Mandrake gets licence to hunt for its very own Julimar

Special Report: Mandrake Resources is poised to get on with the job of proving whether it can replicate the discovery success of Chalice Mining following the receipt of a critical exploration licence.

Mandrake (ASX: MAN) told investors on Wednesday it had been granted exploration licence 70/5345 covering a 140km²plot of land about an hour’s drive north-east of Perth in Western Australia.

The Jimperding Project,as the landholding is known, lies approximately 30km east of – and in the same geological terrane as – the Julimar nickel-copper-platinum group elements (PGEs) discovery that has propelled Chalice to a $1.3 billion market value.

Mandrake struck a farm-in agreement with the private owner of the Jimperding Project in mid-April shortly after the discovery of Julimar and has subsequently negotiated to acquire 100% of the asset.

Since the farm-in was agreed, Mandrake has worked primarily on proving up the exciting Newleyine prospect, which will be the initial focus of drilling.

“The grant of the EL is an important step as we work towards a drilling programme at Newleyine prospect,” managing director James Allchurch said.

Historical drilling at Newleyine confirmed widespread nickel-copper-iron mineralisation, but assays were never conducted for PGEs.

In July, Newleyine produced rock chip samples up to 0.36 g/t palladium, 0.27 g/t platinum, 0.65 g/t nickel and 0.19% copper, suggesting the presence of Julimar-style mineralisation.

Mandrake has been further encouraged by the identification of a classic magnetic “bullseye” coincident with high grade rock chip and anomalous nickel concentrations from historical drilling.

Within this bullseye, a fixed loop electromagnetic survey identified three discrete bedrock anomalies potentially indicating the presence of massive sulphide mineralisation.

The company said these anomalies “demand drill testing”.

While Newleyine will be drilled first, an airborne electromagnetic survey is scheduled to be flown over the entire project area starting from next week with a view to generating additional targets prospective for Julimar-style mineralisation.

Regional aeromagnetic image showing Jimperding’s proximity to Chalice Mining’s Julimar Ni-Cu-PGE discovery

In March this year, the first hole drilled at Julimar produced a stunning intercept of 19m at 2.59% nickel, 1.04% copper, 8.37 g/t palladium and 1.11 g/t platinum from 48m.

Observers have since suggested the discovery will lead to the development of a new nickel-copper-PGE province on the edge of the Perth metropolitan area.

This story was developed in collaboration with Mandrake Resources, 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.