Askari Metals (ASX:AS2) has flagged the potential for ‘strong’ nickel sulphide mineralisation potential following a soil auger survey at its wholly owned Callawa Copper Project in Western Australia.
The $16.82 million market capitalisation company says results, generated from 864 samples gathered across Callawa, have returned assays up to 1,808 parts per million (ppm) nickel, 2,349ppm chromium, and 111ppm cobalt.
Askari reports results also indicate a strong correlation of above 90% between nickel, cobalt, and chrome, as well as a high correlation between nickel and magnesium.
These correlations are ‘significant’ since they indicate several characteristic geological features of magmatic nickel sulphide mineralisation are likely present in the area.
Magmatic nickel sulphide deposits are often hosted by the peridotite group of rocks, including dunites, making chrome association favourable.
The company notes these elevated results, in conjunction with these strong correlations bode well for potential magmatic nickel sulphide mineralisation at Callawa.
Magnetic data will now be reviewed and interpreted by geophysical consultants to identify primary targets ahead of a follow-up soil auger program that will be designed to fill the data spacings in the current 200m by 100m dataset and further define the mineralised target.
Results will help determine future activities at the project.
Commenting on the program, Vice President-Exploration & Geology Johan Lambrechts says: “The company is encouraged by the results of this soil geochemical campaign which has demonstrated the significant potential to explore for a major nickel sulphide deposit.
The East Pilbara has become an exploration hotspot for nickel, copper, gold and lithium with several major discoveries made and deposits developed.
Nickel demand is on the rise as the critical metal is increasingly needed for the advancement of the global energy transition. Callawa presents an exciting opportunity to supply this demand, through development of a multi-commodity project with a focus on nickel and copper.”
Askari Metals was incorporated for the primary purpose of acquiring, exploring, and developing a portfolio of ‘high-grade’ battery and precious metal projects across Namibia, Western Australia, Northern Territory and New South Wales.
The company’s Callawa project is located about 85km northeast of Marble Bar and covers more than 167km-square of the Pilbara Craton.
Askari Metals had $3.453 million cash at hand as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Askari Metals