Junior explorer Lycaon Resources (ASX:LYN) is preparing to begin drilling in August at its Bow River Nickel-Copper-Cobalt Project in the Kimberley region of Western Australia.
The $9.22 million market capitalisation company reports heritage and flora surveys have been completed, which allows drilling to begin at the project, though unseasonal rain caused delays due to road closures at the Fitzroy River bridge.
This upcoming drilling program aims to demonstrate the potential for a major nickel-copper-cobalt resource in the Kimberley analogous to Panoramic Resources’ (ASX:PAN) Savannah nickel mine 60km to the south.
Lycaon’s share price has risen by 16% to $0.29 as of 2:10pm AEST.
Drilling is planned to target beneath the current extent of historical drilling, targeting the deeper part of the intrusion. Historical gravity Falcon data, along with recent ground gravity data, has been modelled by Southern Geoscience Consultants (SGC) as a 3D inversion to better quantify the magnitude of the gravity anomaly, location at depth, and size.
Lycaon says this work has allowed for a higher geological confidence in assisting drill planning ahead of drilling in Q3 2023.
Meanwhile, at the Stansmore Niobium-Rare Earth Element (REE) Project in the West Arunta region of Western Australia, Lycaon reports land access negotiations are proceeding ‘well’.
The company says it has agreed to ‘key’ commercial terms of the land access agreement to allow for consideration and endorsement of the agreement by the Parna Ngururrpa Aboriginal Corporation’s board of directors at an on-country meeting to be held at Balgo in October 2023.
Commenting on the upcoming drilling program, Lycaon Resources Technical Director Thomas Langley says: “We are finally in a position to begin drilling at Bow River, which has been delayed due to unseasonal rain and subsequent road closures at the Fitzroy bridge.
We continue to push for our exploration programs to be completed across the West Arunta and Kimberley projects, with an appreciation of the native title negotiations and the timing necessary to allow for this to occur.
“Bow River is an extremely compelling nickel-copper magmatic sulphide prospect which ranks as a standout target in the Kimberley”
Bow River is an extremely compelling nickel-copper magmatic sulphide prospect which ranks as a standout target in the Kimberley, with similarities to Panoramic’s Savannah mine, and I’m extremely excited to be able to drill this very soon.”
Lycaon Resources is a junior explorer focused on searching for base metals and rare earths across its portfolio of projects in Western Australia. These assets include the Stansmore Niobium-REE Project in the West Arunta region and the Bow River Nickel-Copper-Cobalt Project in the Kimberley region.
On 31 March 2023, the company had $2.722 million cash at hand, according to its latest quarterly report published on 19 April 2023.
Write to Harry Mulholland at Mining.com.au
Images: Lycaon Resources Ltd