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- NickelX (NKL) encounters a 153-metre-wide zone of sulphides in its first diamond hole at its Cosmos South project in Western Australia
- The company has completed a 1500-metre drilling program to test electromagnetic (EM) conductors at the CS1 target
- The first hole intersected multiple zones of various sulphides, and NickelX believes the massive sulphides are the source of the EM response targeted at CS1
- While nickel wasn’t detected in the first hole, there are some similarities to the nearby Bellevue gold mine’s geology and mineralisation, and, as such, NickelX will assay the sulphide-bearing intervals for gold
- NickelX shares are down 25.93 per cent to trade at 9.7 cents at 1:46 pm AEDT
Shares in NickelX (NKL) have nosedived after the company reported early results from drilling at its Cosmos South project in Western Australia.
The company encountered a 153-metre-wide zone of sulphides in its first diamond drill hole at the project, but portable x-ray fluorescence (pXRF) did not detect any nickel in the sulphide assemblages.
This hole was completed as part of the company’s maiden 1500-metre diamond drilling program at Cosmos South. The program tested electromagnetic (EM) conductors at the CS1 target, which extends for 565 metres of strike and 850 metres at depth.
NickelX said it intersected multiple zones of stringer, vein, semi-massive and massive breccia sulphides up to a 20-metre core width between downhole depths from 334 to 487 metres.
The company believes the massive sulphides intersected are the source of the “highly conductive” EM response targeted at the CS1 target and may account for the magnetic anomaly due to the massive pyrrhotite content.
While pXRF analysis didn’t detect nickel within the sulphides, the host geology and sulphide composition and sulphide-quartz breccia matrix habit encountered are reportedly similar to the nearby Bellevue gold mine’s host geology and mineralisation. As a result, NickelX will assay the sulphide-bearing intervals for gold.
The hole was completed at 492.5 metres, and the company will continue to evaluate the results and proceed to the next phases of work.
NickelX shares were down 25.93 per cent to trade at 9.7 cents at 1:46 pm AEDT.
