Perth, July 31, 2008 AEST (ABN Newswire) - Emu Nickel (ASX:EMU) Announce The Quarterly Report For the Period Ending 30 June 2008
SUMMARY
- A further nickel sulphide intersection (1.8m @ 1.9% Ni from 557m) and a strong off-hole conductor at Emu Lake confirm the potential of the lower sulphide zone and point to other untested targets.
- Field checking of 10 strong VTEM airborne EM anomalies at Kambalda West confirm the prospectivity of these targets in preparation for drilling.
- Follow-up sampling at Koolyanobbing has confirmed a nickel-copper anomaly and identified a new gold anomaly.
- Further drilling of untested nickel targets planned at Woongaring.
- VTEM anomalies being followed up at Bronzite and Beetle Lake.
EMU LAKE (Emu earning 33⅓%)
Emu Nickel has the right to earn a 33.33% interest in the Emu Lake project from Image Resources NL where Xstrata Nickel (previously Jubilee Mines) is required to sole fund A$3.25 million between mid 2007 and late 2010 at the rate of at least A$1 million per year, in order to maintain its 66.66% interest.
As previously reported (ASX Release 30 May 2008), the last hole of the current 7-hole programme at the Binti Gossan Zone has intersected nickel sulphides with the significant mineralisation summarised as follows:
---------------------------------------------------ELD32 : 1.82m @ 1.94% Ni and 0.14% Cu from 557.21mincluding 0.20m @ 4.42% Ni from 557.21m 0.87m @ 2.21% Ni from 558.16m---------------------------------------------------
Drill hole ELD32 targeted a down-hole EM conductor modelled from previous drill hole ELD30. This drill hole intersected stringers of pentlanditepyrrhotite-chalcopyrite massive sulphide together with coarse disseminated pentlandite bearing sulphides in the interval from 557.21m to 559.03m on or close to the main ultramafic-felsic contact. The massive sulphide stringers are interpreted to be primary mineralised positions. Down-hole EM was completed on ELD32 and generated a moderately strong off-hole anomaly above and to the north of the hole.
Platinum and palladium assays have yet to be received for ELD32 and the other six drill holes from the current programme.
The drilling has confirmed the presence of massive nickel sulphide stringers and disseminations over a distance of 200m in the lower sulphide zone on the ultramafic contact, open down plunge. Within the lower sulphide zone a coincident central axis of off-hole conductors remains to be tested. These aligned conductors could reflect a central high grade core to this sulphide zone. It is significant that a large area immediately south of both the upper and lower sulphide zones remains undrilled between 300m and 600m below surface, where these zones are open down plunge.
A total of 13 drill intersections ranging in grade from 3%Ni to 16%Ni have now been made in the upper and lower sulphide zones, confirming the potential for high grade nickel sulphide shoots.
KAMBALDA WEST (Emu earning 30%)
As mentioned in the previous quarter, a VTEM airborne EM survey was flown over several target areas within the Kambalda West JV tenements in December 2007.
The survey identified 10 strong VTEM anomalies with characteristics consistent with a sulphide source in favourable settings for nickel sulphides.
Field verification and reconnaissance of the VTEM anomalies were completed during the quarter. All the anomalies inspected are under soil or alluvium cover, have not been drilled previously and are considered to be high quality exploration targets. Heritage and environmental permitting is now underway with drilling of these high priority nickel targets anticipated to start in the September quarter.
Emu Nickel has the right to earn a 100% interest in the Kambalda West tenements where Mincor Resources may in turn earn up to a 70% interest (diluting Emu to 30%) by expenditures of $1.5 million by mid 2012.
KOOLYANOBBING (Emu earning up to 100%)
Soil sampling has been carried out over a cumulative 5km strike length of an interpreted ultramaphic contact along one margin of the Koolyanobbing tenements, following-up geochemical anomalies from previous wide-spaced sampling (ASX release 22 July 2008). The geochemical survey defined a 1km-long nickel anomaly with coincident anomalous copper values. A programme of airborne EM surveying (VTEM) of the interpreted ultramafic contact is being planned in order to follow-up these encouraging results and search the contact zone for evidence of sulphide conductors. The VTEM survey is anticipated to be carried out in the September quarter. Nickel sulphide-bearing ultramafics occur some 20km northwest along strike from this anomaly, adding to the prospectivity of this area.
In addition, the follow-up sampling outlined a coherent gold anomaly about 1,500m in length and situated 6km southeast along strike from the nickel-copper anomaly. The gold anomaly coincides with an interpreted shear zone evident form aeromagnetic data. Field checking of this promising anomaly is in progress and it is anticipated that, subject to the necessary permitting, a programme of RAB drilling will commence in the September quarter.
WOONGARING (Emu earning up to 100%)
Further studies of the ultramafic rocks intersected by drilling in the previous quarter have indicated that they are dominated by tremolite-chlorite and tremolite-talc lithologies with limited potential for nickel sulphides. Further drilling of previously untested ultramafic targets in the Woongaring greenstone belt is being planned for the September quarter in a search for more favourable komatiitic host rocks.
DINGO DAM, BEETLE LAKE AND BRONZITE (Emu earning up to 100%)
Results from VTEM airborne EM surveys completed over aeromagnetic targets on these prospects during the March quarter indicate that the surveys were effective over between 50% to 75% of the area surveyed because of conductive overburden obscuring bedrock responses in some areas. Weak VTEM anomalies coincident with interpreted ultramafics at Bronzite and Beetle Lake are currently being soil sampled.
NOTE:
The information in this report that relates to exploration results is based on information compiled or reviewed by Roger Thomson BSc, ARSM, MAusIMM, MAIG. Roger Thomson is a director of Emu Nickel NL. Roger Thomson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the 'Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Roger Thomson consents to the inclusion of this information in the form and context in which it appears in this report.
Contact
George Sakalidis
Managing Director
Phone: (08) 9485 2410
Mob: 0411 640 337
Roger Thomson
Executive Director
Phone: (08) 9485 2410
Mob: 0419 969 183
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