NickelX identifies strong nickel anomalies at Cosmos South project
NickelX’s new Cosmos South licence is 20km north of BHP’s Leinster nickel operation and only 10km south of IGO’s recently acquired Cosmos nickel mine.
Geophysical drone surveys conducted by NickelX (ASX: NKL) across the newly-acquired Cosmos South project in Western Australia have confirmed the presence of strong conductors associated with prominent magnetic features prospective for nickel mineralisation.
Significant anomalies were defined from close-spaced moving and fixed loop electromagnetic surveys and are believed to be consistent with buried channelised komatiite volcanic rocks.
The surveys were completed on 25 metre-spaced east-to-west traverses at a height of approximately 30m above ground and offered better resolution than data from previous surveys which was acquired using 200m line spacing at 80m above ground.
The new work aimed to better define the magnetic characteristics of strata associated with the identified anomalies and better map subsurface structures and lithology based on the results.
The existing data was determined to have insufficient resolution to map local variations in the interpreted buried komatiite vocanic lithologies which may represent channelised environments within the larger komatiite sequence.
These channelised volcanic flows are deemed critical to formation of nickel sulphide deposits.
Adverse weather
NickelX said the drone surveys were flown across approximately 75% of the project area, with adverse weather conditions impacting work in the southern portion of the tenement.
The data delineated a north-northwest anomaly trend through the centre of the project and the refined resolution showed a substantial thickening of the magnetic strata and an increase in the magnetic anomaly intensity associated with the northern part of the modelled conductivity anomalies.
“Such thickening of the magnetic strata accompanied by an increase in magnetic anomaly intensity is consistent with channelised ultramafic komatiite systems where the thickened sequence of olivine cumulates in the channel environment have been serpentinised, leading to growth of substantial secondary magnetite,” the company said.
“Such magnetic responses are considered key exploration criteria for komatiite channel associated nickel sulphide systems such as at Kambalda, Leinster and Cosmos.”
NickelX said it planned to complete the remainder of the survey “as soon as possible”.
Drilling permits and contracts are being finalised to commence exploration of high priority targets.
Cosmos South acquisition
Last month, NickelX received shareholder approval for the acquisition of Cosmos South from private vendor MG Resources Pty Ltd.
Under the terms of the deal, NickelX will earn an undivided 100% interest in the project by spending a minimum $500,000 on exploration over a 24-month period.
It is required to make milestone payments totalling $150,000 in NickelX shares at intervals of 12 months and 24 months from the date of the agreement.