The 82-hole reverse circulation (RC) drilling program defined high-grade mineralisation from surface, up to 44 metres thick and across an area of 1.2 kilometres by 1 kilometre.
It also confirmed significant cobalt mineralisation, up to 29 metres thick, overlapping the upper portions of the nickel zone.
Highlighted nickel assay results from the program include: 8 metres at 1.22% nickel from 33 metres; 12 metres at 1.12% from 27 metres; 44 metres at 1% from 10 metres; 7 metres at 1.38% from 11 metres; and 10 metres at 1.16% from 22 metres.
Intercepts from the discovered cobalt domain include: 10 metres at 0.14% cobalt from 8 metres; 5 metres at 0.23% from 12 metres; 5 metres at 0.18% from 24 metres; 3 metres at 0.27% from 24 metres; and 5 metres at 0.19% from 16 metres.
Distinct cobalt-rich domain
The drilling demonstrated a strong nickel domain with a consistent higher-grade nickel horizon throughout most of the deposit.
A distinct cobalt-rich domain overlaps this high-grade nickel mineralisation, similarly starting from near surface to a maximum depth of about 30 metres.
Grey Dam’s nickel-cobalt mineralisation is hosted within a highly-weathered laterite profile with the bulk of the mineralisation hosted in the upper saprolite and soft-clay portion of the profile.
The potential for a shallow low-strip-ratio open pit is considered favourable by Carnavale, subject to a suitable extraction process being evaluated.
Upcoming resource estimate
The drilling has successfully extended mineralisation in specific areas which may provide an incremental increase in resources.
It has also provided greater definition of the internal high-grade nickel and cobalt horizons, providing the opportunity for further definition of the discrete horizons in the upcoming resource estimate.
Carnavale believes the discovered mineralisation is a significant commercial development opportunity and, along with additional exploration activities, will be undertaking metallurgical and communition test work to determine an economic extraction process.
The company’s shares were up more than 11% in intraday trading.