NickelX hits massive sulphides in first hole of maiden program at Cosmos South
NickelX’s first diamond hole drilled at its Cosmos South nickel project has hit a 153m wide zone of massive sulphides.
NickelX (ASX: NKL) has intersected significant massive sulphides in the first hole of a maiden diamond drilling program at the Cosmos South nickel project in Western Australia.
The company encountered a 153-metre-wide zone with multiple horizons of stringer, vein, semi-massive and massive breccia sulphide up to 20m core width between downhole depths from 334m to 487m.
The hole was completed at 492.5m in mafic volcanic sediments.
The sulphides encountered comprise pyrrhotite-marcasite/pyrite and lesser chalcopyrite as breccia matrix surrounding lithic fragments contained within quartz veins and broad zones of massive sulphide and quartz-breccia hosted within ultramafic and mafic volcanics and volcanogenic sediments.
Portable x-ray fluorescence did not detect nickel in the sulphide assemblages; however, the host geology and sulphide composition and sulphide-quartz breccia matrix habit encountered are believed to be similar to the host geology and mineralisation at the nearby Bellevue gold mine owned by Bellevue Gold (ASX: BGL).
NickelX said the massive sulphide intersected is likely to be the source of a highly conductive electromagnetic response at the project’s CS1 target and may account for the magnetic anomaly due to its massive pyrrhotite content.
The company said the sulphide-bearing intervals will also be assayed for gold.
Maiden drilling program
The Cosmos South project is located 10km south of the high-grade Cosmos nickel operations owned by IGO (ASX: IGO) and 20km north of the world-class Leinster nickel operations owned by BHP-Nickel West (ASX: BHP).
Maiden drilling commenced in October with a 1,500m program comprising up to six holes focusing on fixed loop electromagnetic (FLEM) and moving loop electromagnetic (MLEM) conductors at CS1.
The conductors are coincident with strong magnetic anomalies identified from a recent close-spaced high-resolution survey.
Drilling is helping to identify buried channelised komatiite volcanic rocks prospective for nickel sulphide mineralisation.
Cosmos South acquisition
Cosmos South was acquired in March after NickelX notified private vendor MG Resources that it would proceed with a binding term sheet signed last November.
The company has committed to spending $500,000 on exploration over 24 months and issuing MG with $300,000 worth of new NickelX shares over two tranches.
Despite being surrounded by major nickel miners, Cosmos South has been subject to very limited past exploration.