Proto acquires German development project
THE BOURSE WHISPERER: Sydney-based Proto Resources & Investments has acquired rights over the Kiefernberg nickel-cobalt development project located in Saxony, Germany.
Proto has entered an option to purchase the Granulite Mountains licence from Deutsche Rohstoff AG.
The licence covers over 600 square kilometres and includes both known mineralised zones and the site of a historical nickel-cobalt mine.
The Granulite Mountains licence also contains several known nickel laterite mineralisation including an advanced nickel laterite development project at Kiefernberg.
Proto intends to induct the Kiefernberg project as its second nickel-cobalt development, and will use the same technology as that at the company’s flagship Barnes Hill project in Northern Tasmania which is currently in approvals.
Proto managing director Andrew Mortimer indicated the strategic significance of the acquisition to the company.
“Kiefernberg is the perfect fit for Proto, and will allow us to leverage the nickel processing technology we have been piloting for Barnes Hill into an environment marked by excellent infrastructure,” Mortimer explained in an announcement.
“Our ability to cheaply and rapidly replicate the extensive development work undertaken for Barnes Hill will be key to our plans to build nickel production tonnage over the next few years.”
Proto has already begun the process of compiling all historical geochemical results from the Kiefernberg project into a digital database.
From this the company will prepare and implement a program of targeted drilling to provide the necessary confirmatory information for it to define a JORC-compliant resource in conjunction with the extensive existing geological and exploration data.
The Kiefernberg project has undergone historic al material non-JORC compliant drilling carried out by the GDR’s former Communist Government.
These historical drill results were assayed at 0.5m intervals, with tight drill spacing of less than 30m by 30m.
The company is expectant this should allow rapid completion of the necessary geological work to define a JORC compliant resource and reserve in order to support mine planning and plant engineering.
Proto considers that Kiefernberg represents an excellent opportunity to replicate the plant that has been designed for its flagship project at Barnes Hill in Tasmania.
The initial assessment of historical drilling results has identified several high grade nickel zones that would allow the fast-tracking of the plant and suggest sound economic potential.