Estrella Resources Limited (ASX: ESR) has launched an independent Sales Process for the Nickel Rights over its Spargoville Project located approximately 25km West of Kambalda, Western Australia.
The Sales Process, which is to be initiated following receipt of a number of unsolicited offers for the Spargoville Nickel Rights, is being managed by Neil Hutchison, Managing Director of Geolithic Geological Services who previously ran the company’s highly successful Munda Gold sale in 2020.
Spargoville Overview
The Spargoville project area was first discovered by Selcast Exploration in the late 1960s. Since then, 1A, 5A, 5B, and 5D deposits have been discovered and developed. All these mines have remnant mineralisation left behind.
Estrella acquired Spargoville via the purchase of WA Nickel Pty Ltd. The mines and the surrounding areas provided the Company with many exploration targets to follow-up considering advances in modern geophysical exploration and metallurgical processing methods.
In 2018, Estrella completed its maiden drilling program at Spargoville, targeting high grade nickel mineralisation directly beneath the 5A open pit and an EM target, M15/96-C1, between the 5A and 5B mines.
Drilling beneath the 5A pit floor returned spectacular high-grade nickel sulphide intercepts with accompanying polymetallic mineralisation.
High-grade results from the maiden drilling programme included:
- 15m at 10.45% Ni, 0.78% Cu, 0.20% Co, 0.87g/t Pb, and 1.15g/t Pt from 20m in KWC0004
- 5m at 11.32% Ni, 0.54% Cu, 0.21% Co, 0.42g/t Pd, and 0.22g/t Pt from 61m in KWC0001
- 3m at 12.90% Ni, 1.37% Cu, 0.29% Co, 1.86g/t Pd, and 0.67g/t Pt from 69m in KWC0002
Estrella Managing Director Chris Daws said the maiden drilling campaign exceeded the company’s expectations at 5A with assay results returned consistently higher than historic drilling.
With a number of unsolicited offers being received and with our exploration programmes solely focused on unlocking the Carr Boyd Nickel Project due to exceptional results being achieved there, Estrella have decided to commence the sales process for the nickel rights over the Spargoville Project,” Mr Daws said.
“As evidenced by assay results from our maiden drilling campaign in 2018, Spargoville has proven to contain high-grade nickel sulphide and I look forward to updating investors as the sales process for this project unfolds.”
