Ann: Multiple mineralised structures identified at WA projects, page-5

Highlights

* Aeromagnetic imagery has identified multiple prospective primary mineralisation-bearing structures (interpreted shear zones and laterised dykes) for Co-Ni-Cu across the Galah Well and Peperill Hill projects in Western Australia
* Peperill Hill contains several north-south trending structures, similar to a shear zone with elevated Co-Ni-Cu levels connecting Talisman Mining’s (ASX: TLM) Sinclair Nickel Mine (38kt Ni produced 2008-13)1 to St George Mining’s (SGQ) Schmitz Well cobalt prospect (2m @ 7,290ppm Co from 34m) 2
*Within the Peperill Hill tenement, historic air-core drilling reported near-surface weathered ultramafic units with elevated cobalt readings – this confirms the lateritic cobalt potential for the project
*An offset series of east-west trending dykes, that have the potential to contain significant CoNi-Cu sulphide mineralisation, appear to extend from SGQ’s Mt Alexander project for 60km through the Galah Well and Peperill Hill projects2
*A recent study3 believes these east-west trending structures represent a new mineral province, yet to be confirmed, prospective for PGE-Cr in addition to Co-Ni-Cu – this assertion is supported by SGQ Mt Alexander drill-hole assays 5.3m @ 0.16% Co, 4.95% Ni, 2.75% Cu and 4.55g/t PGEs from 158m4
*Finally, enhancing the mix positively, the region is prospective for secondary lateritic Co-Ni mineralisation as legacy geochemical assays (from soil samples) from the Galah Well project have recorded 2m @ 2,430ppm Co from surface2
*With the desktop and geophysics highlighting the two projects are highly prospective for CoNI-Cu mineralisation, next steps will be sending a team on an inaugural site visit

Non-Executive Chairman Dr James Ellingford commented: “The Board is delighted the desktop study confirms the two West Australian projects are highly prospective for cobalt, nickel and copper mineralisation. In due course, a team will be sent to site to follow on key target areas. However, the immediate priorities are finalising logistics for the inaugural drilling program to commence at the NSW projects.” *