Mithril Resources (ASX: MTH) has discovered bedrock conductors in proximity to historical thick intersections containing nickel and cobalt mineralisation at its 100%-owned Kurnalpi prospect.
After reviewing historical drill data at the project which is less than 70km east of Kalgoorlie in Western Australia, Mithril identified several thick intersections with nickel and cobalt mineralisation.
A recent electromagnetic geophysical survey across the prospect area revealed numerous bedrock conductors adjacent to, or along strike from the historical intersections which include: 42m grading 1.25% nickel, 0.07% cobalt from near surface, and 19m grading 1.08% nickel and 0.07% cobalt.
Both of these drill holes include shorter higher-grade intervals containing cobalt of 0.20% and 0.11% respectively.
To-date, historical drilling data has yielded up to 2.04% nickel and 0.33% cobalt and revealed the presence of copper grading 0.28%.
Meanwhile, Mithril has reviewed historic aeromagnetic and drilling data to the prospect’s south and identified a new nickel and cobalt target to follow up when drilling begins next week.
In addition to Kurnalpi, Mithril is undertaking zinc target generation at its Billy Hills in WA’s west Kimberley region and copper and zinc exploration at its Southern Target Area project in WA’s mid-west.
Billy Hills adjoins the Pillara zinc mine which operated up to 2008. Drilling at Pillara West returned intersections such as 19.1m grading 7.60% zinc, 2.10% lead, 17 grams per tonne silver, with an 11.9m interval containing 10.40% zinc, 3.20% lead and 25g/t silver.
Additionally, diamond drilling intersected thick mineralisation on ground Mithril now owns.
These intersections included 32.20m grading 1.89% zinc, 0.33% lead, 3g/t silver and 16m grading 2.12% zinc, 0.03% lead and 3g/t silver.
The drill holes also include shorter intervals comprising up to 9.20% zinc, 1.75% lead and 4g/t silver.
A field work program across its zinc landholding in the Kimberley is planned for mid-year.
After an early morning run that saw Mithril’s share price peak at A$0.046 – a 24% premium to yesterday’s close of A$0.037, the company’s stock settled at A$0.041 in early afternoon trade – up more than 10%.