Strategic Elements Discovers Sulphide Mineralisation In South Island Of New Zealand

Strategic Elements (ASX: SOR) has identified significant sulphide mineralisation at the wholly owned Mandamus project in New Zealand, which is in Canterbury on the South Island.

In reconnaissance work while scouting access roads, Strategic identified two zones of sulphide mineralisation with up to 5% sulfide content in altered rocks outcropping next to a farm track.

Initial assay results have shown elevated Silver and Tellurium.

There has been no previous exploration of the project.

Strategic should be highly encouraged by the initial results, as it is unusual to have such a high proportion of sulphides in these rock types, being syenite and trachyte, as sulphides are invariably associated with precious metal deposits.

Charles Murphy, managing director, commented on the discovery: "Intrusions host some of the world's largest mineral deposits; however they are usually buried and require geophysics to discover.

"The belief is that New Zealand is prospective for intrusive related mineralisation, and discoveries have been impacted by a previous lack of exploration and geophysics. Although Mandamus is at an early stage we are pleased with the results from the reconnaissance work".

Initial results

Initial assay results have shown elevated silver and tellurium, with a photomicrograph identifying a possible telluride, which Strategic considers could be hessite - a silver telluride mineral.

The next exploration steps include a co-ordinated sampling program to confirm the extent of sulphide mineralisation and existence of hessite.

Strategic was originally targeting rare metal at Mandamus which remains valid - and is yet to be tested, with the company the exploration program to incorporate sulphide mineralisation.

This will include; Pan con sampling of the main creeks draining the intrusive complex to test for both rare and precious metal mineralisation; Coverage of the entire intrusive complex and rock chip sampling of all areas of interest; A geophysical survey (magnetics or IP) if warranted; and drilling of any target areas.

Sulphides in East Coast Intrusions

Academic reports indicate that the intrusive rocks at Mandamus and the ultramafic intrusion at the recently lodged Blue Mountain project are correlated geochemically and formed around the same time.

At both projects, magma intruded up through the earth's crust along the same zone of crustal weakness. Importantly, significant sulphide mineralisation has now been identified at both of these north-east coast intrusive complexes.

Analysis

Strategic holds $3.4 million in cash at quarter end, and a market cap. of less than $2 million. The original target for rare metal mineralization at Mandamus is yet to be tested, however the exploration program has been adjusted accordingly to incorporate sulphide mineralization. It would not take alot to set this valuation alight.

Proactive Investors is a market leader in the investment news space, providing ASX "Small and Mid-cap" company news, research reports, StockTube videos and One2One Investor Forums.