Estrella Resources’ massive sulphide hits continue to flow at its Carr Boyd T5 discovery north of Kalgoorlie, with a new 6.75-metre intercept at the base of a broader 37.2m mineralised zone previously reported. Exploration is set to intensify after the explorer banks more than $11 million from options due to be exercised at the end of this month. Exercising of the options is now fully underwritten by independent corporate advisory firm, Henslow.
The latest intersection of thick massive sulphides at the base of the T5 pyroxenite continues Estrella’s 100 per cent strike rate with its phase 3 diamond drilling at T5. Assays from the recent drilling are awaited.
Estrella’s Managing Director, Chris Daws said:
“We have hit another impressive massive sulphide zone in our phase 3 drilling program, our best yet by far and with more drilling to come it is not unwarranted to expect more. It is a great reward for the patience that our team and shareholders have had in getting an understanding of the T5 geological setting.”
The latest drill hit comes from a hole designed as a platform for further wedge holes to target an area above where drilling previously recorded two significant massive-to-disseminated sulphide intercepts.
Drilling of a wedge hole targeting the area above the latest announced intercept has now started.
Management says mineralisation discovered at T5 confirms the company’s geological model and understanding of the T5 sulphide trap site that Estrella has developed over the past six months. That knowledge continues to inform the phase 3 drilling and will feed into upcoming phase 4 step-out drilling plans.
The company believes it is well placed to recognise key geological signals that hold it in good stead for targeting of other massive sulphide mineralisation outside of the main T5 conductors.
Mr Daws said: “The significance of gaining an indepth understanding of the local controls at T5 cannot be understated. We can take this understanding and begin to apply it to the broader T5 pyroxenite during phase 4 exploration and even beyond that. Seeing and understanding these broader geological phenomena allows us to trace sulphide flow through the Carr Boyd complex to additional and postulated trap sites as we know from our experience at T5 that they are often closely associated with massive nickel-copper sulphide formation.”
Past drilling at T5 returned multiple strong hits including a 20.1m intercept in one hole going 1.04 per cent nickel, 0.67 per cent copper, 0.05 per cent cobalt, 0.79 grams per tonne combined platinum and palladium and 2.45 grams per tonne silver from 368.5m depth.
The proposed phase 4 drilling will step-out over 3km north and 1.5km south of the current drilling. Testing for deeper mineralisation is also planned.
Carr Boyd consists of 259 sq. km of tenure that covers about 75sq.km of a mafic and ultramafic igneous complex hosting multiple nickel and copper sulphide occurrences, including the historical Carr Boyd Rocks mine.
The mine was operational in the 1970s and saw production of 202,100t of ore going 1.43 per cent nickel and 0.46 per cent copper. Estrella is investigating the possible links at depth between the mineralisation from the historical mine and the massive sulphides discovered at T5.
Estrella will have its hands full as it lifts the tempo of its exploration however it appears to have a financial windfall in front of it in the form of the option receipts.
Henslow has lined up “institutional and sophisticated investors” to take any unexercised options from the 225 million due to be exercised at 5c later in June.
Estrella shares were up more than 13 per cent at the time of writing today at 7.4c, capitalising the company at $62.3 million.
The option receipts will fully support Estrella’s planned exploration activities for the next 12 months or more.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
