Desert Mines and Metals continues exploration of Camel Hills JV

THE BOURSE WHISPERER: Exploration work being conducted by Desert Mines and Metals (ASX:DSN) is targeting massive nickel-copper sulphide deposits in the north-western Yilgarn Craton of Central Western Australia.

The company is working on the Camel Hills Joint Venture tenements (Aurora Minerals ASX:ARM 40 per cent).

The tenements include two previously known but undrilled intrusives, where Desert Mines said recent exploration has discovered three additional plugs.

 

Camel Hills – prospecting and drilling targets. Source: Company announcement

 

The company has overcome poor outcrop and extensive laterite cover at Camel Hills by using aeromagnetics to identify potential intrusives.

This was followed up by ground prospecting and sampling, which discovered gossanous or mineralised outcrop (Far West and 3D targets) while Electromagnetic (EM) geophysical surveys identified the Far West, 3D, as well as CN2 and Innouendy targets for subsequent drill-testing.

Rock-chip samples of gossanous and lateritic surface material from Far West and 3D assayed up to 5.2 per cent chromium, 4260 parts per million nickel, 818 parts per million copper and 1920 parts per million zinc, with anomalous platinum (29 parts per billion) and palladium (14ppb).

A soil sampling program in 2010 confirmed the presence of ultramafic intrusive and highlighted chromium-nickel-copper anomalies as indicators of potential sulphide mineralisation.

“To follow up on unresolved EM conductors at Innouendy, Desert has commissioned a down-hole and ground EM survey, which is expected to resolve discrete targets for drilling,” Desert Mines and Metals said in its announcement to the Australian Securities Exchange.

“Depending on success, follow-up ground EM and drilling at Far West, 3D and CN2 is planned.”

Under the terms of the JV agreement, Desert can earn a 51 per cent interest in the Camel Hills project from Aurora Minerals by sole funding the first $3.4 million of exploration expenditure.

Desert can elect to continue sole funding to earn an additional 19 per cent interest in the project, for a total 70 per cent interest.

The tenement package currently exceeds some 1,600 square kilometres, which the company’s geologists consider to be prospective for gold, copper, nickel and iron ore.