Golden Mile Resources announced that the company has successfully completed its initial program of sampling and mapping at the Quicksilver nickel-cobalt project.
Sampling has further extended the surface anomaly at the Garard location, which now covers over 2,400 metres of strike and over 1,000 metres in width. This phase of geochemical surveying has returned the highest grade cobalt and nickel surface sampling results, recorded to date from the project, including: QSSO29 6370405 N/ 656903 E (MGA94-50) 305ppm Cobalt & 2,720ppm (0.27%) Nickel.
Quicksilver Soil Sampling
The Quicksilver nickel-cobalt project is located in the SW Mineral Field of Western Australia. The project is composed of one granted Exploration Licence (E 70/4641 – 100% Golden Mile) covering 15 km of prospective stratigraphy. Previous exploration has yielded an extensive nickel-cobalt surface anomaly at Garard’s, which has now been extended, and covers over 2,400 metres of strike; this anomaly has yet to be systematically drill tested but has previously returned high-grade (>0.5%) cobalt intercepts in shallow drilling.
Golden Mile has recently completed a program of extensional soil sampling across the southwestern corner of the Garard location. A total of 45 samples were taken on 200 x 100 metre spacing, with more than a third of those samples returning anomalous nickel (>100 ppm) and/or cobalt (>25 ppm) assays, with peak results in QSSO29 of 305 ppm cobalt and 2,720 ppm nickel.
The program of sampling & mapping has successfully:
- Extended the recognised nickel-cobalt anomaly by a further 400 metres (to 2,400 metres in strike)
- Returned the highest grades of cobalt & nickel in surface geochemical sampling at the prospect
- Defined the contacts of the geological host unit at Quicksilver, in particular the western ‘footwall’ contact
- Identified two additional target areas for follow up & extensional surface sampling, namely ‘Wyatt’s West’ and ‘Garard South’ anomalies
- Defined three priority, cobalt enriched (>100 ppm), targets within the Garard prospect for drill testing including ‘Fenceline’, ‘Ridge Cap’ & ‘Wyatt’s’
In addition to the surface sampling at Garard’s, geological mapping was undertaken to assist in the interpretation of the surface geochemistry as well as preparation for the upcoming drilling program.
An initial program of drilling is now programmed for the Garard prospect area at Quicksilver. Wide spaced aircore drilling is planned on 400 x 100 metre north-south drill lines and is designed to:
- Drill test the surface nickel-cobalt anomalies at Garard’s
- Infill and extend on the historical drilling, as well as confirm the presence of high-grade cobalt (>5,000 ppm or 0.5%) mineralisation in the sub-surface environment
- Provide systematic drill coverage and allow the estimation of an initial ‘Exploration Target’
- Drilling is in the final stages of the permitting process and is programmed to commence in the coming weeks.
The demand for cobalt in the global market remains strong, with the price reaching an 8-year high of US$60,000 in overnight trade on the London Metals Exchange (LME Cash Seller & Settlement). In course of the 2017 calendar year, the cobalt price has close to tripled, rising from a low of US$21,700 in late March to $60,000/tonne in overnight trade. This growth in the value of cobalt has been triggered by increased demand from the power storage industry, with analysts tipping this trend to continue, and be sustained, in the short to medium term.
Golden Mile looks forward to updating investors as the Company’s exploration program at Quicksilver, and in the Leonora region, continues to progress.