SPARGOVILLE PROJECT
The Spargoville nickel project is located approximately 20km south-west of the nickel centre of Kambalda, offering immediate access to top-tier mining infrastructure.
Spargoville is highly prospective for Kambalda-style nickel mineralisation with the project covering a series of historic operations first discovered during the 1960’s, including the 1A, 5A, 5B and Andrews (5D) deposits.
Spargoville is highly prospective for Kambalda-style nickel mineralisation with the project covering a series of historic operations first discovered during the 1960’s, including the 1A, 5A, 5B and Andrews (5D) deposits.
In 2023-2023 the Company successfully mined and processed a 2,500 tonne trial parcel of transitional material at Glencore’s Murrin Murrin facility near Laverton in WA. This paved the way for the Company to conduct project development and mine planning studies at 5A, outlining a small-scale operation which can be brought online within a rapid timeframe.
With these development plans in place, the 5A deposit represents a strategic option for Estrella with the Company capable of monetising this asset during periods of favourable commodity prices.
Additional exploration opportunities exist below the other three deposits within the nickel-rights mining leases.
5A TARGET
The drilling by Estrella Resources at 5A has exceeded all expectations – with spectacular high grade nickel sulphide intercepts with accompanying polymetallic mineralisation. The drilling results have been consistently higher than previous drilling expeditions – with elevated platinum group and cobalt mineralisation.
With significant enhances in metallurgical technology, Estrella Resources is excited by the elevated results, which have the potential to substantially enhance the economics of the project. Recent cross-examination of historic geophysical datasets has also revealed the presence of several high priority EM targets, which will be targeted by future drilling.
5A October 2019 Mineral Resource Estimate (0.5% Nickel Cut-off)
The maiden Mineral Resource stands at 127,000 tonnes at 1.9% Ni and 0.15% Cu for a contained nickel metal inventory of 2,370 tonnes and is reported in compliance with the JORC Code (2012). The Mineral Resource is shallow with the majority of nickel within 100m of surface and amendable to open pit mining. The maiden Mineral Resource follows a detailed assessment of historic drilling and the inclusion of significant high grade nickel sulphide drilling results achieved by the Company (see ASX release 18 December 2018) which included;
- 15m at 10.45% Ni, 0.78% Cu, 0.20% Co, 0.87g/t Pb, and 1.15g/t Pt from 20m
- 5m at 11.32% Ni, 0.54% Cu, 0.21% Co, 0.42g/t Pd, and 0.22g/t Pt from 61m
- 3m at 12.90% Ni, 1.37% Cu, 0.29% Co, 1.86g/t Pd, and 0.67g/t Pt from 69m
Over 65% of the contained nickel tonnes in the 5A maiden Mineral Resource have been classified as Indicated with there being sufficient drill density and understanding of the mineralisation to satisfy this classification. The deposit is open at depth below the high grade nickel sulphide drill intercepts which allows potential for an increase in the current resource with further drilling.
GOING FORWARD
Estrella Resources has established the potential for further work, including follow up drilling, metallurgical test work and additional scoping studies. There is also potential for extensions in the down plunge position to the current mineralisation.
The drill spacing is currently considered adequate for the current level of interrogation of the project.
