LCL Resources confirms source of ‘high-grade’ nickel sulphide at Veri Veri prospect, PNG

Perth-based explorer LCL Resources (ASX:LCL) has confirmed the source of a ‘high-grade’ nickel sulphide float at its Veri Veri prospect within its Awala licence in southern Papua New Guinea.

The Awala licence surrounds the company’s Liamu and Ubei gold-copper projects.

LCL, which has a $30.18 million market capitalisation, reports a reconnaissance field program was conducted to find the source of the ‘high-grade’ nickel float, including boulders up to 1 in diameter, and to confirm assays and locations of trench sampling completed by the previous explorer Goldminex Resources (ASX:GMX).

This fieldwork identified a 200m-wide corridor with several serpentinised shear zones containing lenses of nickel-rich sulphides, which LCL considers to be the source of the ‘high-grade’ nickel mineralisation.

The company says it is encouraged by the ‘very high grade’ and frequency of nickel sulphide boudins noted along and across the strike of the corridor, along with its potential to yield bulk nickel grades of ‘economic significance’.

LCL’s geologists were ‘impressed’ with ‘boulder fields’ of nickel sulphides and nickel sulphide-bearing outcrops of up to 13.38% nickel and 5.35g/t gold that were excavated within the corridor. 

These results confirmed the surface boulders to be in situ and not transported float, while outcrop rock chip sampling confirmed historical Goldminex samples of up to 19.8% nickel and 8.7g/t gold.

LCL’s limited scout trenching program returned 3m @ 2.11% nickel and 0.23g/t gold, which confirmed historical trenching results from Goldminex.

Commenting on the exploration activities, LCL Managing Director Jason Stirbinskis says: “We currently don’t know the extent and number of nickel-bearing shear zones within the identified structural corridor nor the presence of nickel sulphides separate from the boudin structures. However, the scale of the shear zones in the small area we have mapped suggests they are part of a large nickel mineralised system which has yet to be tested either across its entire 200m width or along the majority of the Keveri Fault strike length.

“The company is currently planning its next steps for exploration programs appropriate for the steep topography and poor exposure”

The frequency of boudins and the very high nickel grades at Veri Veri bode well for the potential for what appears to be a distinctive hydrothermal nickel-gold mineralised system to bulk up to something with economic potential.

The company is currently planning its next steps for exploration programs appropriate for the steep topography and poor exposure, including new generation airborne electromagnetic (EM) geophysical surveys.”

LCL Resources is a Perth-based explorer focused on its targets considered prospective for gold, copper, and nickel at its Quinchia, Ono, and Veri Veri projects in Papua New Guinea.

On 26 June 2023, the company executed a binding sale agreement to acquire a tenement that adjoins its Veri Veri Nickel Project for 6.7 million LCL shares, a cash payment of $5 million, and a 2% net smelter royalty (NSR).

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Images: LCL Resources Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.