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Junior explorer Mithril Resources says it’s actually happy its partner has decided to bail out of a project in Western Australia because it now has complete control over the 7km nickel target.

Partner Chesser Resources (ASX:CHZ) told investors it wants to focus on its gold projects in Senegal, where it has uncovered a 5km long gold trend.

The joint venture covered certain tenements within a project called Kurnalpi – specifically the southern end of the project, which hosts an ultramafic trend.

Ultramafic is used to describe igneous rocks that are usually greater than 90 per cent mafic minerals and low silica and potassium content.

“Significantly, their withdrawal from the southern end of that ultramafic belt gives us a 100 per cent ownership over the entire 7km,” managing director David Hutton told Stockhead.

Investors liked the news, pushing shares up over 7 per cent to 1.5c on Thursday morning.

Mithril Resources (ASX:MTH) shares over the past year.
Mithril Resources (ASX:MTH) shares over the past year.

“The withdrawal creates an opportunity for Mithril because our work has shown that that ultramafic belt actually contains nickel sulphide mineralisation,” Mr Hutton explained.

“That’s a new observation that we’ve made. We have got a number of really compelling exploration targets that we’re going to start following up with drilling and [electromagnetic] geophysics late June/early July.”

Mithril does not plan to bring in another joint venture partner and is in the midst of a capital raising to fund its nickel hunt.