The company has a six month option to acquire a 100% interest in the four tenements that make up the project from Coal First.
Drilling is also planned for its Calypso nickel sulphide project near Leonora in Western Australia while a review and target generation process is underway at the 8 Mile Creek gold project in Queensland.
During the due diligence phase, work will focus on exploring the contact and near contact zones of the granitoid/greenstone sequence to determine the potential for ultramafics and structures prospective for nickel and gold to exist within the Nickel First project area.
The four tenements cover a total area of 463.99 and are prospective for disseminated and semi massive Kambalda style nickel mineralisation as well as gold.
An aircore drilling program will commence at the Calypso nickel project near Leonora in December .
The company will drill an initial 10 holes to confirm nickel sulphide mineralisation and prospectivity of an ultramafic intrusive identified by BHP Minerals in their regional gold exploration during the mid 1980s.
This may be extended subject to exploration success.
Nickel sulphides assaying 16 metres at 0.2% nickel and 61ppm copper from 42 metres, including a high value of 2 metres at 0.43% nickel and 85 ppm copper were obtained in the only hole assayed by BHP Minerals in the Zeus aeromagnetic anomaly (MR382).
However, disseminated sulphides and cumulate ultramafic textures were recorded in other holes drilled in both the Zeus and Argos anomalies which were not assayed or followed up.
8 Mile Creek
8 Mile Creek is immediately adjacent to the Mt Leyshon mine which produced 2.5 million ounces gold and 2.2 million ounces of silver between 1987 and 2002 and 7 kilometres north of the Highway-Reward VHMS mine (2 million tonnes at 6% copper and 1.8g/t gold).
An intensive review has been undertaken of the 8 Mile Creek gold project by X-Plore Consulting with a view to assessing historical exploration results and establishing mineralisation models for follow up exploration and drill targeting.
To date ITT has been encouraged by the potential for gold mineralisation within the tenement and planning has commenced for the next stage of exploration.
InterMet had acquire 100% of the share capital in Lancaster by way of a share sale agreement with existing Lancaster shareholders.
Besides the Nickel First option, the acquisition also nets the company the Mt Jewell nickel project 65 kilometres north of Kalgoorlie; the Wilks Creek project in Victoria that is centred on a historical tungsten mine; and the Royal Tasman project in Tasmania that targets granite related, sediment hosted gold and greisen hosted tin mineralisation.
Lancaster also held cash assets of $450,000, providing a boost to the company's working capital.
With prime exploration acreage adjacent to Rox Resources' Mt Fisher and Fisher East projects added to its portfolio following the acquisition of Lancaster Resources, InterMet Resources is now progressing towards exploration to unlock the potential of its new assets.
With work also be carried out on its Calypso and 8 Mile Creek Projects it is game on for InterMet.
There is substantial news flow ahead for the company with initial exploration on Nickel First, the exercising of the option to acquire it from Coal First as well as drilling at Calypso and the review at 8 Mile all catalysts for share price re-ratings.
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