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Blackham Resources' Partner Finds Nova Style Nickel Eye In Fraser Range

Blackham Resources' (ASX:BLK) partner Rumble Resources (ASX:RTR) has defined multiple high priority nickel sulphide targets including a significant Nova style 'eye' feature at their Zanthus Project in the Fraser Range, Western Australia.

Rumble currently holds a 20% interest in Zanthus and can increase its stake up to 75% from Blackham, which has an 80% stake, through further exploration expenditure.

The nickel sulphide targets are located just 25 kilometres east of Sirius Resources' (ASX:SIR) Nova-Bollinger nickel copper massive sulphide discoveries.

The targets were identified following interpretation of the completed detailed airborne aeromagnetic survey over Zanthus.

A structural corridor with numerous large intrusive features and significant magnetic highs was also discovered.

Rumble, which is earning up to 75% of the project, has identified three priority target areas - including the Nova style eye feature - for a detailed moving loop ground electromagnetic survey that will start by the end of July.

This will ascertain the level of conductivity, strike, dip and depth of the recently discovered conductive bodies to.

Further ground electromagnetic programs will also be planned over other large intrusive bodies interpreted from the magnetics data to identify further conductive bodies that may represent massive sulphides.

Once these are completed, a program of shallow aircore drilling will intersect the shallow bedrock to interpret the geology of the area and help in target generation from the magnetics data.

Deeper reverse circulation and diamond drilling where warranted will be then used on priority targets.

"Congratulations to the Rumble Resources team in the aeromagnetic and ground EM work they have done over the last 5 months at the Zanthus project in the Fraiser Range," Blackham managing director Bryan Dixon said.

"This work has been successful in identifying some sizeable conductors in one of the world's most interesting nickel provinces.

"Blackham will continue to monitor the results of Rumble's work with interest."

Eye Feature

The eye feature is interpreted as an elliptical magnetic rimmed intrusive body some 2 kilometres in length and up to 1 kilometre wide, a similar size to the Nova "eye" feature.

It was crossed with a single line of the orientation ground electromagnetic survey which indicated the presence of a bedrock conductor.

These features are indicators commonly associated with mafic intrusive complexes that host nickel, copper and platinum group element ore bodies.

As a result, these are priority targets for follow up ground electromagnetic as these orebodies contain zones of massive sulphides which can be detected as strong conductors.

Notably, the world class Nova massive sulphide nickel-copper discovery was found through drilling a bedrock conductor within an eye intrusive.

Structural Corridor

The companies also identified a significant structural corridor with numerous large intrusive features and significant magnetic highs.

This zone is a significant structural break in the regional geology and covers a large area some 14 kilometres by 5 kilometres and will be a main focus area of next stage exploration which requires a systematic exploration approach.

Previous ground electromagnetic work completed in April had also increased the identified potential bedrock conductors from 3 to 7.

A high powered detailed ground electromagnetic survey will be required to further define the nature of these bedrock anomalies.

Farm-out

Rumble had acquired an initial 20% in Zanthus after issuing Blackham with 2 million shares.

It can move to a 50% interest via exploration expenditure of $1 million over the first 2 years of the venture.

Upon meeting the 50% interest, Rumble will pay Blackham $250,000, as 30% cash and 70% Rumble shares.

In order to move to a 75% interest, Rumble must spend an additional $1.5 million during years 3 and 4; and upon meeting the 75% interest, Rumble is pay an additional $500,000 to Blackham, again as 30% cash and 70% Rumble shares.

Blackham will be free carried to completion of a bankable feasibility study in relation to the project.

Analysis

While Blackham Resources is currently focused on its Matilda Gold Project, the results from Zanthus Project are still exciting given the discovery of an eye feature similar to the Nova massive sulphide nickel-copper discovery.

That Blackham is free carried to completion of a bankable feasibility study gives it exposure to significant nickel exposure while minimising risk.

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