Next Investors logo grey

Joint venture launches into Plumridge work


Published 30-OCT-2015 10:07 A.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Segue Resources (ASX:SEG) has outlined the scope of work at its Plumridge Nickel Project in WA, the first work done at the project since multi-billion dollar MMG Ltd farmed into the project.

It has told its investors that MMG would lead the way on conducting a high resolution infill gravity survey over three key tenements at the nickel-copper project, a survey which is set to start next week.

The survey will consist over 6000 stations on a 400m by 200m grid, basically filling the gaps between an existing survey previously done by SEG.

The upshot of the survey is that the joint venture will then have an even more solid dataset to work from as it seeks to delineate possible drilling targets into the future.

According to the terms of the farm-in signed with MMG back in September, the Hong Kong-listed company will earn a 51% stake in the project by spending $6.5 million in exploration by the end of 2019.

However, it can bump this up to 70% by tipping in another $7.5 million after that within a two-year window.

SEG managing director Steven Michael said the fact it was spending money early meant MMG was dedicated to the project.

“MMG’s technical and financial resources and speed of execution are crucial elements in delivering value to Segue shareholders,” he said. “The completion of a major infill gravity survey before the end of 2015 clearly demonstrates MMG’s commitment to the Plumridge JV.”

Next Investors Image

Location of the Plumridge Nickel Project

About Plumridge

The Plumridge Project is a collection of eight exploration licenses covering 2250 in the Fraser Range, and is just 150km north-west of the Nova and Bollinger nickel discoveries which famously put Sirrius Resources shares on a tear.

Prior to the joint venture forming in September, Segue had completed several surveys over the project area.

This included its most substantial work, a gravity survey, was over the past year, with work extended to include aeromagnetic surveys, 3D mapping and soil geochemistry analysis.

SEG geologists conducted detailed surveys of the geology below the surface from 19,406 stations, covering an area of 3000

SEG also recently completed a limited reverse circulation drilling campaign at the project for a total of 985m across four target areas. It was aimed at testing a number of gravity anomalies brought up during the gravity survey.

In other SEG news, it announced that it would start its maiden aircore program at its Salt Creek Project, with results due back mid-November.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.