Australia Mines kicks off drilling at Broken Hill
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Australian Mines has launched a five-hole follow-up drill program to test downhole electromagnetic anomalies at its Broken Hill project in New South Wales.
The DHEM anomalies were identified during the company’s successful October 2020 reverse circulation drill program, which intersected the same host geology as the nearby supergiant lead-zinc-silver orebody at Broken Hill.
Australian Mines (ASX:AUZ) notes that the anomalies point to off-hole conductive sources that are suggestive of sulphide mineralisation.
It added the positive results to date suggest the presence of several encouraging Broken Hill style lead-zinc-silver targets at the project.
This is coupled with the Broken Hill project being located along strike of and hosting the same geology as the supergiant deposit.
While the company is focused on advancing and developing its flagship Sconi nickel-cobalt-manganese project in Queensland, the Broken Hill drilling highlights its commitment to unlock the potential of its other projects.
The advanced Sconi project about 250km inland from Townsville has an ore reserve of 57.3Mt and is the subject of an enhanced bankable feasibility study.
This work has flagged that the project will be in the lowest cost quartile of battery material producers globally.
Pilot production of battery grade nickel sulphate and cobalt sulphate has been ongoing since 2018 along with battery grade manganese sulphate since 2020.
Last month, Australian Mines said it continued to progress offtake negotiations for the project with a range of potential partners, including global car and battery manufacturers.
It is also working to satisfy the due diligence requirements for these ongoing offtake discussions to progress towards draft formal contracts.
This article was developed in collaboration with Australian Mines, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.