Pre-acquisition update on MinRex's cobalt-scandium projects
MinRexResources Limited (ASX:MRR) has delivered an update on its currentpre-acquisition due diligence for three cobalt-scandium-nickel projects in NSWand WA being undertaken by a geology consultant.
Due diligencework by the geology team on the Pacific Express project in NSW is now focusedon six prospective areas for high-grade cobalt-scandium mineralisation. Provingup the region's prospectivity for cobalt-scandium mineralisation, furtherdesktop work has uncovered a 159ppm scandium assay within the now granted NSWtenement as well as a 13,200ppm cobalt assay 2.5 kilometres to the east.
MRR is alsoundertaking desktop work on the Knight and Dragon projects in WA, and indicatedthat it expects to release a preliminary report on these findings in thenear-term.
Today's updatefrom the company focuses on the promising Pacific Express project in NSW,wherein it has identified six key prospects in the project boundary, as shownbelow:
Reconcilinglegacy drilling data with geophysical aero-magnetic images across the project(from Geological Survey NSW) has confirmed and extended the six areas. The keytarget, the Pacific Highway prospect, has a legacy Indicated Resource (1.52Mt at0.83% nickel, 0.07% cobalt and 30ppm scandium) which was determined by historicJORC (1996) Resources completed under Jervois Mining.
Get the latest articles straight to your inboxkeep me postedMRR's geologyteam is reviewing the legacy drilling data for all six high-priority areas,re-orienting the focus on cobalt-scandium mineralisation (from nickel) with thefindings intended to contribute to the development of an upcoming drillingprogram.
However, it is an earlystage of this company's development and if considering this stock for yourportfolio you should take all public information into account and seekprofessional financial advice.
Exploration upside for Pacific Express
Based initialreviews by MRR's geology team, the Pacific Express project has significantexploration upside potential as far as cobalt-scandium-nickel mineralisation. Thesix high-grade priorities are each 'anomalous zones known for hosting lateritestyle mineralisation'.
This wasdetermined through MRR's current process which leverages existing legacy datafrom 15-20 years ago. That data was gathered via 506 drill holes over anenlarged area which included the Pacific Express tenement.
This resultedin the reporting of a historical total Resource reported to the JORC (1996)code of 19.2Mt at 0.63% nickel, 0.10% cobalt and 40g/t scandium. Of the sixhighly prospective areas now identified, the Pacific Highway prospect is themost significant - with proven mineralisation defined by 81 drill holes, it isthe standout candidate for closer scrutiny at this stage.
Further, the 81drill holes did not cover the extent of the underlying magnetic anomaly, which meansthe mineralisation remains open. There is potential, therefore, for theprospect to be expanded in future through exploratory drilling.
Building a new model for exploration at Pacific Express
Followingsettlement, MRR's geology team will then be able to commence building ageological model with the primary aim of estimating a JORC 2012 Resource relatingto cobalt and scandium mineralisation at Pacific Express. It should be notedthat this plan may not materialise if the legacy data proves inadequate.
Historicreporting from the area focused on nickel, and as such, cobalt and scandiumrich horizons were largely overlooked. This provides an obvious opportunity forMRR in its exploration efforts at the site now.
MinRexExecutive Director, Simon Durack commented on today's update: "The geology teamhas made solid inroads with the due diligence process, which has significantlyaided the Board's understanding of the Pacific Express project and highlightedthe potential exploration upside for cobalt and scandium mineralization.
"Movingforward, the Board looks forward to receiving preliminary geological views onthe WA projects and final desktop review on the Pacific Express tenement," hesaid.
Next steps for MRR
According tothe company, the near-term priorities for the Pacific Express project are tocomplete the final desktop review, and develop a new geological model for thePacific Express tenement - provided the acquisition completes.
Beyond the NSWprojects, MRR is conducting a desktop review of the two WA projects, the Knightand Dragon projects, and expects to release a preliminary report as soon aspossible.
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