Estrella Resources Limited (ASX: ESR) has received further positive assays from the company’s Spargoville Nickel Project, located approximately 20km South West of Kambalda, Western Australia.
Diamond drillhole SPDD003 intersected very high-grade Transitional mineralisation including 0.6m @ 11.00%Ni, 48m vertically below the open pit.
Results were also received for SPDD012 which intersected both Oxide and Transitional mineralisation. The total intersection was 7.45m @ 1.32%Ni, including an Oxide-Transitional zone 2.22m grading 2.42%Ni.
Managing Director, Chris Daws, said assays received back from the laboratory continue to confirm visual estimate expectations.
These latest high-grade assays show visual estimate widths are consistent with historical results and further supports our view that the 5A ore body has the potential to be brought into production in the near-term,” Mr Daws said.
“The team are accelerating towards kicking off full scale mining of the 5A nickel resource which remains on target in the 1st Quarter of 2023. It’s all systems go as Estrella seeks to bring Spargoville back into production and I look forward to updating the market every step of the way.”
With the metallurgical drilling almost complete, the company has noted that the Oxide and Transitional Mineralisation boundaries appear to have been modelled higher than the current drilling suggests.
A revised Mineral Resource Estimate will be calculated which will then feed into ore reserve and pit optimisation modelling. Submission of mine plans will follow shortly thereafter with the company on track to commence full scale mining of the 5A nickel sulphide resource in the 1st Quarter of 2023 subject to positive DFS outcomes, statutory approvals and financing.
SQ-XRF will be conducted on select samples to ascertain the quantity and type of nickel mineral species present ahead of metallurgical testing.
Metallurgical testing will occur in two concurrent streams, SQ-XRF and flotation testing for high-sulphide transitional and fresh mineralisation, and a trial parcel to be processed at a third-party Western Australian facility for the low-sulphur Transitional and Oxide mineralisation.
