LCL Resources Ltd (ASX: LCL) has identified a number of targets in a successful 30-day due diligence (DD) process and review of Papuan Minerals Limited’s assets.
The DD period was part of the binding Tenement Sales Agreement with Papuan to acquire exploration licences EL 2391 and EL 25601. Acquisition of these assets, which follows acquisition of adjoining EL 25662, consolidates LCL’s 100% interest in a 3,400 sq. km project area prospective for nickel sulphide mineralisation and includes LCL’s existing Veri Veri high grade nickel sulphide prospect.
A technical review of previous exploration over all the acquired licences remains ongoing and to date has added two outcropping nickel sulphide prospects near the company’s Veri Veri nickel prospect. These three nickel sulphide occurrences (Iyewe, Doriri and Veri Veri) occur within a 10km long zone and reside in ultramafic intrusive lithologies (typically dunite/peridotite) of the Papuan Ultramafic Belt (PUB) proximal to the Keveri Fault Zone. Mineralisation is interpreted to be hydrothermal in origin, a distinctive style of nickel sulphide occurrence.
The partially completed review of historical exploration on the recently acquired exploration licences has been very revealing, identifying numerous occurrences of nickel sulphides, some of which have never been trenched or drilled. We have now defined three near surface nickel sulphide targets that appear to share a common hydrothermal genesis in shear hosted structures,” Managing Director, Jason Stirbinskis, said.
“LCL has undertaken fieldwork only at Veri Veri which led to the confirmation of the source of high-grade massive nickel sulphide boulders in the headwaters of Veri Veri Creek from an extensive nickel sulphide ‘boulder field’ 200m in width. Veri Veri has yet to be drill tested. At Iyewe, several exposures of nickel sulphides have been previously mapped within an area of two km x two km but never followed up. At Doriri, historical drilling has been restricted to a 35m strike of a 500m long nickel mineralised structure.
“We look forward to completing the desktop review, in particular the effectiveness of historical geophysical surveys considering the development of ‘new generation’ technology and commencing boots on the ground field work in Q4 2023.
“Our consolidation of exploration licences over the 10km long target zone which hosts Veri Veri, Iyewe and Doriri will enable a dedicated nickel exploration programme to target structures capable of hosting an economic nickel sulphide deposit(s).”
Next Steps
LCL is eager to progress its nickel portfolio given the early success at Veri Veri and the multiple additional targets already identified. The review of previous exploration over the 3,400km sq nickel portfolio, including large nickel stream sediment anomalies at Wedei and Safia, is expected to conclude in mid-October.
A field programme to define targets for 2024 drilling is currently being planned for execution in Q4 2023 and is likely to include:
- Ground truthing of identified targets
- Regional and prospect scale structural interpretation
- Reconnaissance field mapping and sampling at Doriri and ‘uphill’ of Iyewe
- Additional trenching at Veri Veri
- Consideration of appropriate new generation geophysical surveys such as airborne or
- ground electromagnetics (EM).
