Australian Vanadium Ltd (ASX:AVL) has fielded highly anomalous copper with coincident PGE anomalism from diamond drilling at the Coates Nickel-Copper-PGE Project, 80 kilometres northeast of Perth in Western Australia.
The results received for 169.6 metres of diamond core drilling completed at Coates in May 2022 demonstrate coincident elevated copper, nickel, palladium and platinum.
Standout assays include:
- 3.25 metres at 0.15% copper, 757ppm nickel, 40ppb palladium and 27ppb platimum from 81.15 metres;
- 0.6 metres at 0.65% copper and 180ppm nickel from 115.5 metres, including 0.35 metres at 1.02% copper, 180ppm nickel and 5ppb platinum from 115.5 metres;
- 0.15 metres at 0.11% copper, 1,000ppm nickel, 25ppb palladium and 20ppb platinum from 114.55 metres;
- 0.3 metres at 0.05% copper and 1,020ppm nickel from 129.2 metres; and
- 1.85 metres at 40ppb palladium and 51ppb platinum from 96.15 metres.
Drilling followed a successful SkyTEM Airborne Electromagnetic (AEM) survey which identified three conductors, with the largest having a strike length of 1,900 metres, situated parallel to a magnetic high, topographic low on the project.
Important phase of discovery
AVL managing director Vincent Algar said: “AVL is pleased to have completed this first important phase of discovery at Coates.
“The AVL team, with the support of the CSIRO Nickel Indicator team, is processing the diamond core and based on the visual and RC findings, is strongly encouraged by the first pass anomalism identified."
Drill program
An 11-hole program of reverse circulation (RC) pre-collar and diamond tail drilling was undertaken, with all pre-collars completed for 840.6 metres of RC.
Partial completion of the diamond drilling portion of the project was achieved, with 169.6 metres of diamond coring over three holes.
Despite being stopped early due to technical drilling issues, the program as completed to date provides a significant section of geochemical samples from the drill holes.
Importantly, the core from the program is being used in CSIRO nickel indicator mineral study with phase 1 to be complete by the end of 2022.
Proposed divestment
AVL signed an option agreement with Mining Green Metals in May for MGM to acquire a 100% interest in the Coates Project.
This is subject to MGM listing on the ASX in 2023.
The option agreement includes the company’s Nowthanna Hill uranium project and provides AVL with five million fully paid ordinary shares in MGM, a 0.75% net smelter return royalty from the value of the minerals mined (Coates Project) and a cash payment of $100,000.
“Upon MGM’s successful listing, AVL shareholders will continue to hold a stake in further discovery in this very exciting region, heralded by the identification of Julimar and other projects," Algar said.
“With AVL’s focus firmly on the development of the Australian Vanadium Project at Gabanintha, the incoming MGM team will be able to dedicate the significant focus and resources required for the Coates project.
“The suite of minerals discovered at Coates is currently in high and growing demand.”