Nelson commissions second drill rig to test Tropicana territory
Nelson Resources Limited (ASX:NES) has provided a drilling update for its Woodline Project in the Fraser Range, Western Australia.
The project lies on the boundary of the Albany Fraser Oregon and the Norseman - Wiluna Greenstone belt in Western Australia.
The area encompasses 45 kilometres of the Cundeelee Shear Zone which already consists of a known +20 kilometre gold geochemical and bedrock anomaly, hosted in the same geological structural setting as the 7.7 million ounce Tropicana Gold mine.
Nelson’s significant and unique holding is within the confluence of the Keith-Kilkenny Fault / the Claypan Shear Zone and the Cundeelee Shear Zone.
These three shears have hosted many of the largest gold projects in Western Australia.
Consequently, there is much anticipation regarding the group’s upcoming drilling program, and since Nelson announced that it had raised $2 million to advance’s exploration projects in January, the company’s shares have increased by about 25%, striking a 12 month high of 12.5 cents in early February.
Diamond drilling to follow up reverse circulation program
Management has commissioned its second drilling rig (RC) to complement its currently operating diamond drilling rig.
The current 68-hole 6068 metre RC program is designed to test the interpreted dip and strike of potential gold-bearing structures identified in the course of historical RC drilling by Sipa/Newmont.
These structures are currently being tested by the company with a 1000 metre to 1500 metre diamond drilling program.
Initial diamond drilling and RC samples are planned to be with SGS laboratory late next week.
Nelson is benefiting from having its own drilling capabilities as this not only reduces exploration costs, but it also expedites the drilling program.
Given that diamond drilling and RC samples will be undergoing analysis in about a week’s time, it won’t be long before assay results are released, an event that could provide share price momentum.
In the following video NES CEO Adam Schofield speaks with Proactive Investor on site at Woodline about the drilling program:
The combined diamond and RC program is designed to further test the gold potential of the company’s Socrates, West Socrates, East Socrates, Grindall and Redmill projects.
The Grindall and Redmill projects sit within a 20 kilometre gold geochemical anomaly that is positioned in the hanging wall of the Albany Fraser Oregon.
Importantly, the Tropicana Gold mine is in the same structural geological setting.
Commenting on the start of this RC drilling program and highlighting the benefits of the group’s internal drilling capabilities, Nelson’s chief executive, Adam Schofield said, "Nelson’s start to this RC Drilling program is a significant progression for the company.
"The 6000 metre RC program is an effective way for us to test the dip and strike of potential gold-bearing structures identified in historic RC drilling.
"I am extremely proud of the concerted three-month effort the Nelson team has made in getting our drilling division fully operational.
"Having this internal drilling capability affords us significant flexibility and cost savings in the future. ‘
"We look forward to delivering multiple RC and diamond drilling programs in the next 12 months, ongoing news flow and value to our shareholders.
Short-term positions in small, early stage ASX companies,
with high potential and near term price catalysts.
Focusing on resource exploration, early-stage tech, and biotech.
Exceptional opportunities across a broad range of
early-stage growth sectors with strong management.
Seeking 1,000% plus returns across medium to long-term holds.
Longer-term positions in a variety of sectors.
Seeking strong management where traction is established and have entered into a growth phase.
S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.