Further nickel sulphides intersected at Hanns Camp

RNS Number : 5625A

Strategic Minerals PLC

08 June 2016

 

8 June 2016

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Further nickel sulphides intersected at Hanns Camp

Strategic Minerals PLC (AIM: SML; USOTC; SMCDY), the multi-minerals production, exploration and development company, is pleased to announce an update on the drilling programme being undertaken by Central Australian Rare Earths Pty Ltd ("CARE") at the Hanns Camp project. Strategic Minerals has a 25.5% interest in CARE, with the right to acquire up to a 50% interest. 

Highlights:

·    Nickel sulphides intersected in HC003 at Hanns Camp

·    Two of the three targets have displayed nickel sulphides

·    All targets have featured extensive cumulate texture ultramafics

·    Project prospectivity greatly improved

The third drill hole, HC003, at CARE's Hanns Camp project has intersected nickel sulphides. The sulphides present include Pentlandite and exist in a low level disseminated form at approximately 125 metres downhole. XRF (x-ray fluorescence) analysis of HC003 has yielded nickel levels of up to 3.02%, considerably higher than that found in the first hole (HC001: 1.2% nickel) which was testing the Forrest target.  The nickel sulphides were observed at approximately 125.5 metres downhole, which correlates very well with the predicted 120 metre downhole position of the targeted electromagnetic ("EM") conductor. The occurrence of nickel sulphides in proximity of the targeted EM conductor is a strong indication that sulphides are responsible for the anomaly.

Due to the natural deviation of the drill hole, it is believed that HC003 has drilled below the EM conductor target, failing to penetrate its body, instead intersecting the surrounding area, characterised by disseminated sulphides.  Planned downhole EM for all holes will help CARE better define the EM conductors and establish any near misses.

HC003 is testing the Canning target, located in the centre of the Hanns Camp project, with Forrest to the North and Stirling to the South.  The hole is still in progress with completion expected in the next few days.

Before drilling the current hole the Stirling target was tested via drill hole HC002. Currently no nickel sulphides have been identified in this hole, but strong cumulate textures characterised the ultramafics. All three of the targets have been characterised by high-Mg (magnesium), olivine cumulate ultramafics, indicating that the unit in the area is likely a komatiite lava flow, the key environment for the Archaean nickel deposits of the Yilgarn.  This, combined with the presence of nickel sulphides, has further validated CARE's exploration concept and greatly improved the nickel prospectivity of the project area.

All reported nickel values were determined from 'point' handheld XRF analysis using an Olympus Innov-X Spectrum Analyser by a licenced user of field portable analysers, and should be considered preliminary in nature.  As a priority, the sulphide containing drill core will be sampled and submitted for laboratory analysis.

Hanns Camp forms part of the Laverton Project, of which Strategic Minerals recently secured an interest via its agreement to acquire up to a 50% of CARE.  Hanns Camp is located 250km north-east of the city of Kalgoorlie-Boulder, 12km north-east of the town of Laverton in the North-Eastern Goldfields region of Western Australia.  The prospect is easily accessible using existing tracks from Laverton, one of the main Goldfields towns.

A map of the region and the proposed drilling targets can be found on the Company's website under the CARE project section.

Strategic Mineral's Chairman, Alan Broome AM, said:

 "This second indication of the existence of nickel sulphide has significantly increased the prospectivity of the tenement for nickel.  The XRF analysis is encouraging. CARE is currently completing its drilling programme and, in conjunction with the downhole EM analysis, looks forward to honing in on the sulphide source. However, a true understanding of the commercial potential of the area will not really be available until lab results from the drilling are received and analysis of the downhole EM data is completed.

"The Company is encouraged by the further confirmation of nickel sulphide in this second intersection and the potential for a significant nickel sulphide discovery in the well-recognised Yilgarn Craton Nickel province in Western Australia."

For further information, please contact:

Strategic Minerals plc John Peters Managing Director	[phone]
Allenby Capital Limited Nominated Adviser and Joint Broker John Depasquale Jeremy Porter James Reeve	[phone]
Cornhill Capital Limited Joint Broker James Sheehan Colin Rowbury	[phone]
Yellow Jersey PR Financial PR Dominic Barretto Alistair de Kare-Silver	[phone]

Notes to Editors:

Strategic Minerals Plc is an AIM-quoted, diversified mineral development and production company with projects in the United States of America and Australia. The Company is focused on acquiring and developing cash generative, high quality projects which meet local market demand for commodities and utilising this cash flow to undertake value added exploration. 

In September 2011, Strategic Minerals purchased its first cash generating asset; the Cobre magnetite tailings dam project in New Mexico, USA which it brought into production in 2012 and which continues to provide a revenue stream for the Company. The portfolio was expanded in January 2016 with the acquisition of shares in Central Australian Rare Earths Pty Ltd, which holds tenements in Western Australia and the Northern Territory that are prospective for nickel sulphides and rare earths. Strategic Minerals has commenced drill-testing of the highest priority nickel sulphide targets within the tenements and has successfully intersected nickel sulphide. In May 2016, the Company also entered arrangements to buy up to 50% of the Redmoor tin/tungsten exploration project in Cornwall, UK.

Qualified Person's Statement

Cadre Geology and Mining principal geologist Ben Pollard, who is a Member of The Australasian Institute of Mining and Metallurgy, has reviewed and verified the information contained in this announcement. Mr Pollard has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and a Qualified Person as defined in the AIM Note for Mining and Oil & Gas Companies dated June 2009. Mr Pollard consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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