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Constellation Resources (ASX:CR1) shares nosedive on completion of initial Fraser Range drilling

ASX News, Mining
ASX:CR1      MCAP $11.03M
23 November 2021 13:23 (AEDT)

Air-core drill samples in the Fraser Range. Source: Constellation Resources

Constellation Resources (CR1) has completed a maiden diamond drilling program at the Eyre South prospect within its Orpheus project in the Fraser Range of Western Australia.

Shares in the company have tanked by up to 35 per cent by mid-afternoon trading.

Two diamond holes were completed to test beneath a thick continuous, northwest-trending regolith anomaly.

From this work, the company said trace levels of magmatic nickel and copper sulphides have been encountered over several intervals, hosted in thick units of olivine bearing pyroxenites and gabbronorites.

Additionally, zones of polyphase iron, copper and nickel sulphide have been noted below previous air-core drilling, which the company said indicates greater nickel prospectivity of the Eyre anomaly.

Downhole electromagnetic surveys were also undertaken in both holes, however no clear or well-defined bedrock anomalies were detected.

Core samples have been submitted to the laboratory for assay and the company expects results by the March 2022 quarter.

Once received, the results will assist in refining future targets where CR1 hopes to find economic accumulations of nickel sulphide.

The company is also planning to undertake further infill air-core drilling programs at the Greater Eyre and Wylie anomalies to achieve drill densities down to 50-metre centres.

With cash reserves of $4.9 million, Constellation said it is well-funded to undertake the follow-up activities, as well as further infill air-core programs at the Greater Eyre and Wylie anomalies.

Shares were trading 31.1 per cent lower at 25.5 cents at 12:34 pm AEDT.

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