West Lynn and Woodsreef Projects (NSW)
West Lynn Nickel Cobalt Project (100sq.km)
The West Lynn Nickel-Cobalt Project (EL8631) includes an Exploration Target of 15-30Mt @ 0.7-0.9% Ni, 0.05-0.07% Co that is based on a previous JORC 2004 resource (Jervois Mining Ltd) and an Alchemy in-house resource estimate that used previous Anaconda Nickel and Jervois Mining drilling information including 105 Aircore and 29 RC drill holes totalling 6,300m.
Note: The potential quantity and grade of the exploration target is conceptual in nature and there has been insufficient exploration to estimate a mineral resource and it is uncertain if further exploration will result in the estimation of a mineral resource.
Discerning features of the West Lynn Project (Figure 3a):
• 6km from Nyngan railway line linked to Sydney & Newcastle
• 13km from Nyngan township (power & labour)
• 11km from Scandium International Mining (TSX: SCY – MCap. $52M) Nyngan Sc Project (May 2016 positive NI43-101 Feasibility – 17Mt @ 235ppm Sc)
• Geology, mineralogy and metal content (Ni-Co-Al-Fe) very similar to Homeville deposit (40km south) – Collerina Cobalt Ltd (ASX: CLL – MCap. $61M)
• Potential to produce High Purity Alumina (HPA)
• Low Fe content (~19%) compared to Ni-Co laterite deposits which may eliminate the need for high pressure acid leach processing
• Limited scandium (Sc) assays – pulps from previous drilling have been obtained for selective Sc analysis
The exploration licence covers a folded, highly magnetic, 22km long serpentinite unit (the metal source), with Ni-Co-Al concentrating in the weathered zone above fresh rock (Figure 3b). The previous Jervois resource only covers approximately 50% of the magnetic high associated with the serpentinite unit.
Woodsreef Nickel-Cobalt-Copper-Gold Project (281sq.km)
Exploration licence application (EL8711) is located 35km north of Tamworth, NSW, and covers an area of 281km2 within the New England Fold Belt. The licence encompasses a 34km long section of the Peel Fault, which is recognised as a regional thrust system that hosts intrusive serpentinites and separates the Woolomin Beds and Permian granites to the east from the Tamworth Belt to the west. The principal targets in the region are vein hosted orogenic gold and copper mineralisation hosted by silica-carbonate altered serpentinites located on or adjacent to the Peel Fault, and cobalt, chromite, platinoid, and nickel sulphide targets associated with composite/layered ultramafic intrusives within the licence.
Many old gold and copper occurrences exist within the area (Figure 9), and previous rock chip sampling by Serpentine Minerals NL within the licence area has returned anomalous nickel values up to 0.77% Ni and copper values up to 3.4% Cu (refer to DIGS report R00024733). Some significant Co-Ni soil anomalies have been generated in the northern part of the licence that warrant drilling (Figure 9), along with various other Co-Ni and gold in stream sediment sampling anomalies in the southern and central areas respectively (Figures 9 and 10). No previous drilling has been conducted within the licence area. The licence is located over sparsely populated freehold farm land.