Estrella Resources (ASX:ESR) reports additional ‘high-grade’ assays following a diamond drilling (DD) operation at its Spargoville Nickel Project in Western Australia.
The results, generated by an ongoing 20 drillhole DD campaign, continue to confirm visual estimate expectations consistent with historical results.
Key results include drillhole SPDD003 which intersected ‘very high-grade’ transitional mineralisation including 0.6m @ 11% Ni, 48m vertically below the open pit.
Results were also received for SPDD012 which intersected both oxide and transitional mineralisation. The total intersection was 7.45m @ 1.32% Ni including an oxide-transitional zone 2.22m grading 2.42% Ni.
Speaking on the results, Estrella Managing Director Chris Daws said: “These latest high-grade assays show visual estimate widths are consistent with historical results and further supports our view that the 5A ore body has the potential to be brought into production in the near-term.
“The team are accelerating towards kicking off full scale mining of the 5A nickel resource”
The team are accelerating towards kicking off full scale mining of the 5A nickel resource which remains on target in the first quarter of 2023. It’s all systems go as we Estrella seeks to bring Spargoville back into production and I look forward to updating the market every step of the way.”
The company also notes that further assays have been submitted for semi-quantitative XRF analysis to identify the type and quantity of oxide and transitional mineral species ahead of its planned metallurgical studies.
In addition, it is reported that the oxide and transitional mineralisation boundaries have been modelled higher than the current drilling suggests, providing support for the calculation of a revised Mineral Resource Estimate (MRE) which will feed into the ore reserve and pit optimisation modelling of the project.
The Spargoville Nickel Project is located about 20km south-west of the township of Kambalda in Western Australia and comprises four key deposits that are prospective for nickel, copper, and cobalt mineralisation.
With the current DD program coming to an end, Estrella announces that it has moved forward with plans to extract 2,000-4,000 tonnes of material for the upcoming metallurgical testing.
Full scale mining of the 5A target is expected to take place in the Q1 2023, however is subject to positive definitive feasibility study (DFS) outcomes, financing, and statutory approvals.
Images: Estrella Resources Ltd
