Estrella Resources Limited (ASX: ESR) has received “exceptional” first assays from the company’s Spargoville Nickel Project, located approximately 20km Southwest of Kambalda, Western Australia.
With these initial results, indications for Estrella to be transitioning to producer status in the near-term from the 5A ore body look very positive,” Managing Director, Chris Daws, said.
“The high- grade of the massive sulphide is exceptional and is common in this type of nickel system, typical of Kambalda style komatiites. Our team is working double-time to put the 5A mine back into production, the first step towards unlocking the potential of the Spargoville near-mine portfolio that Estrella currently controls.”
The first hole in the programme (SPDD002) returned: 3.4m @ 8.2% Ni, 0.6% Cu, 0.2% Co, 21.5% S, from 65.16m down hole, Including 2.66m @ 10.34% Ni, 0.79% Cu, 2195 ppm Co, 27.1% S, from 65.64m down hole.
An additional oxide zone located within the hosting komatiite was identified to the east of the main basal contact. This zone occurs as a result of a subsequent, mineralised komatiite flow which lies on top of the main, basal flow.
The company will sample this additional horizon in all drillholes. If this oxide material meets a reasonable grade threshold it may be included in the 5A Resource, as it will satisfy all JORC2012 requirements and specifically the reasonable prospect of eventual economic extraction.
Additional processing pathways for this material are being explored which ultimately depend on the grade of this material.
The company has received approvals to obtain a bulk metallurgical sample for third party treatment. Previous test work has indicated that the transitional material is suitable for extraction by non-traditional methods and a larger sample, approximately 2,000 – 4,000 tonnes, will give a greater confidence for the parties to commit to full-scale mining and processing of the 5A Resource.
It is expected the bulk metallurgical sample will be extracted shortly and provide a small cash flow from being processed.