Estrella Resources Limited (ASX: ESR) continues to obtain high-grade results over good widths from below the Spargoville 5A Nickel Mine in Western Australia.
HIGHLIGHTS
High-grade results over good widths continue to be returned from below the Spargoville 5A Nickel Mine:
- SPDD018 – 6.80m @ 4.40% Ni from 66.2m including 1.76m @ 10.21% Ni
- SPDD017 – 4.05m @ 3.05% Ni from 76.9m including 1.28m @ 7.28% Ni
- SPDD016 – 3.0m @ 1.15% Ni from 23.3m including 2.0m @ 1.23% Ni
- SPDD015 – 19.0m @ 0.74% Ni from 36m including 3.3m @ 1.09% Ni
With the second last batch of assays returned from the laboratory confirming good mining widths and high grades below the 5A Open Pit’s southern and central sections, preparations to produce an updated Mineral Resource are well underway.
The resource update is expected to be completed around three weeks after the receipt of final assays. Significant delays in assay returns are still evident in the minerals industry with standard assay returns taking up to 70 days, this will have flow on effects to the completion of the company’s DFS which we are now hopeful of completing prior the end of this calendar year.
The first set of XRD results have been received which confirm the mineralogy of the upper transitional (violarite dominated) zone. With these results beginning to arrive thecompany can now progress the required metallurgical test work it needs to quantify nickel, copper and cobalt recoveries expected during mining.
As expected, we continue to see very high-grade assays returned from the recent confirmation diamond drilling of the 5A nickel deposit,” Managing Director, Chris Daws, said.
“Planning for the extraction of the bulk sample has progressed significantly and I look forward to updating shareholders on how, where and when we are able to deliver these valuable nickel tonnes for processing as the company steps towards a profitable nickel operation.
“Outlook for nickel prices continue to look very favourable and now couldn’t be a better time to plan and develop a nickel mining operation.”
The removal of drill water from the base of the open pit is nearing completion and is expected to take another 10 days. Once this has been completed, pit-floor clean-up and preparations for the removal of the bulk sample will commence.
The bulk sample is expected to be completed in October. With the completion of the Goldfields-Esperance Highway upgrade, the Main Roads Contractor has handed over control of key infrastructure to Estrella. This includes a one million litre lined and fenced dam (turkey’s nest) at the Andrews Mine and a cleared, 5-acre pad at the 5B Nickel Mine.
Both these are critical infrastructure that enable the fast-tracking of the bulk sample acquisition in October.
