Read the announcements carefully in sequence and you can...

Read the announcements carefully in sequence and you can determine a reasonably good probability FIN's Mckenzie Spring has strong indication of Ni-Cu-PGE prospects (may not be a Julimar but even a smaller version perhaps) . The first hole drilled in first week of Oct may already be promising work in progress, which may have IMO in part explained the large volume today (not entirely due to speculation) and only confirming earlier surveys suggesting nickel sulphide mineralisation.

Secondly, Cazaly Resources (CAZ) (valuation $16m) only has a 49% interest and to be diluted to 30% with FIN holding 70%, yet CAZ is trading at 60% premium to FIN's current valuation. Which means, putting aside the prospects of Mckenzie Spring (which upon confirmation would only contribute a massive re-rate) , FIN should IMO already be at least north of 6c  (70% upside) or a valuation of circa $18m prior to drilling results.

I can see the excitement - the prospect that this may turn out to be the next ESR or a scaled-down version of Julimar. The question is if the volume we saw today tells us there is something more positive that could validate this hopeful speculation.

Oct 7 announcement

DDH1 has been engaged for the drill program. Drilling of the first hole (FNDD001) has commenced, with a planned depth of 470m. All drillholes will be cased with PVC to allow completion of DHEM surveys to assist with the identification of any sulphide mineralisation around the drill hole.

Aug 17 announcement

The McKenzie Springs Target was highlighted by a FLEM survey carried out during 2012, recently released to the public domain under the DMIRS Sunset Clause. The FLEM survey was designed and interpreted by Newexco Exploration Pty Ltd, renowned nickel sulphide consultants, on behalf of the previous tenement holder. The FLEM surveys were conducted to follow up on anomalous responses identified from Versatile Time Domain Electromagnetic (VTEM) surveys. The VTEM surveys identified a well-defined strike-extensive anomalous response over the McKenzie Springs Intrusion. The presence of the McKenzie Springs Intrusion had previously been confirmed by an airborne gravity gradiometry survey.

Three FLEM surveys were subsequently completed along the entire strike of the VTEM anomaly. The FLEM response was varied along strike of the intrusive, with the time-constant reaching values of 9ms, considered to be similar in amplitude to the Savannah orebody. There is significant variation in the response along strike, inconsistent with the numerous sediments in the area and suggesting the source is more likely to be sulphide related.

7 April announcement

McKenzie Springs Project
The Joint Venture Agreement with Sammy Resources Pty Ltd (a subsidiary of Cazaly Resources Limited (ASX:CAZ)) over exploration licence E80/4808 (McKenzie Springs Project), has been amended allowing Fin the rightto farm-in to an additional 19% interest in the McKenzie Springs Project (Fin currently holds 51%) by spending$500,000 on exploration by the 30th of November 2020.


MACKENZIE SPRINGS NICKEL-GRAPHITE PROJECT
(CAZ 49%, Fin Resources Ltd 51% with the right to earn 70%)

The McKenzie Springs project is located in the Kimberley region of Western Australia along strike to the Savannah Nickel Mine (Panoramic Resources Limited) and adjacent to the Macintosh Graphite deposits (Lamboo Resources Limited). The project comprises tenements E80/4808 and E80/4812 where first pass reconnaissance field work has recently been conducted.

The work included geological mapping, sampling and petrographic work following up on several areas of known mineralisation identified by previous exploration and further new areas of potential interest. The first areas visited were priority targets that contained nickel, copper and cobalt mineralisation in geological settings similar to the nearby Savannah Nickel operation and recently discovered graphite mineralisation

NICKEL-COPPER
The East Kimberley region has excellent potential for hosting magmatic nickel-copper sulphide and PGM mineralisation (Platinum Group Metals). Two significant mineralised bodies have been discovered in this area to date within intrusive complexes of the Halls Creek Orogen. These are the Panton Project, with a resource of 14.3 Mt @ 4.5g/t PGM+Au (Panoramic Resources, March 2012) and the Savannah Cu-Ni sulphide deposit with a resource of 3.1 Mt @ 1.5% Ni, 0.89% Cu and 0.08% Co (Panoramic Resources, July 2013). These deposits, owned by Panoramic Resources Ltd (ASX CODE: PAN), are 30km and 9km away from Cazaly’s E80/4808 McKenzie Springs tenement respectively.
The Savannah Nickel Operation has been in production since 2004 and exports concentrate to China via the port of Wyndham (240km to the north via the Great Northern Highway). Recent near mine exploration by Panoramic has indicated potential to extend the resource and mine life beyond 2017 with the discovery of a new lode at Savannah North.

Mineralisation within the Company’s McKenzie Springs tenement is associated with the basal contact of mafic-ultramafic rocks in a similar geological setting to the Savannah Nickel Mine to the north. Gossan outcrops were rock chip sampled returning results confirming the potential for ore grade mineralisation and previous results. Of particular note is one very high grade result which returned 12.8% Cu, 1.92% Ni and 0.17% Co taken from the McKenzie Springs No.1 gossan. Previous work here included mapping, geophysics and rock chip sampling by Anglo American (“AAM” and Dampier Mining Company Limited (BHP) in the early 1970’s. The gossan is of interest due to the consistent nature of elevated copper and nickel results and some IP anomalism (returned from an Induced Potential geophysical survey). Three very shallow holes were drilled by BHP to less than 60 metres confirming the elevated copper-nickel anomalism. Two further holes were drilled by Breakaway Resources Limited in 2006 at the southern end of the gossan, which outcrops for over 120 metres, but returned low level results.

The company sees potential for further work at McKenzie Springs No.1 and also more regionally over other gossanous and covered areas where similar stratigraphy to that hosting the Savannah deposit to the north exist in the project area. Compilation and sourcing of historic data sets, including airborne geophysics, is ongoing and will assist in further target prioritisation for follow-up on the ground.