Auroch Resources nabs more ground over nickel-rich greenstone belt
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Special Report: Auroch Resources (ASX:AOU) has expanded its footprint in the “nickel-enriched” Norseman-Wiluna Greenstone Belt in WA, with seven new drill targets already identified by the company.
Explorer Auroch is acquiring up to 70 per cent in four tenements covering 217sqkm that it considers to be highly prospective for both gold and nickel-copper sulphides from Jindalee Resources (ASX:JRL).
Importantly, Auroch has already identified several drill-ready targets in the new tenement package.
“The four tenements have great nickel sulphide potential, and the walk-up drill targets add to our existing pipeline of highly-prospective drill-ready targets at our Saints and Leinster nickel projects,” managing director Aidan Platel said.
This includes the drill-ready Firefly prospect, where shallow intersections of elevated nickel and copper were never followed up by deeper drilling.
Besides the nickel potential, all four tenements have the potential to host gold deposits given their proximity to historical and operating gold mines, such as Saracen’s Thunderbox and Bannockburn mines and Gold Field’s Agnew and Lawlers mines.
The company will assess this gold potential as part of its exploration strategy, Platel added.
“The diamond drilling campaign at Saints is continuing, and with our growing number of quality drill targets we look forward to ramping up our exploration programs even further,” he says.
Auroch plans to review all available geochemical and geophysical data, producing a structural interpretation of the newly-acquired ground in order to define drill targets.
The company is currently carrying out diamond drilling targeting strong down-hole electromagnetic (EM) conductors within the T2 and St Andrews channel targets at the Saints nickel project.
The T2 conductor is very strong, typical of well-developed sulphides, while assays from the RC drilling confirmed the T2 channel boast the right geological characteristics to host significant nickel sulphides.
The St Andrews’ conductors sit below the known high-grade massive nickel sulphide mineralisation that lies in the hanging wall and is included in the current resource of 1.05 million tonnes grading 2 per cent nickel for 21,400 tonnes of contained nickel.
Auroch will pay Jindalee $50,000 in cash immediately and a further $50,000 cash on completion of all earn-in commitments.
It must spend $500,000 on exploration across the four tenements over a three-year period, including $100,000 in the first 12 months, to earn the 70 per cent ownership. Jindalee will then be free-carried until a decision to mine.
The tenements are between 30km and 60km southwest of Leinster and are well accessed by existing shire roads and station tracks. They are also close to the Kalgoorlie gas pipeline and operating nickel mines of Leinster.
This story was developed in collaboration with Auroch Minerals, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.