Grey Dam Nickel-Cobalt Project


Carnavale (“Company”) owns 100% of the Grey Dam Ni-Co Project (“Project”), located near Kurnalpi approximately 90km northeast of Kalgoorlie, West Australia. The project is considered prospective for shallow laterite Ni-Co as well as deeper Ni-Cu-Co sulphide and structurally controlled gold deposits.

The Project has an existing 2004 Ni-Co JORC Mineral Resource, defined in 2009 by a previous owner, which Carnavale intends to update to JORC 2012 compliance based on positive drill results received from the July 2018 infill extensional RC drilling programme. 

Grey Dam Ni-Co Project Location
Figure 1: Grey Dam Ni-Co Project Location

July 2018 Infill Extensional RC Drilling Programme

Carnavale’s recent RC drilling programme confirmed significant and shallow laterite Ni and Co mineralisation

  • Strong Ni and Co mineralisation defined from surface, up to 44m thick and across an area of 1.2km x 1.0km
  • Significant Co mineralisation up to 29m thick occurs overlapping the upper portions of the Ni zone
  • Discrete Co horizon generally occurs near surface and coincides with strong high-grade Ni (>1.0% Ni) zones

Selected high-grade new drill intercepts for Ni and Co domains are shown in the below table:

 

 Nickel (Ni) domain

Cobalt (Co) domain

8m @ 1.22% Ni from 33m

10m @ 0.14% Co from 8m

12m @ 1.12% Ni from 27m

5m @ 0.23% Co from 12m

44m @ 1.00% Ni from 10m

5m @ 0.18% Co from 24m

7m @ 1.38% Ni from 11m

3m @ 0.27% Co from 24m

10m @ 1.16% Ni from 22m

5m @ 0.19% Co from 16m

16m @ 1.06% Ni from 34m

3m @ 0.15% Co from 24m

19m @ 1.08% Ni from 16m

12m @ 0.14% Co from 23m

26m @ 1.05% Ni from 15m

7m @ 0.14% Co from 15m

19m @ 1.25% Ni from 20m

3m @ 0.26% Co from 13m

15m @ 1.10% Ni from 15m

14m @ 0.16% Co from 10m

17m @ 1.13% Ni from 11m

8m @ 0.15% Co from 16m

25m @ 1.16% Ni from 10m

5m @ 0.22% Co from 16m

23m @ 1.12% Ni from 13m

3m @ 0.23% Co from 5m

 

The RC drilling has demonstrated a strong Ni domain up to 40m thick from surface. Internal to this Ni domain, higher grade Ni (>1.0% Ni) forms a consistent and strong horizon throughout most of the deposit. Overlapping this high-grade Ni domain, is a distinct Co rich domain similarly commencing from near surface to a maximum depth of approximately 30m. Figure 2 is an example of the overall Ni domain, internal high-grade Ni zone and overlapping Co domain.


Figure 2: Grey Dam Section
Figure 2: Section showing typical broad Ni domain (green), internal high-grade Ni intercepts (pink) and overlapping Co domain (fawn)


The Ni-Co mineralisation is hosted within the 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 subject to a suitable extraction process being evaluated. 

 

The previous resource area (yellow area) is defined in Figure 3 and highlights the new infill RC drill hole locations and limit of anomalous Ni and Co mineralisation. The drilling has successfully extended mineralisation in specific areas which may provide an incremental increase in resources. More importantly, the new drilling provides greater definition of the internal high-grade Ni and Co horizons and provides the opportunity for increased definition of the discrete horizons in the planned new resource estimate.


Picture1
Figure 3: Drill hole location plan showing extent of Ni and Co mineralisation relative to previous resource area


Planned Future Work Programmes

Carnavale considers there to be a significant body of shallow laterite Ni-Co mineralisation at Grey Dam with further exploration upside. The strong Ni and Co mineralisation is considered to represent a significant commercial development opportunity, subject to defining a suitable low-cost mining operation and processing facility. 

Future work programmes include:

  • Mineral Resource Estimate to JORC 2012 compliance
  • Metallurgical and communition test work on the mineralisation to determine possible processing pathways
  • Economic scoping study, subject to positive metallurgical test results

The Project is also prospective for deeper sulphide hosted Ni-Cu-Co mineralisation in fresh bedrock and hosts over 4km of prospective ultramafic sequence which requires further assessment. 

Future work programmes include:

  • Assessment of past exploration data, including geophysics
  • Potential new EM geophysical survey targeting specific drill targets
  • Drill testing of priority targets




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