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  • Stratum Metals Identifies Nickel Sulphide Potential At East Menzies Goldfield 0 comments
    Jan 24, 2013 11:51 PM

    Stratum Metals (ASX: SXT) has pinpointed three separate large electromagnetic anomalies that show potential for nickel sulphide mineralisation at its Menzies Goldfields project.

    The company discovered the anomalies, which range in size from 200 to 490 metres in strike length, in a first pass time domain electromagnetic survey.

    These anomalies have the characteristics of genuine bedrock conductors that indicate the potential for massive sulphide mineralisation.

    They remain open and only partially defined due to the limited initial survey coverage which provides further extension potential to the anomalies.

    Martin Holland, managing director, commented: "This is an exciting discovery for Stratum on the East Menzies Goldfields project.

    "There has been no modern systematic exploration for nickel sulphides in the project area, so this offers us serious short term potential in addition to our substantial gold opportunity on the project.

    "The EM work has shown potential for a large system and the conductors are all open giving further opportunity for extension. We are looking forward to testing the conductors targeting for nickel sulphide mineralisation."

    Sampling at the project in drill spoils on the Jenny Venn gold prospect in the past has assayed up to 0.5% nickel and with highly anomalous chromium (0.3%-0.46%). These assays were taken in the vicinity of one major conductor.

    Work undertaken by CRA in 1969 also discovered a gossan south of the identified conductors called the "E" prospect with rock chip assays up to 1.43% nickel and anomalous copper and zinc.

    Only two follow up drill holes were completed on the prospect and both intersected mineralisation.

    Notable intersections of 3 metres at 1.49% nickel from 16.7 metres and 4.5 metres at 0.77% nickel in dispersed sulphides from 51 metres were reported from this drilling.

    Both drill intersections also showed anomalous copper and zinc associated with the nickel mineralisation.

    East Menzies Goldfield acquisition

    Stratum completed due diligence over the project in December which supports the company's continued path of consolidating the East Menzies Goldfield and has highlighted the significant potential of the area to generate further gold resources.

    By consolidating leases held by 11 different entities across 86 square kilometres and exploring it as one, Stratum could potentially identify a mini superpit within the East Menzies Goldfield.

    Initial expectations surrounding the Good Enough Gold Resource and potential production appears optimistic.

    An independent optimisation study completed by Orelogy shows a proportion of the existing resource can be extracted at a cash cost of $1,112 per ounce based on contract mining and utilising a nearby gold mill.

    Stratum has also secured a new strategic international investor, Mountain Gold International, to assist in funding the East Menzies acquisitions.

    An initial A$1.35 million investment has been made with an expectation that further funding will follow in 2013.

    Stratum will own 60% of newly incorporated subsidiary, Menzies Goldfield Limited, while Mountain Gold International will hold a 40% shareholding.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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