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Mining Projects Group Drilling New Nickel Sulphide Channel At Roe Hills

Mining Projects Group (ASX:MPJ) is continuing exploration at the Roe Hills nickel project in Western Australia by completing diamond holes and downhole surveys.

The company will complete the two diamond holes at the Roe 1 prospect and the remaining four planned down hole electromagnetic (DHEM) surveys at the Roe 1 and Talc Lake Prospects.

Adding to the prospectivity of the area, nickel sulphide fertile lava channels have been defined at both prospects, these are at opposite ends of the Roe Hills 40 kilometres strike.

This strongly indicates that the entire belt contains numerous prospective lava channels in addition to the two already defined.

Previous assay results at Roe 1 had returned elevated nickel-copper-PGE in two holes with the ultramafic rock in the lava channel shown to be comprised of a lizardite serpentinite that is very similar to the Cosmos ultramafic geology and thus a very encouraging sign that the system is highly prospective.

The company has expanded the next major stage of the program to identify and drill test strategic targets along the entire 40 kilometres strike.

This will include an extensive geophysical electro-magnetic ground survey which will target conductive nickel sulphide mineralisation within the defined lava channel corridors.

Identification of multiple nickel sulphide fertile lava channels throughout the 40 kilometre strike will confirm the existence of a massive fertile ultramafic belt conforming to the company's geological "Cabbage Leaf" model (Kambalda style komatiite flows).

This will highlight the significant scale of the Roe Hills project and the prospectivity of multiple new major discoveries along the entire belt.

"MPJ's leading Technical Team continues to achieve positive results by maintaining its scientific and methodical approach to the exploration using the knowledge and expertise accumulated from previous modern nickel discoveries made by the team," managing director Joshua Wellisch said.

"The confirmation of a new major lava channel at Roe 1 is a very exciting progression which significantly increases the prospectivity of the entire 40 kilometre strike at Roe Hills.

"It's a major credit to Mr Hutchison and our technical team as they continue to pinpoint successful drill holes, rapidly defining strategic target channels highly prospective for major discoveries.

"The nickel intersections and the geology recorded in the holes to date at Roe 1 have a very strong correlation to the discovery history of known deposits such as Cosmos, Prospero, Sinclair, Cerberus, Silver Swan and Camelwood Nickel deposits.

"These deposits were all discovered over a period of time by following the disseminated and narrow nickel sulphide leads within the core of the lava channel.

"Once the channel core is located DHEM and clever geological interpretation will assist in the discovery of the bigger, potentially economic nickel sulphide deposits."

Roe 1 Prospect

The first cross section of the diamond drilling was completed at Roe 1, the northern most prospect area at the company's Roe Hills Project.

Elevated nickel-copper-PGE mineralisation was intersected within the core and at the base of a thick (>170 metre) lizardite serpentinised ultramafic flow which has many similarities and correlations to the Cosmos ultramafic system.

Two holes have been completed to date, confirming the existence of a thick fertile 'lizardite' ultramafic lava channel, with nickel mineralisation situated in the core and at the base of the system, constituting a growing set of multiple ultramafic pulses.

The geology is comparable to that at the Cosmos Nickel Project where the core of the thick lizardite serpentinite system contained large low-grade disseminated sulphide above the rich massive sulphide deposits which were the result of the early ultramafic pulses depositing high grade nickel sulphide mineralisation at the base and on the flanks of the ultramafic system.

This is very encouraging as the rocks at Roe 1 appear to be the fertile upstream portion of an extensive system with the potential for downstream nickel sulphide deposition.

The confirmation of multiple fertile lava channels at both ends of the 40 kilometre strike at Roe Hills increases the scope of the entire system while still conforming to the company's geological "Cabbage Leaf" model.

Four diamond drill holes across 2 cross-sections had been planned at Roe 1 totalling about 1,500 metres, with 1005.5 metres completed so far.

Drill hole RHDD0011 on the second cross-section was temporarily suspended at a depth of 290 metres above the anticipated mineralised zone due to equipment failure prior to Christmas.

This will be completed at the commencement of the next stage of drilling along with the last planned hole RHDD0012.

The holes were designed to establish geological stratigraphic control so as to bring Roe 1 in line with Talc Lake's exploration progress.

Talc Lake Prospect

Talc Lake has nickel mineralisation intersections over a continuous distance of 400 metres and recent intersections further confirm that the system is consistent with the company's "Cabbage Leaf" model.

The down plunge extension significantly expands the projects prospectivity of a major discovery as these disseminated styles of mineralisation typically lead to massive nickel sulphide accumulations downstream.

Previous intersections that defined the nickel hosting channel are:

- ROE 114: 1 metres at 3.53% nickel from 155 metres including 0.5 metres at 6.15% nickel from 155.5 metres;
- ORTL-1: 1.9 metres at 1.65% nickel from 131.55 metres;
- ORTL-1: 0.15 metres at 1.33% nickel from 222.75 metres;
- ORTL-2: 0.3 metres at 1.46% nickel from 182.8 metres;
- RHDD0001: 4.3 metres at 0.53% nickel from 211.1 metres including 0.2 metres at 2.66% nickel from 215.2 metres; and
- RHDD0002: 1 metres at 0.69% nickel from 227.64 metres.

Most importantly a potentially large scale target has been recognised in an historic Fixed Loop Electromagnetic (FLEM) survey completed over the Talc Lake area which produced the start of an anomaly on the south-eastern edge of the survey.

The Late Time response FLEM anomaly had not been previously considered due to its proximity to a larger anomaly which was historically drilled and turned out to be a sulphidic shale hosted conductor.

This newly recognised anomaly now aligns with the interpreted komatiite channel direction on the southern side of the known massive sulphur source.

This same sulphidic unit was intersected to the east of the Nickel mineralisation in RHDD0001 where the lava channel has thermally eroded into the sulphidic shale providing the sulphur source necessary for the formation of the Nickel sulphide mineralisation.

The sulphidic shale is a unique-highly conductive marker horizon and this newly defined FLEM target may be the downstream location of the massive nickel sulphide accumulation.

Technical Director Neil Hutchison will work closely with the Newexco Team to design and instigate a new High-Powered Electromagnetic survey over the lava channel area, extending the survey south-easterly to fully define the source of this EM anomaly located on the edge of the historic FLEM survey.


Diamond drilling is underway at the Roe 1 prospect where a nickel sulphide fertile lava channel has been intersected.

The company is expanding the next major stage of its exploration program to identify and drill test strategic targets along the entire 40 kilometres strike, which is part of a broader ultramafic system.

To gain some perspective, each fertile lava channel provides MPJ with an opportunity to make a nickel sulphide discovery. One of these and MPJ shares would sky-rocket.

Once the channel core is located DHEM and geological interpretation will be used to assist in the discovery of the bigger, potentially economic nickel sulphide deposits.

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