Resources & Energy (ASX:REZ) - Nickeliferous Sulphides at East Menzies
Hints of Nickeliferous Sulphides at Springfield support historical BHP and CRA findings and potential for further discoveries at East Menzies.
Resources & Energy Group Limited (ASX:REZ or the Company) advise that results from Scout drilling investigations for gold at the Springfield Prospect (P29/2500) at East Menzies have returned anomalous intervals of Nickel Sulphide mineralisation.
The recent findings are supported by historical exploration results by BHP and CRA within the broader prospect area. Collectively the results raise the possibility of nickel sulphides with accessory base metal concentration and gold within a sequence of Felsic Volcanics and Pyritic meta‐sediments. The prospective sequence rests above a suite of Ultra Mafic rocks which have been interpreted as Meta Komatiites.
The productive horizon is an “interflow” sequence that has been brought into a surface near position along the Springfield‐Venn Fault Zone. This meta‐sedimentary sequence interleaves with mafic and ultra‐mafic rock type and outcrops along the south western side of the East Menzies Project Area for a distance of approximately 5km. As well as gold the package, in general, is now considered by the Company to be prospective for Nickel, with accessory Zinc, Lead and Chromite.
- Following ongoing review and work at Springfield, REZ obtained two historical drilling reports by CRA from 1969 and BHP from 1986.
- These reports both include strong intervals of Nickel sulphides.
- The 1986 BHP reported “significantly high values of Ni with a maximum of 2.9%. Values greater than 1% included 3m @ 1.53% from 15m, 3m @ 2.27% from 31m and 2m @ 1.24% from 6m of depth” This was at the Cepline prospect in the Springfield Venn zone, some 800m north of the Companies Scout Drilling program.
- The 1969 CRA reported surface Nickel Gossans of 0.95% to 1.43% Ni, 10ft of 1.49% Ni at 55ft to 65ft, and 15ft @.77% at 170ft to 185ft. This was also at the Cepline prospect in the Springfield Venn Fault zone, also 800m north of the Companies Scout Drilling program.
- In response to this research, the company arranged multi‐element analysis of two intervals of massive and semi‐massive sulphide mineralisation from scout borehole SFRC01 and reviewed previous exploration in the area.
- Despite being 800m south of Cepline, results from multi‐ element analysis in borehole SFRC01 whilst not conclusive, included anomalous Nickel with a peak assay of 3m @ 0.16% Ni from 34‐37m, and 6m@ 0.11% Ni from 61m down the hole. SFRC01 also included a peak gold assay of 1m @ 1.7g/t from 53m down the hole.
The results from this recent and historical exploration suggest that the Nickel potential within the broader East Menzies Tenement Group has not been exhausted. The interflow sediments, when in close contact with underlying Komatiites are prospective for Nickel and base metals. An analysis of historical exploration indicates that there has been little or no focus on this prospectivity over the past 35 years or so and follow up investigations in today’s commodity environment are warranted.
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