The Spargoville Project is located located approximately 20km South West of Kambalda, Western Australia. Estrella Resources acquired the project, through the purchase of WA Nickel Pty Ltd. As a result of this purchase, the Company received a large database of drillhole, surface sampling and underground channel sampling with the acquisition.
The surrounding area, including nearby mines, along with advances in modern geophysical exploration and metallurgical processing methods, provide Estrella Resources with broad exploration opportunities and targets to follow-up.
The Spargoville project was first discovered by Selcast Exploration in the late 1960s, since then 1A, 5A, 5B and 5D deposits have been discovered and developed. The primary interest is 5A, where a high-grade body of nickel, copper, and cobalt is located directly below the floor of the open pit mine there, within 30m of the natural ground surface.
The drilling by Estrella Resources at 5A has exceeded all expectations – with spectacular high grade nickel sulphide intercepts with accompanying polymetallic mineralisation. The drilling results have been consistently higher than previous drilling expeditions – with elevated platinum group and cobalt mineralisation.
With significant enhances in metallurgical technology, Estrella Resources is excited by the elevated results, which have the potential to substantially enhance the economics of the project. Recent cross-examination of historic geophysical datasets has also revealed the presence of several high priority EM targets, which will be targeted by future drilling.
5A October 2019 Mineral Resource Estimate (0.5% Nickel Cut-off)
The maiden Mineral Resource stands at 127,000 tonnes at 1.9% Ni and 0.15% Cu for a contained nickel metal inventory of 2,370 tonnes and is reported in compliance with the JORC Code (2012). The Mineral Resource is shallow with the majority of nickel within 100m of surface and amendable to open pit mining. The maiden Mineral Resource follows a detailed assessment of historic drilling and the inclusion of significant high grade nickel sulphide drilling results achieved by the Company (see ASX release 18 December 2018) which included;
- 15m at 10.45% Ni, 0.78% Cu, 0.20% Co, 0.87g/t Pb, and 1.15g/t Pt from 20m
- 5m at 11.32% Ni, 0.54% Cu, 0.21% Co, 0.42g/t Pd, and 0.22g/t Pt from 61m
- 3m at 12.90% Ni, 1.37% Cu, 0.29% Co, 1.86g/t Pd, and 0.67g/t Pt from 69m
Over 65% of the contained nickel tonnes in the 5A maiden Mineral Resource have been classified as Indicated with there being sufficient drill density and understanding of the mineralisation to satisfy this classification. The deposit is open at depth below the high grade nickel sulphide drill intercepts which allows potential for an increase in the current resource with further drilling.
Estrella Resources has established the potential for further work, including follow up drilling, metallurgical test work and additional scoping studies. There is also potential for extensions in the down plunge position to the current mineralisation.
The drill spacing is currently considered adequate for the current level of interrogation of the project.