Field work performed on the subject tenement during licence Year 8 included the conduct of Aboriginal heritage clearance surveys by the APY Traditional Owners to grant access for geological mapping and the acquisition of a trial seismic survey, as...
Field work performed on the subject tenement during licence Year 8 included the conduct of Aboriginal heritage clearance surveys by the APY Traditional Owners to grant access for geological mapping and the acquisition of a trial seismic survey, as well as to give approval for creating bulldozed drill traverses and off-road access tracks prior to the execution of an exploratory RC drilling program. The clearance surveys were conducted in stages during March, April and September 2010. During April-May 2010, a trial low-energy hammer sourced seismic survey was completed for the licence JV partners over the known nickel laterite occurrences in the Claude Hills area, and their extensions to the west, to determine its effectiveness in outlining the thickness of the local weathered sequence overlying ultramafic bedrock. 25 lines of seismic data were acquired on EL 3932. The survey crew performed their tasks well throughout the program given the difficult and varied field conditions, but equipment and software failures and communications difficulties meant that ultimately no high quality data was able to be supplied. Problems associated with the survey were many: - the Toughbook computer supplied to collect data suffered program problems and could not be used; - the laptop computer used as a replacement had limited battery life, and an inverter had to be set up to supply the computer from the 12V vehicle battery; - one of the geophone cables was driven over and damaged during the survey, and a hammer trigger cable extension was severed; and - Dr Josef Holzschuh, who was contracted to interpret the seismic data, attempted to do this while employed in his full-time job with the government. Because he was in the field on a separate job for the entire duration of the work, interpretations of data were very slow in delivery. The survey data showed that low energy seismic waves had great difficulty in penetrating the surface sand and clay, and the presence of numerous horizontal silcrete layers within the weathered zone produced complex reflection and refraction patterns which were impossible to interpret. The survey was not successful in delimiting the contours of the fresh bedrock surface below the weathered layer. Historic drilling carried out in the Claude Hills area over the period 1955-1962 by Southwest Mining and by the SA Department of Mines and Energy had discovered appreciable thicknesses of nickel-bearing lateritic material in the area now covered by EL 3932. Intersections included 25.8 m @ 1.09% Ni and 0.122% Co, 27.4 m @ 1.12% Ni and 0.191% Co, and 45.7 m @ 1.51% Ni. More recently, exploratory drilling done by Metals X in 2008 in the adjacent EL 3555 had found additional comparable intersections of nickeliferous laterites. The nickel-bearing zone was known to extend along the southern side of the Claude Hills, and therefore a program of 97 RC drill holes within EL 3932 was planned by Metals X to test the extent and continuity of the mineralisation. This drilling occurred in the period June-July 2010, when 97 vertical RC holes were completed along 19 traverses for a total penetration of 4752 m. Spacing between traverses on the eastern part of the drilled area was 400 m, but this separation was increased to 800 m on the western end of drill coverage due to a lack of lateritic material. 2254 drill cuttings samples were assayed by XRF for whole rock composition plus nickel, cobalt, chromium, copper and zinc. Nickel-bearing lateritic material was found occuring in two zones. The eastern zone is about 400 m long, and is a continuation of the mineralisation discovered in EL 3555 in 2008. The western zone is about 2 km long, and lies along the southern flanks of the Claude Hills. It is thought presently that the two mineralised zones can soon be proven via JORC-compliant calculations as a small laterite nickel resource, since they are up to 50 m thick and contain up to ~1% Ni and ~0.1 % Co. During licence Year 9, field work included the conduct of Aboriginal heritage clearance surveys, geological mapping and sampling, and planning to acquire an extensive airborne electromagnetic survey over the tenement. Protracted clearance discussions with Traditional Owners and APY caused delays in commencing the geophysical and proposed new RC drilling works. Geological mapping was carried out over the Scarface Lineament, south-east of Kalka, and 16 rock chip samples were collected for assaying. The area contains a south-west dipping sequence of differentiated Giles Complex rocks, with weathered dunite at the base (in the NE) giving way to pyroxenite then gabbronorite to the SW. The weathered dunite is represented by scattered outcrops of jasperoidal laterite and associated magnesite with secondary silica. It is possible that the sand and alluvium - covered plains to the NE are partly underlain by weathered dunites. An RC drilling campaign was planned to test this projected trend of the weathered dunite. A preliminary, inferred resource of 33,277,475 t @ 0.81% Ni and 0.07% Co above a 0.50% Ni cut-off grade was calculated for the Claude Hills (Yapan) nickel oxide laterite deposit. This potentially economic deposit is contained approximately 50% within EL 3932 and 50% within EL 4751 Claude Hills (Austral Nickel 100%). It is similar in mineralogical character to the giant Wingellina deposit which lies immediately to the west of EL 3932 in Western Australia, but it has a lower Fe2O3 content (39%), lower Al2O3 content, and higher SiO2 content. The MgO content is similar to at Wingellina. Elsewhere, exploration drilling carried out by Austral Nickel on heritage-cleared areas in the Pipalyatjara calcrete area adjacent to EL 3932 has outlined a potential calcrete (extractive construction material) resource which extends by ~50% onto EL 3932. During licence Year 10, the only activity permitted by APY and the traditional owners was the flying of the long delayed fixed-wing airborne EM (SPECTREM) survey, during January-February 2012, which covered almost all of the mafic-ultramafic rock sequences in ELs 3932 and 4751 (Claude Hills). A total 3440 line km of profiles were acquired along 200 north-south flight lines spaced 250 m apart, using a 90 m nominal sensor elevation above the ground surface. The survey contractor provided a basic interpretation of the AEM data, identifying four anomalies of interest. Core Geophysics carried out a re-calculation and plotting of the conductivity-depth sections, and produced sectional and plan images for Austral Nickel and its JV partners to study to determine if additional anomalies are present. 15 anomalies were identified that were considered worthy of ground checking. During licence Year 11, on renewed EL 5184 covering the same total area as previously, delays to Austral Nickel's planned activities were again experienced, both in obtaining aboriginal heritage work area clearances through APY and the traditional owners, plus the frustrating six months delay in the SA Government's granting of this replacement tenement. The only major work possible to do in the reporting period was the acquisition in May-June 2013 of an 7.8 line km fixed loop ground TEM survey over three conductive bedrock targets (M3, M4 and M5) interpreted from the SPECTREM AEM data. 167 stations were read along eleven north-south lines, using a pair of transmitter loops. Four significant northwestwards-dipping moderately to highly conductive anomalies of varying widths were defined in the Ilitjata area, 7 km south of Pipalyatjara, and all were recommended for drilling. On 14/8/2013, RTE agreed to sell its 100% interest in the tenement to Austral Nickel. During licence Year 12, surface soil geochemical sampling (21 samples) was conducted over the Ilitjata EM anomaly area. Laboratory assaying for a massive sulphide pathfinder nine-element suite did not return any anomalous base metal or gold values. Preparations were made in February-March 2014 to drill two diamond holes at Ilitjata. Subsequently, one fully HQ/NQ2 diamond cored vertical hole MDDD001, programmed to test EM anomaly MTD1-1a, was drilled to TD 153.05 m in early March, and intersected: quartz-feldspar-garnet gneiss to 43 m; then graphitic schist to 47 m; then strongly foliated quartz-feldspar-biotite schist with disseminated to semi-massive pyrrhotite-pyrite to 68 m; then quartz-feldspar-garnet gneiss with sporadic small disseminated sulphide inclusions to TD. The minor graphite and the sulphides were regarded as sufficient to explain the EM anomaly. No base metal sulphides were noted. Later laboratory assaying of visible sulphide-bearing intervals in the drill core for a multi-element suite did not return any base metal or precious metal anomalies. These results from MDDD001, coupled with results seen from two other Austral Nickel diamond drillholes completed nearby on EL 4751 Claude Hills, showed that the EM anomalies in the area were caused by a combination of massive to semi-massive pyrrhotite and graphitic metasediments. The planned second hole for EL 5184 was cancelled. During licence Year 13, the agreed full sale of EL 5184 to Austral Nickel was finalised, and on 25/9/2014 it received the consent of the SA Minister of Mines. A programme of exploratory shallow RC drilling of the Scarface laterite zone was able to be performed in December 2014, when 14 vertical open holes were completed, each to 40 m depth, ending in felsic gneiss. Little limonitic material was intersected by the drilling, and laboratory assaying of 2-metre composite drill cuttings samples gave disappointing results, with no nickeliferous material being detected. The likelihood of finding significant economic nickel mineralisation at the Scarface Zone thus appeared remote. Three samples of standing groundwater were retrieved from registered water bores MDRC0054, MDRC0077 and MDRC0093 located in the north of the licence area near the NT border: these holes from the licensee's previous drilling will remain unplugged long-term, and have been retained as water monitoring stations. The samples were submitted for water analysis, and had TDS contents ranging from 681 to 2050 mg/l (avg: 1280 mg/l) and pH values between 7.74 and 8.21 (avg: 7.91). Measurements of ground water levels showed little variation from measurements taken in previous years. During licence Year 14, no work was done. The effects within the community of the sudden passing of the APY Chairperson late in the first half of 2016 will impact significantly on the licensee’s continued efforts to engage with APY to formalise a mining and development agreement for the nickel-cobalt, calcrete and water resources that the company has outlined. Also, continuing depressed market prices for nickel and for cobalt have resulted in a decision to curtail significant exploration expenditure on the tenement for the immediate future. However, Austral Nickel remains committed to keeping on its staff presence locally at its nearby Wingellina exploration base camp, in order to maintain personal contact with the Traditional Owners at the Pipalyatjara and Kalka communities, and to be able to continue to progress other works associated with the Wingellina Nickel Project. During licence Year 15, no field work was undertaken on EL5184 during the current reporting year. The continued depressed market conditions for nickel have also resulted in the Company curtailing further significant exploration expenditures on the tenement. A total of 134 square km of tenement ground was relinquished from EL 5184 on 23/9/2017 [ENV09631 CNO:2042999]. Tenure of a ~28.4% reduced licence area at Mount Davies has subsequently been renewed by Austral Nickel on 24/9/2017 for a fourth 5-year licence term, as EL 6240. During licence Year 16 to 23rd November 2018, on renewed EL 6240, no work was again undertaken on the tenement due to ongoing administrative issues and delays with the APY Executive.