Nickel

Project Province JV Partner / Manager Target Type / Comments
Mt Eureka Northeastern Goldfields, Yilgarn Craton Cullen Resources Komatiite – hosted
Killaloe Southeastern Goldfields, Yillgarn Craton Matsa Resources Komatiite – hosted

Mt Eureka

(Cullen 100%)

Background

Cullen Resources Limited (Cullen) holds 100% of ~450km2 of approved tenure in the Mt Eureka Greenstone Belt in the North Eastern Goldfields of Western Australia which includes multiple targets for nickel sulphides and gold. The high nickel prospectivity of Cullen’s ground is confirmed by the discovery of nickel sulphides by Rox Resources Limited (Rox) at Camelwood and Cannonball – Musket (Fisher East Project), located a few kilometres along strike to the south of Cullen’s tenement boundary (Rox ASX release, ASX: RXL of 3/10/2013 describes the maiden mineral resource for Camelwood and ASX release of 10/1/2014 describes discoveries at Cannonball and Musket).

BHPB in a previous JV with Cullen had identified the following positive indicators for nickel sulphides:

  • Geological similarities to the productive Leinster-Mt Keith Greenstone Belt;
  • Indications of thick, prospective channel facies ultramafics from magnetic data;
  • Limited earlier exploration work in an area mostly covered (80-85%) by transported overburden;
  • Ni-Cu geochemical anomalies from earlier exploration; and
  • Occurrences of nickel sulphides in previous drilling.

BHPB also completed lag geochemistry, geophysical surveying (EM) and drilling of a number of deep diamond holes to test nickel sulphide targets (electromagnetic conductors) at the AK 47 prospect.

Further Nickel targets from BHPB work and other sources include:

  • “AK47” (0.2m @ 1.93% Ni from 140m) – where further ground EM and drilling is warranted;
  • Several VTEM and ground EM anomalies near “GBD 15” (0.5m @ 0.95% Ni) – where further RC drilling is required.

 

Killaloe

(Cullen 20%, Matsa Resources 80%)

In December 2010, Cullen and Matsa signed a farm-in agreement. Matsa can earn a 70% interest in the Killaloe Project by sole funding exploration expenditure of $500,000 within three years. Matsa has earned its interest and Cullen has elected to take a 20% Free Carried Interest (FCI) to a Decision to Mine (DTM).

Killaloe is located approximately 25 km NE of Norseman in the Eastern Goldfields of WA and covers Archaean greenstones between the Zuleika Shear and the Boulder-Lefroy Fault at the southern end of the Norseman-Wiluna Greenstone Belt. The area is highly prospective for both gold and nickel deposits.

Within the Killaloe tenement area, ~27 strike kilometres in two parallel belts of ultramafics are stratigraphically equivalent to rock units hosting the world-class Kambalda and Widgiemooltha nickel mines to the north. Previous nickel exploration (1960 to 1982) comprised only limited percussion drilling along these belts.

Exploration for massive nickel sulphides by former joint venture partners Sipa Resources International Ltd and Nickel Australia Limited included ground electromagnetic (EM) surveys, and diamond, reverse circulation and air core drilling. Twelve conductors were tested and identified either as sulphidic black shales or as barren massive sulphides.