Neometals reports further high-grade nickel sulphide at Mt Edwards

Neometals Ltd (ASX: NMT) has announced further encouraging assay results from the RC drilling at its Mt Edwards nickel project in WA.

The company reported massive nickel sulphide intercepts from RC drilling at Armstrong deposit. The drill assay results include 6 metres @ 8.11% nickel including 5 metres @ 9.63% ; 10 metres @ 1.65% nickel including 4 metres @ 2.42% nickel; and 3 metres @ 1.07% nickel.

The company said that the significant intercepts are within wide mineralised zones of disseminated nickel with assays including 34 metes @ 1.94% nickel, and 24 metres @ 1.13% nickel.

Neometals said that 1m @ 1.18% Ni was intersected at newly acquired tenement (along strike from Mincor’s Cassini Mineral Resource).

Mt Edwards Project

NMT’s wholly owned Mt Edwards mineral exploration project comprises tenements covering an area of 240 square kilometres in a historic nickel sulphide belt, located 40km south of Mt Marion and 35km west of Kambalda in Western Australia.

The Mt Edwards project hosts 130,000 tonnes of contained nickel estimated across ten nickel sulphide mineral resources, within what is emerging as a highly endowed and globally significant lithium province.

DHEM surveys at Mt Edwards

The company reported that Drilling, sampling and down-hole electromagnetic (DHEM) surveys were conducted at the Armstrong deposit on Mining Lease M15/99, and on the Exploration Licence E15/1553.

DHEM is an excellent method of near hole nickel sulphide exploration and is also useful for confirming the continuation of mineralisation between holes.

In addition to the geochemical assays showing positive results, Neometals have conducted DHEM surveys on two drill holes completed at Armstrong, and two of the holes completed on E15/1553.

Drilling at Mt Edwards

NMT said that in November and December 2019, an RC drill program was conducted at the Armstrong deposit on Mining Lease M15/99 (3 holes for 826 metres), and on the Exploration Licence E15/1553 (8 holes for 1,257 metres). The company said that the drill program included a sampling and assay program with rigid QAQC controls that will enable results to be used in future Mineral Resource estimations.

Armstrong (M15/99)

NMT said that the drilling at Armstrong was planned to infill and test extents of the Armstrong Mineral Resource (320,000 tones @ 2.6% nickel for 8,180 nickel tonnes), with a focus on understanding the interpreted down plunge mineralised zone, and remobilised high-grade shoots at depth below the main ultramafic-basalt contact.


Exploration Licence E15/1553 is located amongst the southern group of tenements held by Neometals at Mt Edwards, directly north and along strike from Mincor’s Cassini Mineral Resource, and adjacent to Neometals Lake Eaton prospect.

High-grade results from M15/99

The company reported high-grade assay results from the three drill holes (MERC106, MERC107, and MERC108) at M15/99.

The company said that all three RC holes successfully intercepted the “main” ore zone. Significant intercepts include 6 metres @ 8.23% nickel including 5 metres @ 9.63% (MERC106); 10 metres @ 1.65% nickel (MERC107); and 3 metres @ 1.06% nickel (MERC1108).

NMT said that the assay results on M15/99 support the interpretation of thick disseminated nickel sulphide intercepts (up to 34 metres down-hole width) with high-grade zones of matrix to massive nickel sulphide up to 5 metres thick (5 metres at 9.63% nickel).

Encouraging assays from E15/1553

The company said that eight RC holes were drilled on the recently acquired Exploration Licence 15/1553 in November 2019. They are, MERC099, MERC100, MERC101, MERC102, MERC103, MERC104, MERC105, MERC106, MERC107, and MERC108.

The holes targeted geophysics anomalies re-interpreted from moving and fixed loop ground EM surveys conducted over the area by previous holders, as well as using the geochemistry results from a small number of RAB and AC holes across the tenement to seek the ultramafic – Basalt contact zones.

The company said that of the eight holes drilled, two holes (MERC099 and MERC105) drilled through sequences of ultramafic with little variation in mineralogy, two holes (MERC103 and MERC104) drilled from ultramafic rock into the underlying basalt with no material elevation in nickel grade or sulphide levels, and two holes (MERC102 and MERC102A) were abandoned at 22 and 23 metres due to ground conditions. Holes MERC100 and MERC101 drilled from ultramafic into basalt with elevated nickel near the contact of MERC100.

The company said that drill hole MERC100 returned 3 metres at 0.69% nickel, including 1 metre at 1.13% nickel from 100 metres. The mineralised zone is approximately 10 metres above a contact with the underlying basalt.

NMT reported that in drill hole MERC101, minor sulphides were logged at 98 to 105 metres, and assay results show there is elevated (although not significant) nickel, copper and sulphur values at 99 to 102 metres.

Mineralised intercepts from drill program

The company reported that at E15/1553, two of the eight holes drilled show nickel mineralisation, while a further two holes have successfully penetrated and located the ultramafic – basalt contacts.

At M15/99, the company said that a massive nickel sulphide zone in MERC106 (6 metres @ 8.23% nickel) is within a wide disseminated nickel zone (34 metres at 1.94% nickel).

The mineralised intercepts from the Nov-Dec 2019 drill program shows that significant intercepts of nickel sulphide have been seen in all three drill holes at Armstrong, and in two of the eight holes at E15/1553.

Updates and future plans

NMT reported that it will now consider a campaign of diamond core drilling at Armstrong to further understand the structural orientation and metallurgical properties of the deposit.

The company said that at E15/1553, ground geophysical surveys are planned to augment the geological knowledge gained from the recent drill and DHEM surveys.

NMT said that upon completion of the drilling, 50mm PVC casing was inserted into some of the drill holes at both Armstrong and E15/1553 to enable DHEM geophysical surveys to be carried put. The geophysical modelling and interpretation are currently being conducted.

Neometals reported that it is also currently conducting a review of results recently received from an Air Core drill program at the Baldrick, Percy, and Double Eagle prospects located on Mining Leases M15/45, M15/46, M15/77 & M15/79 on the western side of the Widgiemooltha dome, south of Mincor’s Wannaway Nickel mine (abandoned).

Management statements

Neometals’ Managing Director Chris Reed said: “These strong results from Armstrong continue our success in identifying massive nickel sulphide mineralisation within our existing inventory.

In preparation for a strengthening nickel market in the medium term, driven by increasing demand in the battery materials sector, Neometals will undertake mining studies and develop a pipeline of short lead time nickel sulphide resources.

The successful discovery of nickel sulphide mineralisation along strike from Cassini just inside the boundary of a newly acquired tenement provides encouragement that our extensive tenement package around the Widgiemooltha Dome is one of the most prospective areas for greenfields nickel discoveries.”

Written By Jonathan Norris
Jonathan is a founder of and has been covering the resources industry since 2018. With over 17 years experience in print, broadcast and online media, Jonathan has seen first hand the transformative effect of online niche media.