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Mining Projects Group And Newexco Progress Fraser Range Nickel Projects

Mining Projects Group's (ASX:MPJ) consultant geologists Newexco have released preliminary results from the first stage Moving Loop Electro Magnetic Survey indicating that follow up drilling is warranted at the Fraser Range East and Dingo Range projects in Western Australia.

Fraser Range East Project is near Sirius Resources' (ASX:SIR) Nova and Bollinger nickel deposits while Dingo Range Project is near Rox Resources' (ASX:RXL) Mt Fisher Project.

The Moving Loop Electromagnetic program was designed to test for the presence of bedrock conductors which may be associated with nickel mineralisation and to further understand geological structures.

Preliminary results have now been received from Newexco and are outlined below.

Joshua Wellisch, managing director, commented "It is early stages in the development of these recently acquired projects and it is very encouraging to have progressive results."

The concurrent Mobile Metal Ion Soil Sampling at Fraser Range East is still to be assayed.

Fraser Range East Project

The first stage Moving Loop Electromagnetic survey program was conducted during May 2014 at the Balladonia Prospect within the Fraser Range East Project.

A broad anomaly has been recorded in the mid-time response of the three westernmost lines over a strike-length of 800 metres, and is open in both directions.

The large wavelength of the anomaly suggests the source is laterally extensive.

Best modelling results were achieved using three plate models with low to moderate conductance to represent the source. The plates are modelling at a depth of between 50-70 metres and the source of the anomaly is unclear as it may be related to conductive overburden or shallow bedrock responses.

Newexco have noted that more geological information could improve and constrain the interpretation, and assay results and interpretation of the MMI soil samples over the area are in progress.

Director Neil Hutchison commented: "As this is the first orientation program completed over the Fraser Range tenements we are encouraged by the effectiveness of the survey over a very small area of MPJ's tenement package.

"We await the result of the MMI soil sampling to assist in the interpretation of the anomaly so MPJ can determine the extent and most effective method for the follow-up exploration work."

Dingo Range Project

The first stage Moving Loop Electromagnetic survey and follow-up Fixed Loop Electromagnetic survey program was carried out at the Dingo Range Project during June 2014.

The MLEM data covers 12 kilometres of strike along variably magnetic source rocks which are presently interpreted to indicate volcanic, possibly mafic/ultramafic rock beneath pervasive cover.

This indicates that the cover conditions increase in either thickness or conductivity to the northwest.

Central to the survey a number of weak anomalous responses have also been identified.

The FLEM survey covers the strongest of these which confirmed the presence of locally strong conductive cover, and modelling accurately constrained the source to surface.

Further weak anomalous responses were identified proximal to this source, which remain to be followed-up, however further geological information is required to put these sources in context.

The presence of conductive cover warrants a follow up drill program to establish the depth of cover, bedrock geology and determine the effectiveness of the MLEM survey.

Newexco

The work carried out by Newexco was the first stage of geophysical exploration completed on both the Fraser Range East and Dingo Range Projects.

MPJ is pleased with the quality of the work to date and the progressive results that demonstrate enhanced nickel prospectivity.

Sirius' Nova and Bollinger nickel deposits had Newexco's Bill Amann instrumental in their discoveries.

Newexco is now behind MPJ, with Bill Amann and Adrian Black agreeing to take shares in MPJ for their services. That shows their belief that MPJ could make a major nickel discovery in Western Australia.

Neil Hutchison will also take shares in MPJ for his services.

Neil was the geologist behind the discovery of the Windarra Nickel Project & Cerberus Nickel Deposit, and the Cosmos Nickel Project.

Together, Newexco and Neil have found most of the major modern nickel deposits made Western Australia.

Following receipt of a final report from Newexco, and the assay results from the MMI soil sampling, MPJ will establish a drilling proposal to continue exploration on both projects.

Analysis

It's early days for MPJ but it has stacked the odds in its favour by teaming with renowned nickel prospectors Bill Amann and Adrian Black.

Add Neil Hutchison, a small market cap and multiple projects adjoining major nickel discoveries and there is a recipe for success.

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