GBR are looking for the Nickel rich feeder system to Mt Venn. As written about previously, the exploration model is that the Eastern Mafic may host the early stage, nickel rich feeder system to Mt Venn (copper-rich part of the system). Today they took a significant step in supporting their model, with the initial 7 initial holes they have identified a large occurrence of massive sulphides and both chalcopyrite (copper sulphide) and pentlandite (nickel sulphide). Announcement.
Why is the market so excited? (+25% $0.49 and turned over c5m shares already today).
It's exciting because it shows GBR are drilling into a live system, which has the potential for scale, the right geological setting and in one of the most heavily mineralised parts of the world. Add to that Diggers and Dealers is on in Kalgoorlie (6-8th August), the nickel space is heating up generally, then it looks like GBR should pack a few more boxes of pens for Diggers. Some points from the announcement
- Big positive is evidence the conductors are not from other sediments (eg black shales)
- Several conductors showing sulphides as modelled. (Conductors behaving as they had hoped)
- The occurrence of pentlandite supports the view that they are in the nickel-rich part of the system.
- This early drilling was aimed at increasing their understanding of their model (conductor plates/surface geochem). Some holes did not match their expectations of conductors and are being remodelled, with new positioning for follow up drilling.
With only 7 holes over several Sq KM's of ground, we must remember this is the first round of scout drilling. As assays return (2-3 weeks away) and they re-test conductors with DHEM over the next week or two, I hope there is a greater understanding of where to target next.
GBR is likely to be closely watched, and further results highly anticipated.
My earlier note can be read here.
Disclosure - The author owns shares in GBR.ASX. See disclosures below.
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