News: Riedel Resources, Australian Mines start survey to identify nickel sulphide conductors

Riedel Resources (ASX:RIE) has advised that its joint venture partner Australian Mines (ASX:AUZ) has commenced a follow-up electromagnetic survey over their Marymia Project in the Doolgunna region, Western Australia.

Marymia is along strike and on the same Jenkins Fault as Sandfire's DeGrussa copper-gold mine, and 12 kilometres from Ventnor Resources' (ASX:VRX) Green Dragon and Thaduna copper deposits.

AUZ is earning up to 51% in Marymia by making a $250,000 cash payment by 30 October 2014 and spending $1 million on exploration within an initial two-year period.

The survey, which follows up on recently completed diamond drilling at the Simmons prospect, is designed to identify bedrock conductors within the northern continuation of the Simmons ultramafic sequence that may reflect the presence of nickel sulphide mineralisation.

In addition to testing the extension of the komatiitic unit at Simmons, the current EM survey is also designed to test for potential Kambalda-style mineralisation at the company’s other high priority nickel targets.

This include the 1,200 metre be 800 metre MM001 surface geochemical anomaly with peak values of 1,826ppm of nickel and 674ppm of copper as well as the 2,400 metres by 1,200 metre MM004 anomaly that is developed on a sub-cropping ultramafic lithology.

The survey is expected to be completed by late November with drill testing expected in December.

Independent researchers have previously concluded that the ultramafic sequence at Marymia may represent the northern extension of the Norseman-Wiluna nickel belt.

Preliminary results from the two-hole diamond core drill program at Simmons intersected two distinct sulphide zones, including a four-metre wide sulphide zone near the base of the ultramafic sequence.

The assay results from these drill holes are currently pending.

Preliminary observations and geological logging of the Simmons diamond core suggest that both drill holes may be located in the ‘Flanking Zone’ of a komatiitic unit.

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