Perth, Oct 30, 2008 AEST (ABN Newswire) - Emu Nickel NL (ASX:EMU) report quarterly activites with three new nickel anomalies outlined by geochemical surveys at Emu Lake.
Additional Highlights include:
- Drilling of VTEM and aeromagnetic targets in progress at Kambalda West.
- Extensive flora surveys completed at Kambalda West paving the way for drilling of additional VTEM anomalies.
- Drilling of nickel, gold and iron targets carried out at Koolyanobbing.
- An airborne EM survey scheduled for Koolyanobbing in the December quarter.
- First-pass geochemical sampling of VTEM and aeromagnetic targets identify anomalies for follow up at Dingo Dam, Beetle Lake and Bronzite.
- A strong cash position of $8.2 million, with a market capitalisation now significantly less than the cash-backed value.
EMU LAKE (Emu earning 33%)
Emu Nickel has the right to earn a 33% interest in the Emu Lake project from Image Resources NL where Xstrata Nickel (previously Jubilee Mines) is required to sole fund expenditure of $3.25 million between mid 2007 and late 2010 at the rate of at least $1 million per year, in order to maintain its 66% interest.
Platinum group element (PGE) assay results from nickel sulphide zones in four diamond drill holes (ELD 30, ELD 31A, ELD 32, and ELD 37) completed earlier in the year at the Binti Gossan Zone were returned during the quarter. The sulphide intervals generally consist of pyrrhotite-pyrite-chalcopyrite stringers within felsic/intermediate volcaniclastics.
Geochemical surveys and/or infill sampling have identified nickel anomalies at West Lake, Binti West. All three anomalies appear to coincide with aeromagnetic anomalies suggestive of ultramafic rocks and provide targets for further follow up. In addition several gold anomalies have been identified for follow up on a lower priority basis.
KAMBALDA WEST (Emu earning 30%)
As previously reported (ASX release 7 March 2008 and March 2008 quarterly report), airborne EM surveys identified 10 strong VTEM conductors on this package of ten exploration licences west of Kambalda. Eight of the VTEM anomalies are situated within a proposed conservation area, requiring a more rigorous permitting process than normal. An extensive flora survey has been completed and submitted to the Department of Environment and Conservation as part of this process. It is proposed to drill these targets upon receipt of the permit approvals.
In the meantime, aboriginal heritage surveys have been completed over the tenements and drilling has commenced on VTEM and aeromagnetic targets situated outside the proposed conservation area.
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 expenditure of $1.5 million by mid 2012.
KOOLYANOBBING (Emu earning up to 100%)
A 930m, 141-hole aircore drilling programme was carried out to test nickel, gold and iron targets identified by geological mapping and geochemical sampling on this southern extension of the Koolyanobbing greenstone belt (ASX release 2 October 2008). Sample analysis results are awaited prior to assessing the results of the drilling.
As previously foreshadowed, a VTEM airborne EM survey is scheduled for the December quarter to search a cumulative 5km strike length of interpreted ultramafic contact for evidence of nickel sulphide conductors.
DINGO DAM, BEETLE LAKE AND BRONZITE (Emu earning up to 100%)
These tenements cover interpreted ultramafic rocks in a poorly explored region to the west of the Kambalda nickel district. The interpreted ultramafic rocks may represent part of a new nickel district extending south from the Queen Victoria Rocks nickel sulphide occurrence. As previously reported (June 2008 quarterly report and 2 October 2008 ASX release), VTEM surveys were flown over Dingo Dam, Beetle Lake and Bronzite earlier in 2008.
At Dingo Dam the VTEM survey identified two conductors, one of which (Dingo VP1) is coincident with magnetic stratigraphy at the southern end of the tenement. Widespaced soil sampling over the tenement identified a low level gold response coincident with the Dingo VP1 anomaly, together with gold and multi-element anomalies at the north end of the tenements.
At Beetle Lake the VTEM survey also identified two conductors, one of which (Beet VP2) coincides with a discrete aeromagnetic anomaly. Wide-spaced geochemical sampling over the aeromagnetic target zones identified a weak gold response coinciding with the Beet VP2 anomaly and a 3km-long gold and multi-element (As, Bi, Mo) responses coinciding with an interpreted greenstone sequence.
At Bronzite the VTEM survey identified a weak conductor (Bron VP1) coinciding with magnetic stratigraphy. Reconnaissance soil sampling over the interpreted greenstone sequences returned a 3km-long low level gold response partly coinciding with the interpreted greenstone sequence.
Subject to the necessary permitting, it is proposed to drill test the stronger VTEM conductors and geochemical anomalies in this unexplored region.
CORPORATE
ASX code; EMU
Cash position; $8.2 million, significantly in excess of the current market capitalisation of $2.4 million.
Issued capital;
59,828,940 fully paid ordinary shares.
10,000,000 options exercisable at 50 cents by 27 February 2013.
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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