Nickel Exploration Prospects

Exploration Approach

The full portfolio of currently identified nickel targets, will be the subject of an aggressive surface drilling campaign using a combination of RC and diamond drilling methods to test both empirical and conceptual nickel targets. Based on the outcome of these initial holes, near surface targets will then receive both follow up, closer spaced RC drilling to define potential nickel mineralisation coupled with select diamond drilling to ensure both structural, metallurgical and geotechnical data is collected to assist the future analysis and reporting of any discovered nickel mineralisation.

A significant proportion of these holes will also undergo Down Hole Transient Electro-Magnetic surveys (“DHTEM”). DHTEM survey is widely recognised as a fundamental tool in brownfields nickel exploration. These surveys can assist the progress of targets from early stage anomalies through to reported mineral resources rapidly, if successful. A number of strategically located, historical drill holes originally completed by WMC, did not undergo DHTEM at the time of their original drilling and where practical, these holes will be re-entered and surveyed with this technique, maximising the value of the significant historical investment in surface drilling by WMC.

Plan View of Kambalda Nickel Project highlighting location of named Exploration Targets

East Cooee

The East Cooee prospect area is on the eastern limb of the Cooee Anticline and is currently poorly defined by drilling. The estimates of nickel mineralisation completed by Lunnon Metals are therefore only considered as an Exploration Target and are not reported as Mineral Resource. There is however sufficient drilling to highlight the potential of the area and its worthiness for ongoing exploration.

The estimation by the Company of a potential exploration target for nickel mineralisation in the area in 2020 concluded that a range of between 500 kt-750 kt @ 1.25% to 2.5% Ni was possible on the 11 hanging wall mineralised surfaces and at/on the basalt-ultramafic contact in trough locations. The potential quantity and grade of the Exploration Target is conceptual in nature. Lunnon Metals notes that there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Importantly the first of two potential trough positions modelled (West Trough) is generally poorly tested with respect to potential trough mineralisation while the second parallel, down-dip, trough (East Trough) has numerous sparsely drilled mineralised intercepts, including holes:

  • CD555: 1.24 m @ 3.70% Ni from 196.41 m;
  • CD587: 2.25 m @ 3.36% Ni from 285 m; and
  • CD315: 3.33 m @ 2.75% Ni from 479.9 m.

The above intercepts are considered to be approximate true widths of the mineralisation recorded. The East Cooee prospect areas will immediately feed into the Company's surface exploration program and have the potential to define near surface nickel mineralisation with targeted RC drill campaigns.

Cooee Anticline

The Company’s re-interpretation of the litho-structural setting across the KNP area indicates there is potential for further, previously unidentified, troughs in the Cooee Anticline area, with targets now named "Cooee Gap" and "Somerset". The prospectivity of this area is highlighted by the following observations:

  • It displays the strongest and highest magnitude nickel-in-soils geochemical anomalism within the Project. The image below drapes the geochemical nickel-in-soil data (at surface) over the 3D modelled Lunnon Basalt contact. The basalt contact is shaded darker grey to illustrate a 50 m wide buffer around any drill testing intercept; and
  • The area also records anomalous thicknesses of the hangingwall ultramafic rocks, interpreted to be due to either structural thickening or thick original komatiite flows. Both of these are of interest as possible indications of conceptual concealed structural or trough style mineralisation.
Gridded Nickel in Soils geochemical data (Ni ppm) combined with 3D interpreted contact between the Lunnon Basalt (in the footwall of potential nickel mineralisation) and the Kambalda Ultramafic in the hangingwall

The Company’s current interpretation indicates that there are significant expanses of the key target nickel contact positioned directly below this highly anomalous Cooee Anticline area and it thus ranks highly and will be aggressively explored, initially with strategically placed “framework” drill holes to better refine the 3D geological model.

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