- Nimy Resources (ASX:NIM) has hit nickel copper on-site at its WA-based MONS project
- However, low grades and short intersections have caused a 25 per cent selloff in the stock today
- Those low-grade small intersections also came in at considerable depth for a microcap
- Management is bullish on the case for a widespread mineral system underground
- Shares last traded at 18 cents
Nickel exploration company Nimy Resources (ASX:NIM) has inked a new prospect on-site for its MONS project in Western Australia.
The new target area of interest is ratified by a 10-metre thick RC drill hit which assayed positive for nickel, copper and cobalt from 98 metres depth.
The company flagged a ten-metre thick intersection with nickel at 0.42 per cent; copper at 0.39 and cobalt at 0.04.
A follow-up diamond drill run returned multiple intersections to surface, though each less than 10 metres. Those diamond drill hits come from over 125 metres in depth.
Key mineralised pockets include 5.5 metres at 0.36 per cent nickel; 0.27 copper and 0.04 cobalt. All other highlighted hits were under five metres.
This, the company hopes, is early-stage evidence of a far larger system.
But shareholders will likely also be looking for higher grades. The fact the stock declined nearly 20 per cent in less than three hours of trade today supports this view.
“The extension of sulphide mineralisation including massive sulphides hosted within a mafic rock type, within a large electromagnetic anomaly … gives Nimy an excellent opportunity to discover a substantial nickel copper deposit,” NIM chief Luke Hampson said.
“The Masson prospect is a significant breakthrough for Nimy Resources as we move toward establishing the Mons Project as a fertile exploration holding.”
Whether the company can prove that in good time will likely be a key catalyst underpinning the stock’s ability to recover from today’s decline.
The company advertises a “world-class nickel endowment” on its website.
Nimy is dealing with an age-old truth that remains the quo for base metals – grades are everything.
NIM shares last traded at 18 cents.