Plumridge nickel boost as gravity data comes in

Published at May 24, 2016, in Small Caps

MMG Limited (ASX:MMG) has completed one of the largest and most detailed gravity surveys in the Fraser Range – something JV partner Segue Resources (ASX:SEG) hopes will increase the odds at the Plumridge nickel project.

As part of a farm-in deal inked with SEG, MMG undertook a 400m by 200m gravity survey to infill a previous broader gravity survey completed by SEG last year.

The phase two survey has resulted in a “significant increase” in the data resolution available to the joint venture covering the majority of the Plumridge nickel project.

The data will be used to try and pick out nickel-copper sulphide deposits at the project – but the JV isn’t done on the data front just yet.

MMG is now planning to undertaking a moving loop electromagnetic survey over select targets to test for any conductive response associated with nickel anomalies.

SEG said in a statement that these may include “potential massive Ni-Cu sulphides”.

The survey is due to kick off next month.

MMG is funding the exploration work as part of a staged farm-in deal inked with SEG last year.

Phase one includes MMG taking an initial 51% stake in the project in return for investing $6.5 million in exploration, while it can earn a further 19% by spending another $7.5 million within two years of wrapping up stage one exploration.

Location of the Plumridge Nickel Project

About Plumridge

The Plumridge Project is a collection of eight exploration licenses covering 2250 sq.km 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 last year, 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 sq.km.

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