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Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
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  • Stratum Metals To Drill Nickel-Gold Conductors In Western Australia 0 comments
    Nov 14, 2013 11:28 PM

    Stratum Metals (ASX: SXT) has contracted NDRC Drilling to drill priority nickel-gold targets at its East Menzies project, near Kalgoorlie in Western Autsralia.

    Notably, NDRC will accept payment in Stratum shares to complete reverse circulation drilling of 3 modelled, cross-referenced interpreted structures in lieu of cash.

    The shares will be priced at the higher of $0.06 or $0.015 below current market price witin 14 days of drilling completion. They will also be subject to escrow for one month.

    This highlights the perceived potential of the targets, with an experienced drilling contractor with expertise in the region willing to forgo the surety of monetary compensation in order to gain exposure to a potentially large nickel-gold discovery.

    Stratum received a strong level of interest from contractors, several commenting on the quality of the project.

    NDRC contacted Stratum after reviewing the recently released investor presentation on 11th November, enthused by the potential and wishing to discuss drilling services in return for an equity stake.

    Conductors

    Managing director Martin Holland had previously told Proactive Investors that one of the conductors, located close to the Goodenough Mine, was "as strong as it gets".

    This interpretation was based on final processed data from the HeliTEM survey flown in March, results from initial drilling, downhole electromagnetic work and historic data.

    "While a lot of conductors found by electromagnetic work are big long bands, this is different on the basis that the body is an odd shape, making it less likely to be a simple geological horizon."

    East Menzies

    Stratum is the first company to consolidate the East Menzies goldfield area, providing the necessary scale for potential mining and development.

    An extensive land holding of 154 square kilometres that covers over 444 old mine shafts, 229 identified conductors, 20 priority conductors with the 3 drill-ready targets to be drilled imminently - for a company capitalised at under $5 million, the potential upside is rare.

    The icing on the cake is its proximity to existing infrastructure, service providers and existing mineral processing mills, and a management team that includes Terry Grammer, AMEC Prospector of the Year 2000 and Non-Executive Director of Sirius Resources (ASX:SIR), currently and during the discovery phase of the Nova-Bollinger nickel-copper deposits.

    Drilling is expected to commence next week; given the prospectivity of targets and managements history of success, increased market awareness could translate into share price action with drilling and assay results.

    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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