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  • WPG Resources Intersects Broad Zones Of Nickel At Muckanippie 0 comments
    Jun 25, 2014 7:53 PM

    WPG Resources' (ASX:WPG) recent aircore drilling has intersected broad zones of anomalous nickel mineralisation at the Nardoo South prospect of its Muckanippie project in South Australia's Gawler Craton region.

    Aircore drilling to test an intense magnetic anomaly defined by a ground magnetic survey in 2013 at the Duke prospect returned anomalous gold assays.

    Additional grid based aircore drilling is now planned to follow up the results from these two prospects.

    Worthwhile anomalies that emerge will be tested with deeper reverse circulation drilling.

    Nardoo South

    WPG drilled 23 aircore holes for 1,104 metres on three sections at Nardoo South.

    Individual 2 metre samples returned nickel assays up to 1220ppm and also confirmed the broad extent of the anomalous nickel mineralisation.

    Assays indicate that anomalous nickel mineralisation is present throughout the weathered profile and into the bedrock.

    The results of the upper interval from each of the drill holes have outlined a sub-surface nickel anomaly that is open to the south.

    Significant intersections include:

    - 4 metres at 555ppm nickel from surface in NSAC18;
    - 6 metres grading 947ppm nickel from surface in NSAC20; and
    - 6 metres at 641ppm nickel from surface in NSAC21

    Zones of anomalous nickel were also recorded from within the regolith horizons on all three drill sections including:

    - 36 metres grading 541ppm nickel from a depth of 4 metres in NSAC06;
    - 22 metres at 690ppm nickel from 18 metres in NSAC18; and
    - 10 metres at 523ppm nickel from 14 metres in NSAC14.

    In addition, anomalous nickel assays were intersected in bedrock identified as mafic and ultramafic intrusive rocks from two of the holes with assays of 2 metres at 1,150ppm nickel from 52 metres at NSAC04 and 1 metre at 700ppm nickel from 28 metres in NSAC11.

    Minor concentrations of cobalt, copper, iron, silver and zinc are associated with the nickel mineralisation.

    Duke Prospect

    At the Duke prospect, WPG drilled 11 holes for a total of 464 metres including 10 designed to test the geochemical response associated with an intense magnetic anomaly trending NNE with a strike extent of 2.3 kilometres.

    Significant gold assay results were obtained including:

    - 10 metres at 121ppb gold from 30 metres including 2 metres at 543ppm from 32 metres at DAC05
    - 1 metre at 82ppb gold and 250ppm tungsten from 42 metres at DAC08.

    Minor anomalous nickel, cobalt, copper, silver and vanadium were also intersected in the Duke drill holes.

    Muckanippie

    Muckanippie EL 5154 covers part of the north-western side of the large Malbooma Anorthosite Complex, a large circular intrusion that covers an area of approximately 800 square kilometres.

    It comprises anorthosite, gabbro, diorite syenite, granodiorite and granite.

    Elsewhere in the world similar anorthosite complexes are host to significant nickel and copper massive sulphide deposits.

    Analysis

    While investor attention has been focused on WPG Resources' acquisition of the advanced Tunkillia and Tarcoola gold projects in South Australia's Gawler Craton, the aircore drilling results at Muckanippie are also promising.

    The discovery of broad zones of anomalous nickel mineralisation at the Nardoo South prospect and anomalous gold at the Duke prospect have clearly sparked enough interest within the company for additional aircore drilling to follow up on the results.

    This is the first stage of a drilling campaign on priority targets in a Phase 2 exploration program on the tenements.

    The Gawler Craton is host to several large producing mines and emerging mineral deposits including Olympic Dam, Prominent Hill, Challenger, Carrapateena and Hillside.

    WPG had $6.1 million in cash as of 31 May 2014.

    Proactive Investors has initiated coverage with a price target of $0.085 within 9 months based on peer analysis.

    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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