Segue snaps up four more nickel tenements in WA’s Fraser Range
Segue Resources Ltd’s (ASX:SEG) has expanded its holdings in WA’s nickel rich Fraser Range yet again with a move to acquire 100% stakes in four more nickel exploration tenements.
SEG has been snapping up nickel prospects in the region since 2013 when it acquired three companies, Fraser Range Resources, Becrux and Distant Island for just $200,000 and $1.1M worth of its shares.
Cost of acquisition
The deal to acquire the four new tenements was brokered through SEG’s shareholding in International Goldfield Ltd (ASX: IGS).
SEG is to immediately pay $100,000 in cash and issue 50M of its shares to purchase 65% of the acquisition. Over the next three months, SEG will pay the remaining 35% with $200,000 and by giving IGS a 1% net smelter royalty in the company.
Travis Schwertfeger, Managing Director of IGS, says: “This acquisition agreement allows Segue to reach its goal of 100% ownership faster and cheaper, ensuring IGS retains its upside exposure (through Segue shares) to all of Segue’s exploration tenements.”
Impact on SEG’s Plumridge JV
The four tenements make up more than 830km2 and contain Nova-style nickel sulphide deposits and Corvette gold prospects. SEG says the land is ‘highly prospective’.
Previously, SEG’s joint venture only allowed for acquisition of 60% of these tenements but now the company is able to acquire them in their entirety.
Progress for Plumridge Nickel Project tenements
Back in March, SEG entered into a joint venture with Fraser Range Metal Group Ltd for two exploration licenses covering more than 640km2 in the Fraser Range. It also acquired 10 Exploration Licence Applications next to Segue’s Plumridge Nickel Project.
Dr Howard Carr, SEG’s Technical Director, says: “We believe the poorly exposed Fraser Range is likely to host a significant number of nickel deposits of varying grade / tonnage characteristics, similar to that of the much better exposed Raglan Nickel Belt of Northern Quebec, Canada.”
Future for tenements
Investigations are continuing on the tenements to look for detailed electromagnetics, which reveal where the nickel is in the ground. Air core bedrock drilling is then scheduled for the second quarter of 2014.
Following this, in the third quarter of this year, nickel conductor plates within eye structures will be tested with deeper reverse circulation drilling.