Nickel bearing sulphides intersected at Hanns Camp

RNS Number : 7343Z

Strategic Minerals PLC

31 May 2016

 

31 May 2016

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Nickel bearing sulphides intersected at Hanns Camp

The Board of Strategic Minerals PLC (AIM: SML; USOTC; SMCDY) is pleased to announce that the first drill hole, HC001, at its Hanns Camp project, has intersected nickel sulphides. The sulphides present include Pentlandite and exist in a low level disseminated form at approximately 286m downhole.

·     Nickel sulphides located: Pentlandite intersected in first Hanns Camp drill hole

·     XRF analysis (x-ray fluorescence): Characteristics consistent with major West Australian Yilgan nickel deposits

·     Exploration concept validated: Extensive high-Mg (magnesium), cumulate texture ultramafics present

·     Vectoring sulphide source: Additional holes and downhole electromagnetic survey to follow

XRF analysis has yielded anomalous nickel levels of 1.2%, which compare positively to the 0.2-0.3% background nickel of the host ultramafic unit. To further validate the exploration concept, the majority of the ultramafics intercepted have been high-Mg and composed of cumulate texture olivine.  These are all key characteristics of komatiite lava flow environments, key hosts to many of the major West Australian Yilgarn nickel deposits.

This is the first drill hole of the maiden Hanns Camp programme and is testing the Forrest target.  The drill hole is nearing completion and once it reaches the footwall of the ultramafic unit a downhole electromagnetic ("EM") survey will be conducted.  This will further assist with better identifying any potential nickel sulphide accumulations, that these disseminated sulphides may relate to.

The project manager believes the drill hole deviated below the EM conductor target, and the planned downhole EM will help confirm this and more accurately pinpoint the conductor.  Once established, this location may be revisited to drill an additional hole aimed at intercepting any further defined EM conductors.

Following completion of HC001, the drill rig will move onto the second target; Stirling, to complete the second drill hole of the programme.

All reported nickel values were determined from 'point' handheld XRF analysis using an Olympus Innov-X Spectrum Analyser.  As a priority, the sulphide containing drill core will be sampled and submitted for laboratory analysis.

The samples have already been dispatched for analysis of the three RC (reverse circulation) pre-collars, from Forrest, Stirling and Canning.  The analysis of the RC pre-collars will assist in identifying the likely location of the EM target especially when combined with the diamond drilling observations. Further, the downhole EM data will help to vector towards the source.

Hanns Camp forms part of the Laverton Project, of which Strategic Minerals recently secured an interest via its acquisition of up to a 50% of Central Australian Rare Earths Pty Ltd ("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:

"The first hole validation of the exploration concept is pleasing given the work that has gone into getting to this point. While it is early yet, the XRF analysis is encouraging and is likely to see CARE adapt its drilling programme to hone in on the sulphide source. However, a true understanding of the commercial potential of the area will not really be available until lab results are received.

"Both the Company and its partner in CARE, Rarus Limited, are excited by the drilling to date and look forward to working closely together in identifying what we hope will be a significant nickel sulphide find."

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. In May 2016, the Company also entered arrangements to buy into 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 this announcement of the matters based on his information in the form and context in which it appears.

 

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