TG Metals Report High Grade Nickel at Lake Johnston

6 September 2023 13:18
AdobeStock Mining Gold Online

TG Metals (ASX:TG6) have announced the results from phase one of its aircore drill program conducted in August at the Lake Johnston Project, reporting that the majority of the drill holes encountered showed high grade mineralisation.

High-Grade Intercepts

The drilling occurred along the Burmeister nickel laterite deposit and yielded numerous high grade intercepts of nickel. The Company outlined several highlights within its announcement today which included:

  • TGAC0027 from 18m to 31m, 13m @ 1.12% Ni
  • TGAC0024 from 17m to 23m, 6m @ 1.27% Ni
  • TGAC0017 from 20m to 22m, 2m @ 1.43% Ni
  • TGAC0011 from 28m to 29m, 1m @ 3.23% Ni

Figure 1: Simplified Geology of the Lake Johnston Project with prospect locations Datum: AMG Zone 51 (GDA94). The dashed outline is the drill location.

The goal of phase one of the drilling program was to ascertain whether the deposit contained high grade potential direct trucking ore over 1% nickel, with the Company also aiming to gain enough samples to conduct metallurgical testing.

The drilling campaign covered a substantial 967-metre distance, encompassing a total of 36 widely spaced holes. This strategic approach was employed to efficiently assess a vast expanse of the tenement, aiming to identify nickel laterite mineralisation and facilitate the planning of the second phase of the program, with phase two involving infill drilling to delineate the continuity of mineralisation.

TG Metals are pleased with the results yielded thus far, notably the thickness of the mineralised intersections at 2 metres and greater, and the results returned from hole TGAC0011 which uncovered a very high grade intercept of 3.23% Ni from 28 metres to 29 metres downhole (vertical drill hole).

It reported nine of the 36 holes encountered high grade nickel mineralisation above 1% nickel and 23 drill holes returned significant mineralisation above 0.5% nickel.

Future Outlook

The Company initiated its exploration endeavours in the Lake Johnston Greenstone Belt in 2022 and has made substantial progress since the initial target identification.

TG Metals anticipates that the mineralisation may cease to the east of the ultramafic footwall boundary, although this area has not yet been tested.

During the second phase of the program, the Company will conduct additional infill drilling to precisely ascertain the extent and consistency of the mineralisation.

Additionally, a thorough review of the metallurgical testwork on the collected drill samples is imperative to determine the feasibility of implementing on-site beneficiation processing at Lake Johnston.

Simultaneously, RC drilling operations on the nickel sulphide targets have already commenced and will continue in preparation for phase two. The permitting process for the initial drilling on the lithium soil targets is in its final stages of assessment, with drilling set to begin once the Program of Works receives approval.

David Selfe, CEO of TG Metals, stated that the primary purpose of the initial aircore drilling program was to assess the potential presence of high-grade nickel within the laterite profile.

“The results have exceeded our expectations and yielded valuable insights into factors influencing the +1% high grade nickel laterite mineralisation,” he said.

“This mineralisation has the potential to serve as direct feed for third party laterite nickel processing facilities.”

“We are also keen to potentially take advantage of the extensive lower grade material, with the aim of identifying an initial resource that may perform favourably to an on-site beneficiation up-grade.”

TG6’s Australian Stock Exchange-listed is currently selling at $0.12 (1:15pm UTC+ 8 hours).

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