Auroch Minerals (ASX:AOU) reports that it has delivered a JORC (2012) Mineral Resource Estimate (MRE) for its Nepean Nickel Project in Western Australia.
The company reports that Nepean has a MRE of 236,000 tonnes @ 1.5% Ni and 0.11% Cu for 3,625t of contained nickel and 252t of contained copper, with the MRE based on both historic drillholes and those completed by the company in 2021.
This new MRE represents the known shallow nickel mineralisation above 290mRL only and is expected to form the basis of pit optimisations and mine studies, as part of the Nepean Scoping Study that is looking into a potential open-pit mining scenario.
“We are currently focussed on the shallow nickel mineralisation above and around the old mine that could potentially be mined in an open-pit scenario”
Speaking on the MRE, Auroch Minerals Managing Director Aidan Platel said: “We are very pleased with the JORC (2012) MRE for the shallow nickel mineralisation at the Nepean Nickel Project. Whilst we know there exists significant high-grade nickel sulphide mineralisation at depth in and around the historic underground mine workings, we are currently focussed on the shallow nickel mineralisation above and around the old mine that could potentially be mined in an open-pit scenario.
Earlier this year we completed metallurgical test work that confirmed the shallow nickel sulphide mineralisation is amenable to traditional benefication techniques for Kambalda-style nickel sulphides. Now that we have successfully modelled this small but significant shallow nickel resource, we can commence mine studies and design as part of the Nepean Scoping Study that will assess the potential to fast-track the project towards development and production from a future open pit mining scenario.
We are also very pleased to commence exploration drilling at Nepean early next week. The IP target that aligns with the footwall of a high-Mg ultramafic is a high priority nickel sulphide target that we look forward to drill testing, and we will keep the market updated with results as they come to hand.”
Auroch also notes that about 50% of the new shallow Nepean MRE is situated within the Indicated resources category and indicates that there is ‘significant’ potential to increase the proportion with support from minimal additional drilling.
In addition, the company has also successfully completed metallurgical testwork on the shallow nickel sulphide mineralisation and has highlighted the possibility of generating early cash flow from an open-pit scenario.
The Nepean Nickel Project is located about 60km southwest of Kalgoorlie in Western Australia and represents a joint venture (JV) between Auroch Minerals and Lodestar Minerals, with Auroch owning 80% of all associated tenements and Lodestar owning the remaining 20%. The projects comprise a historic ‘high-grade’ Nepean nickel sulphide mine, which has historically produced 1,108,457t of ore for 32,202t of nickel metal at an average recorded grade of 2.99% Ni.
With the new MRE now delivered, Auroch announces it will move forward with a two drillhole (~700m) reverse circulation (RC) drilling operation next week to target the high priority induced polarisation (IP) target at the Nepean North Prospect.
Images: Auroch Minerals Ltd
