Victory Mines Shares in Victory Mines Ltd (ASX:VIC) surged 14 per cent on Friday after management provided an overview of the geology at its two Western Australian cobalt-nickel-copper projects, Peperill Hill and Galah Well.
These are located in reasonably close proximity to St George Mining’s (ASX:SGQ) Mount Alexander Project.
Aeromagnetic imagery has identified multiple prospective primary mineralisation-bearing structures for cobalt-nickel-copper across the Galah Well and Peperill Hill projects in Western Australia.
One of the key findings, highlighted by the preliminary interpretation of the aeromagentic imagery, was that the Peperill Hill and Galah Well projects are positioned close to where two, and possibly three, differing mineralised systems intersect as indicated below.
Victory believes that this largely explains why the two projects are highly prospective for cobalt-nickel-copper mineralisation hosted within sulphides and laterites.
Although it is an early stage play and investors should seek professional financial advice if considering this stock for their portfolio.
More specifically, management pointed to a north-south trending shear zone/magnetic anomaly that connects Talisman Mining’s (ASX:TLM) Sinclair Nickel Mine, which produced 38,000 tonnes of nickel between 2008 and 2013, with the SGQ Schmitz Well prospect.
Further, the Schmitz Well is located on this same system where a significant cobalt intercept had occurred.
A recent study by Wingate MTD purported that these east-west trending structures represented a new mineral province, yet to be confirmed, prospective for cobalt-nickel-copper and other metals.
Victory is of the view that this assertion is supported by SGQ’s Mt Alexander drill-hole assays of 5.3 metres at 0.16% cobalt, 4.95% nickel, 2.75% copper and 4.55 g/t platinum group elements from 158 metres. These assays were released as recently as mid-June 2018.
While it is early days for Victory, one would have to say it is targeting an area that has the propensity to yield positive results.
