Metal Hawk has seen early results from a recent air-core drilling program back up its geological modelling for the Commodore nickel sulphide discovery. The work at the mineralised komatiite system defined several nickel zones matching features mapped in a moving loop electromagnetic survey last month.
Even though half the assays are still to be tested, the company is wasting no time and has started 3000 metres of RC drilling to bedrock-test priority nickel sulphide targets at its discovery near Kalgoorlie in Western Australia.
RC drilling there in September last year confirmed the potential for a significant mineralised komatiite system at the company’s Berehaven project, with Metal Hawk’s maiden program intersecting 5.9 per cent nickel.
The news sent the Metal Hawk share price rocketing from $0.185 to $0.76 on the back of the wholly-owned Commodore discovery.
Metal Hawk is using AC drilling to define the ultramafic stratigraphy trending through the western half of the underexplored project area. The shallow drilling program is testing for elevated nickel values in the weathered horizon, possibly indicating the presence of primary nickel sulphides in the fresh rock below.
From the assay results received to date, the company said it has defined several zones of strongly anomalous nickel, some are coincident with modelled conductors from the moving loop electromagnetic survey carried out in February along strike from Commodore.
Sample drilling gave strong geochemical results above Metal Hawk’s 2km modelled zone located approximately 1.5km northwest of the Commodore orebody.
Metal Hawk Managing Director, Will Belbin said: “The AC drilling has given us our first look at the geology along strike from Commodore and it clearly supports our interpretation, giving us more confidence with our targeting. With the new multi-element geochemical data, we are refining and prioritising this next stage of deeper RC drilling as we bedrock-test these quality EM targets.”
Elsewhere in its portfolio, the company and its JV partner, Western Areas, have significantly ramped up exploration with the maiden diamond drill campaign at the duo’s Kanowna East project near Kalgoorlie intersecting 220m of nickel-bearing ultramafic rocks near the well-endowed Poseidon owned Silver Swan nickel mine that has underground head grades of 9.5 per cent nickel.
The billion-dollar market capped Western Areas has a 75 per cent earn in agreement by spending $7 million over five years across Metal Hawk’s Kanowna East, Emu Lake and Fraser South projects.
Kanowna East sits approximately 10km south of the high-grade Silver Swan nickel mine and Metal Hawk says it potentially represents the southern extension of the mineralised ultramafic corridor.
Work in the past 18 months by Western Areas has led to its belief the sparse drill testing of the 9km corridor of ultramafic rocks represents a blue sky element at the project.
Under the terms of the deal, Metal Hawk keeps 25 per cent of any nickel projects whilst retaining 100 per cent of the gold rights.
The company had $4.5 million in the bank at the end of the December quarter.
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