Lefroy Exploration (ASX: LEX) has acquired a ‘massive’ contiguous land holding named Glenayle in the Salvation Basin, approximately 210km northeast of Wiluna in Western Australia.
Five exploration licence applications were lodged over the new project by the 100%-owned Lefroy subsidiary Johnston Lakes Nickel, which is aiming for an ASX listing in 2022.
Speaking on the news, Lefroy Exploration Managing Director Wade Johnson said “we are excited by this massive land acquisition which we consider prospective for magmatic nickel sulphide mineralisation. It is not often that an opportunity to stake a such a large land holding and take a first mover approach over a prospective sequence of rocks in WA presents itself. The area has had limited previous exploration and we are very keen to expand and apply key learnings about Ni mineralisation in large igneous provinces that will provide exploration concepts for target selection.”
“It is not often that an opportunity to stake a such a large land holding and take a first mover approach over a prospective sequence of rocks in WA presents itself”
The new tenement position covers a 2,735km² area of the Proterozoic-age Salvation Basin, and is intruded by multiple dolerite sills extending over the entire land package.
The dolerite sills are part of the Warakurna Large Igneous Province, which extends west to the Bangemall Basin and east to the Giles Intrusive Complex. Importantly, the sills are considered prospective for nickel mineralisation.
The Glenayle Nickel Project was identified after a desktop assessment to identify new areas in Western Australia considered prospective for nickel mineralisation, and where a large first-mover land holding could be achieved.
Prior geological knowledge of the area from a field reconnaissance trip in 1998 by Wade Johnson, and the subsequent review of a research paper by Pirajno and Hoatson (2012) supported the acquisition.
Lefroy considers the area under-explored, as the compilation of previous drill data highlighted only three RC and two diamond holes in the entire area under application.
The Salvation Basin is situated north of the Earaheedy Basin, which has seen renewed exploration activity since the announcement by Rumble Resources (ASX: RTR) of a major zinc-lead discovery at their Earaheedy Project in April 2021. The Earaheedy and Salvation Basins are both Proterozoic age (2,500 to 541 million years old), but are comprised of different rock sequences.
The company reports that compilation and assessment of previous surface geochemistry, geophysical and drilling data from WAMEX at Glenayle is underway, whilst drill core from the only three diamond holes drilled at the project is being sourced.
Development of a detailed aeromagnetic and gravity dataset is also in progress, and will be the primary exploration tool to define targeted stratigraphic diamond drilling, scheduled for 2023.
Further work includes land access negotiations with the applicable native title group, and investigation of funding support via the WA Exploration Incentive Scheme where applicable. Tenements are expected to be granted in Q4 2022.