Ann: Drilling Confirms New Epithermal System at Chough Prospect, page-12

ORN has already proved see announcement on 27th April 2015.
The anomalism detected in the EM surveys are primarily attributed to a “polarisation effect”.
Polarising effects in EM surveys can be explained by a number of reasons, a key one being
the presence of disseminated sulphides within an intrusion.
The anomalies seen at PEN9 and PEN10 (Figure 6) are directly adjacent to the margins of the
HA2 magma chamber, and are interpreted to result from an increased polarisation effect at
these locations due to a combination of increased sulphide content as well as an
amplification of the polarisation effect by the contact with more resistive rocks.
Initial review and re-modelling of gravity data from the survey area indicates denser
lithologies in the eastern portion of PEN9 (Figure 6), which corresponds to a zone of weak
anomalism detected in the FLTEM survey (Figures 6 and 7). These features, considered in
combination with geochemistry and petrology from previous drilling, presents a target for
semi-massive and disseminated sulphides.
Bulk, disseminated nickel sulphide deposits are economically important producers globally
(e.g. Mt Keith in WA). This style of mineralisation is an important alternative to the Nova-
Bollinger style of massive sulphide mineralisation, which is primarily targeted in the Fraser
Range.
This style of mineralisation is better defined by IP surveys than by EM methods.