Estrella Resources Limited (ASX: ESR) has received assays for the final two resource and metallurgical diamond holes at the company’s Spargoville Nickel Project 5A Mine, located approximately 20km Southwest of Kambalda, Western Australia.
Both SPDD019 and SPDD020 returned very high grades from the northern and central portions of the deposit. With receipt of these assays, work on a new Resource Estimate can be finalised within a few weeks.
The results which Estrella has received from the Spargoville nickel project will permit the commencement of work on an updated Resource Estimation and I am very confident that the high-grade assays we have unearthed places us in a strong position to define a robust resource,” Managing Director Chris Daws said.
“The completion of drilling also allows the company to proceed with bulk sampling, de-risking the project from a resource as well as metallurgical perspective.
“Estrella has sought to broaden its focus to include the Spargoville project and the 5A nickel deposit precisely because it contains high-grade mineralisation at a time when the price and underlying fundamentals of nickel demand are strong.
“I am exceptionally pleased with the progress we have made to date, which positions the company to meet its target of bringing Spargoville into operation next year should the DFS be favourable.”
Mr Daws said that compared to the previous Resource Estimate, the company is expecting the amount of transitional material below the Open Pit to rise and the amount of Fresh material to fall.
The company is investigating the economics of two separate production streams for the Transitional and Fresh material which will feed into the Definitive Feasibility Study.
The removal of drill water from the base of the open pit has been completed and cleaning up of the ramp and pit floor will commence within weeks. Removal of the bulk sample is expected to be completed in October.
This sample of Transitional material will be tested at an alternative treatment facility to the Kambalda Concentrator and will be extending on successful bench-scale tests conducted in 2019. The drill core obtained from the recent drilling is being used for mineralogical analysis to zero in on the Transitional to Fresh boundary.
Visual observation of the core suggests that the Transitional boundary is situated lower in the profile than the previous resource had estimated. Semi-quantitative XRD analysis is underway on all intersections and blending of Transitional and Fresh composites will be sent to a Perth laboratory for further flotation tests.
The company looks forward to updating shareholders when the Resource Estimate has been completed and as the results of metallurgical and mineralogical studies begin to arrive.