Estrella Resources Limited (ASX: ESR) is fast-tracking potential development of its Spargoville Nickel Project to take advantage of strong nickel prices.
The company today announced the maiden Mineral Resource for the 5A nickel sulphide deposit at the Spargoville Nickel Project which is located near Kambalda in Western Australia.
The initial 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.
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 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.
CEO Chris Daws said that importantly 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.
Mr Daws said that in light of the current strength in the nickel market and the positive outlook, the company will undertake steps towards commercialisation of the 5A nickel sulphide Mineral Resource.
The 5A nickel sulphide deposit is one of a number of significant nickel sulphide occurrences that make up the company’s 100% owned Spargoville Nickel Project which was purchased at a time when nickel projects were not in favour and nickel prices were much lower.
In A$ terms the nickel price has risen over 50% this calendar year and currently worth over A$24,000 per tonne.
It is pleasing to be able to report to shareholders our maiden nickel sulphide Mineral Resource at 5A and comes on the back of previous exceptional nickel sulphide assays,” Mr Daws said.
“We are keen to capitalise on this near-surface resource especially now the nickel market is strengthening, and the outlook for the metal continues to be positive.
“Recent news that the Indonesian Government plan to bring forward its ban on its nickel exports by two years is clearly having an impact, as evident by the recent dramatic drawdowns of nickel stocks from the London Metal Exchange by the world’s biggest end users.”