Golden Mile shares soar 95pc on news of ‘spectacular’ nickel at Quicksilver

Diamond drilling has yielded the highest-ever nickel grades at Golden Mile’s Quicksilver nickel-cobalt deposit near Lake Grace, Western Australia.

The intercepts of up to 4.14% nickel and 0.421% cobalt within a broader interval of 28m at 2.34% nickel and 0.109% cobalt from a down-hole depth of 32m, which is itself within a very wide intercept of 49m at 1.74% nickel from 30m in hole 23QDD008, sent shares in the company soaring 112.5% to 4.7c this morning.

Other notable results from the PQ diamond drilling for the Stage 3 metallurgical testwork for the Quicksilver project are 61m at 0.61% nickel from 20m including 1m at 1.22% nickel from 77m (23QDD006) and 47m at 0.74% nickel from 18m including 3m at 1.15% nickel from 54m (23QDD002).

Golden Mile Resources (ASX:G88) noted that the intercepts indicated the potential for direct transportation and shipping of high-grade zones of the orebody without beneficiation.

It added that high-grade nickel and cobalt in the oxide zone might be an indication of potential disseminated nickel mineralisation within the untested primary zone.

“These are spectacular intersections and the highest nickel grade we have ever encountered at Quicksilver,” managing director Damon Dormer said.

“The results indicate that we have a significantly higher-grade zone within the overall Resource with the potential of disseminated nickel mineralisation within the untested primary zone.

“This may provide an opportunity for direct transportation and shipping of high-grade zones of the orebody to provide early cash flow while constructing the beneficiation plant and accelerating project timelines.”

Assay results

The metallurgical diamond drilling program of eight holes totalling 548.9m was designed to deliver a bulk sample for the Stage 3 metallurgical testwork program.

Assaying returned wide zones of nickel mineralisation, including high-grade nickel and cobalt, hosted within the upper and lower saprolite oxide zones.

Priority was given to assaying of the samples for nickel, cobalt and copper with results for rare earth elements and scandium still pending.

Golden Mile highlighted the tenor of the high-grade nickel and cobalt encountered in hole 23QDD008, noting that it is rare for oxide nickel mineralisation and may be an indication of higher concentrations of primary nickel in the original protolith rock from which the oxide was derived.

It noted that this could be explained by the presence of disseminated nickel sulphide accumulations in the original protolith that may still be occurring at depth.

Importantly, these near surface disseminated nickel sulphide accumulations can be an economic source of nickel provided there is sufficient tonnes and grade.

Upcoming activity

The assays to date have triggered additional activities into the Works program for Quicksilver.

Additional assaying has been incorporated into the Phase 2 – Assays Ancillary programme targeting additional elements, supporting the potential of disseminated nickel at depth.

Additionally, Golden Mile will add extra holes to the drill program it is designing to test for rare earths mineralisation as well as potential primary disseminated nickel mineralisation below the oxide resource as they are located within the same area.

This program will also infill around the spectacular hole 23QDD008 as the high-grade mineralisation extends past the lower boundary of the current resource.

This article was developed in collaboration with Golden Mile Resources, 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.