Matsa Resources is pleased to announce assays from the recently completed diamond drillhole 14KLDH06 at the Hanging Wall Gossan (HWG) prospect Killaloe.

Highlights

  • A total of 43m of elevated nickel values up to 0.58% Ni in several zones of disseminated Ni sulphides between 7m and 164m downhole.
  • Ni mineralisation observed as finely disseminated violarite/pentlandite in association with pyrrhotite and chalcopyrite.
  • An intercept of 0.2m @ 0.58% Ni, 0.37% Cu from 111.3m coincides with a narrow massive sulphide vein in komatiite.
  • 14KLDH06 did not intersect the interpreted basal contact target zone because of drillhole deviation due to faulting above the target. As a consequence, the predicted massive sulphide target at the base of the channel sequence remains untested.
  • A new drillhole to commence as soon as possible on completion of downhole EM surveys.

Killaloe Project (Matsa Resources 80%, Cullen Resources 20%)

These recent results continue to strongly support the target concept for Kambalda style nickel sulphide mineralisation. Nickel sulphide mineralisation has now been confirmed in 4 of the 6 diamond drillholes completed to date.

Whilst very encouraging results were received from drillhole 14KLDH06 with several Ni sulphide intercepts seen, faulting above the target caused the drillhole to deviate and miss the basal contact target which is considered most prospective for Kambalda style nickel mineralisation. (Kambalda style nickel sulphide deposits are commonly disrupted by post mineral faults). The result is that this high priority target remains untested and further drilling will be undertaken to test the target.

HWG remains a high quality nickel sulphide target and drilling is planned to commence immediately after completion of the downhole EM survey.

14KLDH06

Results Drillhole 14KLDH06 was drilled to test the interpreted position of a basal contact in channel facies komatiite lavas which is potentially an ore-bearing/focusing structure and considered to be most prospective for Kambalda style nickel mineralisation. The orientation of this drillhole is based on an analysis of bedding and fault directions in oriented diamond drill core (14KLDH01-14KLDH05) and surface mapping. The analysis concluded that lithological contacts at HWG dip moderately towards the north and have been disrupted and offset by late stage northwest trending faults.

Sampling and assay procedures for drillhole 14KLDH06 are detailed in Appendix 1, drill collar location in Appendix 2 and results for Co, Cu, Cr, Mg and Ni are presented in Appendix 3.

The drillhole intersected cumulate and spinifex textured ultramafic rocks from surface to a downhole depth of 164m where the ultramafic sequence is interpreted to be in contact with high magnesium basalt along a steeply dipping fault. The high Mg basalt unit passes into a fault bound and sheared package of ultramafic, mafic and sedimentary rocks at 211.2m and the hole was terminated at 279.9m.

Assays >0.2% Ni are presented in Table 1 which illustrates the strongly elevated Ni values in the upper part of the drillhole above the fault intersection at 164m.

The highest Ni result of 0.20m @ 0.58% Ni, 0.37% Cu between 111.3m – 111.5m coincides with a narrow massive sulphide (mostly pyrrhotite with lesser chalcopyrite and Ni sulphides) vein in cumulate textured komatiite lavas.

The presence of elevated nickel and copper values in these intercepts, strongly supports their location within or proximal to a mineralised lava channel pathway.