All is not lost!

One 550m deep hole has been completed to test the Red Cap EM target. This target was modelled as being due to a sulphide-rich body with dimensions of 400 x 800m at a depth of 475m. The test hole found two zones of sulphide mineralisation at depths of 273m and 523m. The sulphides were predominantly pyrrhotite with minor pyrite. No graphite was found. The bedrock consisted of banded garnet bearing granulites. No mafic or ultramafic rocks were reported. The hole was sited on the edge of a gravity high which was assumed to be caused by mafic rocks.

Nickel mineralisation invariably occurs with pyrrhotite. The fact that the sulphide zones were predominantly pyrrhotite is positive - perhaps the hole has missed the ore body and penetrated a barren edge or part of the mineralisation. The sulphide zones are not where the model placed them. The downhole EM should provide an indication of the orientation of the conductors. No graphite is a positive as it is the cause of many EM anomalies. The absence of any mafic rocks is a concern. Sulphide-rich metasediments - the granulites, are the host for nickel deposits of this sort.

Further work is needed in this area and I will hold my shares for now. DYOR.