Toro Energy Limited (ASX: TOE) has announced an encouraging update from the exploration drilling at the Christmas Target Area on its Yandal Gold Project.
The company reported that RC drill hole TERC13 drilled within the Christmas Target Area has intersected thin lenses or ‘fingers’ of massive sulphide containing nickel.
Toro said that the massive sulphide lenses are hosted in a geological setting consistent with komatiite hosted nickel sulphide deposits present elsewhere in the Yilgarn. The lenses are concentrated at 177-178m downhole where the total nickel concentration is 0.38% nickel over the metre interval.
TOE reported that the hand-held Portable X-Ray Fluorescence (hh_pXRF) analysis of drill chips suggests individual massive sulphide lenses containing at least 1% nickel.
Toro reported that the current nickel values are from a limited number of selected samples for expedited analysis. More geochemistry is expected by the end of November.
Yandal gold project
The Yandal Gold Project is located within the world class gold district, the Yandal Greenstone Belt less than 35km NE of the multi-million ounce Bronzewing Gold Mine.
The project is only 50km east of the world class Mt Keith Nickel Mine.
The project comprises over 143 km2 of contiguous and untested yet highly prospective exploration ground, in the high yielding Yandal Gold District.
Important target areas of Yandal project include Christmas, Shadow Rock, Golden Way, November Rain, Maze, and Mako.
Exploration drilling at the Christmas
The exploration drilling at the Christmas Target Area is currently ongoing.
The company reported that hole TERC13 was drilled on the western side of the Christmas Target Area, some 730m west northwest of hole TERC06. They are hosted in ultramafic/komatiite near to a basement contact with granite.
Fingers of massive sulphides
The company reported that thin lenses of massive sulphide containing nickel are concentrated over 1m from 177m downhole in TERC13.
Toro said that the preliminary assay results from a limited number of samples chosen for expedited geochemical analysis returned a 0.38% nickel concentration over the metre interval containing the massive sulphides.
hh_pXRF analysis of drill chips
The company reported that the analysis of a number of drill chips of massive sulphide by hand-held portable X-ray Fluorescence (hh_pXRF), with chips filed flat for a more accurate analysis, suggests the massive sulphide lenses contain at least 1% nickel.
Toro reported that it is likely that such concentrations are due to the presence of nickel sulphides such as pentlandite.
The company said that the sulphides observed as coatings on rock cleavage and fracture surfaces, which extend intermittingly for tens of metres above the massive sulphide lenses, may also contain nickel according to hh_pXRF analysis.
Extensive stretches of ultramafic/komatiite
Toro believes that the nickel with sulphides in TERC13 suggests there may be a significant concentration of komatiite hosted nickel sulphides nearby, where it remains untested to the north, east and south.
Within the direct vicinity of TERC13, the area is open to exploration to the north for at least 2km, to the south for some 500m and at depth throughout. More significant anomalies of nickel were also uncovered in the aircore program in the November Rain Target Area, suggesting the ultramafic/komatiite sequence continues to the south from November Rain.
The company said that the intersection in TERC13 also highlights the prospectivity of the extensive ultramafic rock package that exists on the Yandal Gold Project.
The company said that a detailed mineralogy and mineral chemistry analysis is currently being planned. This is being done to better understand the nickel mineralisation intersected in TERC13 and so as to better plan for the future exploration for komatiite nickel sulphides on the Project.
The company reported that the full geochemistry of TERC13 is expected at the end of November.