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Resources and Energy (ASX:REZ) confirms magmatic nickel sulphides at Springfield

ASX News, Mining
ASX:REZ      MCAP $17.39M
11 January 2022 13:35 (AEDT)

Mining ore on the top flitch of East Cut back. Source: Resources and Energy Group

Resources and Energy (REZ) has confirmed magmatic nickel sulphides at the Springfield prospect, which is part of the broader East Menzies project in Western Australia.

This marks the outcome of a petrological and lithogeochemical study which was carried out on three drill holes within a 600-metre strike length. The holes were selected from nine reverse circulation (RC) holes completed at the Springfield prospect last year.

The studies aimed to follow up on nickel, cobalt, chromium, zinc, copper and molybdenum results. The results included one metre at 1.78 per cent nickel, 0.21 per cent chromium, 5 per cent sulphur, 269 parts per million (ppm) molybdenum and 245 ppm copper from 98 metres.

According to REZ, seven of the samples from two of the holes examined contained recrystallised nickel iron sulphides of primary magmatic origin.

The nickel iron sulphides were identified as pentlandite (a nickel iron sulphide mineral), vilarite and smythite (supergene nickel and iron sulphide minerals) and gersdorffite (nickel arsenic sulphide mineral). These minerals were present either in the form of discrete grains and blebs, and in one sample, in net-textures associated with pyrrhotite.

Resources and Energy said confirming magmatic nickel iron sulphide mineralisation is a “significant and material” exploration result for the project area. It also indicates the possibility that ultramafics and nearby lithologies may host larger accumulations of disseminated and massive sulphides.

The company is currently waiting to receive multi-element, gold and platinum group element assays from drilling in December last year. The results are expected within the next few weeks and will help REZ to develop an exploration program at Springfield.

REZ shares were down 3.13 per cent to trade at 6.2 cents at 1:25 pm AEDT.

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