Fun DMC: Nickel trail runs hot at Ravensthorpe
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DMC’s search for nickel sulphides at its Ravensthorpe project has taken a step forward with the delineation of a number of high priority conductivity anomalies.
The company’s recent 552 line kilometre high-resolution, helicopter-borne electromagnetic (EM) survey identified the anomalies, which are associated with magnetic features consistent with buried komatiite ultramafic units.
Komatiite-hosted nickel sulphide deposits are the main source of developed nickel-sulphide mines in Western Australia due to their well understood geochemistry, formation, and high-grade sulphide enrichment.
DMC Mining (ASX:DMM) will now seek to verify these anomalies with geochemistry and ground geophysical surveys, results from which will then be used to guide diamond drilling for potential nickel sulphide mineralisation.
“We are very excited by the number of high priority nickel sulphide targets identified from the survey. The results highlight the tremendous potential of this project,” executive chairman David Sumich said.
The company noted that while the survey was impacted by conductive paleodrainage channel systems and younger Eocene marine onlap sediments that obscure the bedrock conductivity in various places, it still outlined two priority one anomalies and five priority two anomalies.
These were chosen by their conductivity and magnetic characteristics to be potentially bedrock-sourced and associated with komatiite ultramafic units.
Additionally, a number of lower priority anomalies were identified which had less defined anomalism – or anomalism that might not relate to potential bedrock systems – but there’s something down there too.
Longside the main strikers these results clearly highlight the prospectivity of its 62sqkm tenure and its location bounding FQM and POSCO’s massive Ravensthorpe nickel laterite mine on WA’s south coast, a multi-billion dollar project built by BHP just over a decade ago with decades of nickel resources in the ground.
It is also immediately south of the RAV8 nickel sulphide mine owned by ASX-Listed NickelSearch (ASX:NIS), where Tectonic Resources mined 468,000t at a super high-grade of 3.45% between 2000-2005.
The EL74/669 exploration licence has at least 15km of the strike length of the Bandalup ultramafics, a collection of host rocks known for holding Kambalda style komatiitic nickel deposits, and is very well serviced by roads, power, and other necessary mining infrastructure.
This article was developed in collaboration with DMC Mining, 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.