Black Fire Minerals (ASX: BFE) has undertaken a reassessment of the nickel potential of its Mystique Project in the Albany-Fraser Belt of Western Australia which has highlighted the location of a number of nickel soil anomalies proximal to the project.
The review of the project was undertaken in light of continuing exploration success at Sirius Resources' (ASX: SIR) Nova discovery, located 40 kilometres southwest of Mystique, which has confirmed the nickel exploration potential of the Albany-Fraser Belt.
The re-assessment was based on new information available on the Nova discovery, regional geophysical datasets and historic Geographe Resources' broad spaced, 1 kilometre by 1 kilometre, soil geochemical sampling results from the late 1990s.
The most significant of the nickel soil anomalies proximal to Mystique is located 3 kilometres to the west of the licence boundary and peaked at 1,640 parts per million nickel and 76 parts per million copper.
While this anomaly is outside of the Mystique Project area, available regional scale aeromagnetic data indicates that the prospective host geological unit may continue southwest into the Mystique licence and present an approximately 10 square kilometre target area that warrants further testing.
While this area was soil sampled by Geographe on a 1 kilometre by 1 kilometre grid with a best result of 40 parts per million nickel, this very broad spacing is not considered an effective test in this totally sand covered and complex regolith environment.
Black Fire is now planning an initial detailed auger soil geochemical program on 250 metre by 250 metre spacings, and will re-assay some existing gold exploration soil samples for nickel and base metals within the target area.
If results from the sampling program are encouraging, Black fire then plans to carry out follow-up aircore drilling and electromagnetic programs.
The Mystique Project comprises a single granted exploration licence E28/1915 and is subject to a joint venture agreement with Entrée Gold (TSX: ETG) under which Black Fire can earn a 75% interest by spending $2.5 million over five years.
The key focus is the Torquata Prospect, a very large 4 kilometre by 2 kilometre gold soil anomaly that has been subjected to a number of drilling programs over the last 18 months.
The project's proximity to Sirius' Nova discovery has spurred investor buying, with Black Fire receiving a price and volume query earlier this week over a 115% share price spike.
Shares in the company hit an intra-day high of A$0.14 on Monday from the previous Friday's close of A$0.065 on more than 5 million shares being traded before it requested a trading halt.
Today's announcement is very positive for Black Fire and provides an interesting new twist to the company and its future valuation.
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