ASX-listed Estrella Resources has hooked onto more nickel sulphides at its flagship Carr Boyd nickel-copper project 80 kilometres northeast of Kalgoorlie in Western Australia.
The latest assays have confirmed high-grade mineralisation beneath the project’s historical workings. A single diamond drill hole yielded a significant strike of 8.07m grading 4.37 per cent nickel and 0.75 per cent copper within a larger length of 16.2m running 3.12 per cent nickel and 0.60 per cent copper from 192.35m downhole
The company says the assays confirm high-grade mineralisation continues below the old workings and the intersections coincide with a downhole electromagnetic, or “DHEM” response modelled from a previous work drilled into the basal contact in October 2021.
Estrella Resources Managing Director, Chris Daws said:“The Carr Boyd project continues to produce some exceptional results, with numerous intersections of massive nickel sulphide and some very high nickel and copper assays associated with these drill hits.”
“Our understanding of this large mineralised system is gaining with every drill hole. The high-grade results received from hole CBDD064 beneath the historic Carr Boyd mine not only sees our geological model intact but also bolsters our confidence to unlock further massive nickel sulphides.”
“We are also well funded to continue our drilling efforts to locate what we believe could be a world class nickel sulphide discovery at Carr Boyd and I look forward in providing further news as we push forward.”
Interestingly, the Carr Boyd Mine contained within Estrella’s ground was worked between 1972 and 1977 by Great Boulder Mines and then Western Mining Corporation before being closed due to lowering nickel prices and Western shifting focus.
Estrella reports that in total 210,000 tonnes at 1.44 per cent nickel and 0.46 per cent copper were extracted and processed with a recovery of 79 per cent, producing a 10 per cent nickel concentrate. The company believes higher recoveries are possible by using modern flotation technology.
The remaining resource, albeit prepared under outdated reporting standards stands at 636,000t grading 1.4 per cent nickel and 0.5 per cent copper. Estrella says it plans to sink some confirmatory holes before re-interpreting the old tally and ultimately brandishing a resource compliant to the current Joint Ore Reserves Committee standards.
Estrella has recently collared another hole targeting the basal contact below its T5 prospect where it discovered the first significant strike of nickel sulphides in 2019.
The explorer believes the work will improve downhole electromagnetic coverage below the currently identified mineralisation and is necessary as the area is known to shroud the geophysical response of additional sulphides.
Drilling is expected to be completed in the next few weeks around the same time the company will bring on a second diamond rig to quickly advance its exploration of previously identified mineralisation at its other prospects along the basal contact.
In a collaborative effort with the CSIRO, Estrella is trying to determine if the historically mined Carr Boyd mineralisation was derived from a pool of sulphides located on the T5 basal contact. The company says if proven it would confirm its hypothesis regarding the area’s potential to host large-scale nickel-rich sulphide trap deposits.
According to Estrella, CSIRO has completed the collection of data required and has now commenced the analysis.
Commenting on future nickel prices Bloomberg said:“Nickel soared past an unprecedented $100,000 a ton on the London Metal Exchange amid a huge short squeeze that’s embroiled a major state-owned Chinese bank and encouraged rule changes from one of the world’s top commodity exchanges.”
“The material used in stainless steel and electric-vehicle batteries surged as much as 111% Tuesday after rallying as much as 90% the day before.”
With the nickel price on the march, the explorer could be in for a busy period over the coming months as it attempts to confirm the presence of large-scale nickel beneath its boots.
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