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Segue Resources Generating Drill Targets At Plumridge Nickel Project

Segue Resources (ASX:SEG) has committed to the next major phase of exploration at the Plumridge Nickel Project in the Fraser Range, Western Australia, with the start of a large-scale multi-phase gravity survey.

Plumridge is located on the same Fraser Range gravity high as the Nova-Bollinger nickel and copper deposit.

The survey over E39/1731, where Segue is earning 80%, is designed to provide detailed coverage over the E21 Target to provide high priority drill targets for the first quarter of 2015.

It will also collect regional data across the majority of the project area.

New targets have also being identified from detailed airborne magnetic survey over E39/1731 while assays from drilling at the E21 Target have confirmed the presence of magmatic sulphides.

"Segue has commenced a project-wide gravity survey, which will add to the company's existing datasets and provide an additional level of information for the generation of quality drill targets," managing director Steven Michael said.

"Segue has been able to benefit from the current lull in general exploration activity with reduced rates and increased availability of personnel, which will enable the survey to be completed by April 2015.

"The detailed gravity survey over the E21 Target area will be completed by the end of this year and, when combined with the recently acquired airborne magnetic data, will provide immediate drill targets for 1Q 2015."

Target Generation

The large-scale, multi-phase gravity survey is designed to provide immediate detailed coverage over key targets like E21 and E28 while also collecting regional data across the majority of the project area.

This will capture a high quality data set that can be integrated with the existing detailed airborne magnetic data to generate and better define quality targets for follow-up drilling and electromagnetic surveys.

Application of 3D Inversion Modelling will be central to this work.

Published data on Sirius Resources' (ASX:SIR) Nova Nickel-Copper Deposit has noted that while magnetic data indicates key geological features of interest, the intrusions that host the deposits are identified in the gravity data.

Electromagnetic surveys can then be focused on priority coincident gravity-magnetic features to produce direct drilling targets.

The program will consist of an immediate detailed survey at the E21 Target on an 800 metre by 100 metre station spacing.

This information will be used in conjunction with the airborne magnetic data to target the presence of mafic-ultramafic intrusions within the target area.

The detailed gravity survey at the E21 Target is expected to be completed within two weeks.

Segue will then move the survey to the regional areas (1,600 metres by 100 metres to provide a regional dataset that will be critical to generate the next phase of targets. Infill surveying will be completed as required based on results.

The entire survey is expected to be completed by the end of April 2015.

Airborne Magnetic Data

The entire Plumridge project is now covered in high-quality 100 metre line spaced data following the completion of the detailed airborne magnetic survey.

This data will continue to form the basis for targeting across the wider project area.

The priority target areas across the project are focused on "ovoid" fold features that are considered to be the preferred sites for mafic-ultramafic intrusions (the host to the targeted nickel-copper sulphide deposits).

These areas will be covered as part of the gravity program and reconnaissance aircore drilling will also be undertaken on selected targets.

These will form the basis for more targeted exploration such as electromagnetic surveys and drilling.

E21 Target

In November, drilling at the E21 Target identified the presence of mafic-ultramafic rocks that host magmatic iron-rich sulphides.

These are interpreted to potentially be part of a larger intrusive system.

All assay data has now been returned, confirming the magmatic sulphides are predominantly pyrrhotite and pyrite, with minor chalcopyrite.

Analysis

Segue Resources continues to progress exploration at the Plumridge Nickel Project with the detailed gravity survey to generate targets for drilling at the E21 area in the first quarter of 2015.

Adding to the interest, the company will benefit from the current lull in general exploration activity with reduced rates and increased availability of personnel, enabling the survey to be completed by April 2015.

With more than 3,000 square kilometres of tenements at the Plumridge Nickel Project and control over 10% of the gravity high that represents the area of greatest nickel prospectivity, this is just the beginning for Segue.

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