Botswana Metals (ASX:BML) has discovered two untested conductors that have the potential to add to known nickel mineralisation at the adjacent Maibele North orebody in Botswana.
Shares in the company are expected to trade higher on the news.
Partner BCL Limited has commenced ground EM surveys along strike from Maibele North and has also initiated a drilling program designed to intersect ore for metallurgical testing.
Maibele North has potential for cash flow in less than a year given its location just 55 kilometres from BCL’s smelter, which places it within a relatively inexpensive trucking distance, and its hosting the same geology and mineralisation as BCL is currently mining.
A JORC Resource report is expected shortly, which will be followed by a Scoping Study conducted by independent consultants MSA of South Africa.
Downhole Electromagnetic Survey
The two conductors were identified from a DHEM survey program undertaken in February 2015, which showed a response indicative of massive sulphides in the hangingwall, and along strike of, the Maibele North mineralisation.
This program was designed to locate deeper conductive anomalies that might represent continuation of the Maibele North nickel-sulphide mineralisation.
Six holes were successfully surveyed and a seventh was abandoned due to shallow blockages.
Spectral Geophysics will be conducting a Time Domain Electromagnetic (SQUID) survey over the northeast, along strike from the existing mineralisation and the southeast end of Maibele North.
This will resolve the deeply plunging conductors on both ends poorly identified by other geophysics methods.
BCL Limited has also commenced a series of 3 reverse circulation drill holes designed to provide a large sample for metallurgical test work of the Maibele North ore.
All holes are vertical and have been targeted to intersect the thickest sections of the orebody to provide sufficient sample for this test work.
These holes hole will provide a good representation of the variation in the mineralisation through the orebody and test deep TDEM conductors from previous surveys.
Joint venture details
BCL is a local nickel mining and smelting company wholly-owned by the Botswanan government.
Under the joint venture agreement, it can spend an initial A$4 million on a drilling program to earn 40% of Maibele North (PL 110/94), Mokoswane (PL 111/94) and Takane (PL 54/98).
BCL has the option to continue to fund the projects to the completion of a Bankable Feasibility Study to earn a 70% interest.
At that point BCL will have the off-take rights at commercial prices, to any ore mined.
It is planned to truck ore to the BCL smelter operations at Selebi Phikwe for processing, which is situated 55 kilometres to the southwest of Botswana Metals’ projects.
Botswana Metals will retain a 30% interest after the BFS is completed, at which time the management of the projects will be transferred to BCL.
Botswana Metals has discovered two untested conductors that have the potential to increases nickel resources at its Maibele North project.
The company is looking to monetise the project within a year.
MSA is due to release a JORC 2012 resource estimate and will follow up with a Scoping Study.
The company will then target having a mining license in place by the end of the year.
Proactive Investors believes that Botswana Metals remains lightly capitalised at circa $10 million.
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