobalt
SHANNON
Resources Ltd
www.shannonresources.com 2
Mackay & Schnellmann Pty Ltd was commissioned by Shannon Resources Limited
to assess extant drilling and related geophysical data available from DOIR open and
closed file archives with the objective of delineating nickel exploration targets
covering portions of the company’s tenements at Kurnalpi, Western Australia.
The focus of the study was ground, designated the Kurnalpi Nickel Project, covered
by Mining Lease Application 28/185, Exploration Licence 28/1477 and P28/1037. The
area underlain by a poorly exposed northnorthwesterly trending folded and faulted
ultra-mafic-mafic sequence which, on the basis of magnetic data, extends over a
strike length of some ten kilometres within the project area.
Further investigation of the available exploration drilling and EM geophysical data
was undertaken for the vicinity of the small nickel laterite deposit with a view to the
selection of future drilling targets aimed at testing the Kurnalpi Nickel Project area for
potential nickel sulphide mineralisation at depth. This study has identified 14
drilling targets for future investigation recommended to be initially tested by utilizing
RC drilling for an estimated total of 3200 metres and by downhole EM techniques.
Drilling is to commence in January 2007 to test the 14 identified nickel sulphide
targets.