Jindalee Resources Ltd (ASX:JRL) has signed a binding farm-in joint venture agreement with Sabre Resources Ltd over its Sherlock Pool exploration licence in West Pilbara, Western Australia.
Under the deal, Sabre will earn an 80% interest in the Sherlock Pool E47/4345, covering immediate strike extensions to the northeast and southwest of Sabre’s Sherlock Bay nickel sulphide deposit.
Terms of the deal
Under the deal, Sabre will pay $7,500 cash and issue 3.5 million company shares to Jindalee on the signing of the agreement.
It will then earn an 80% interest by spending $250,000 within five years including $40,000 within the first year of the term.
Sabre will then free carry Jindalee to completion of a bankable feasibility study.
The Sherlock Pool exploration licence E47/4345 adjoins Sabre’s Sherlock Bay Nickel Project Mining Lease, M47/567.
Sherlock Bay contains a JORC 2012 nickel sulphide measured, indicated and inferred mineral resource of 24.6 million tonnes at 0.4% nickel), 0.09% copper, 0.02% cobalt, containing 99,200 tonnes nickel, 21,700 tonnes copper, 5,400 tonnes cobalt.
The Sherlock Pool tenement covers strike extensions of the Sherlock Bay/Scholl Shear corridor, that hosts Sabre’s Sherlock Bay nickel sulphide deposit, as well as a large area of the interpreted Sherlock Intrusive, that lies immediately to the southeast of the Sherlock Bay deposit.
The Sherlock Intrusive is a layered mafic/ultramafic intrusive comprising of gabbro, granophyre and pyroxenite that is prospective for nickel, copper, cobalt, as well as chromium, vanadium, titanium and PGE, and is the likely source of the nickel-copper-cobalt mineralisation at Sherlock Bay.
Mineralisation has potentially been remobilised or displaced from the Sherlock Intrusive by the Scholl Shear.
Mapping and interpretation of detailed aeromagnetics imagery indicate the Sherlock Intrusive/Scholl Shear continues northeast and southwest of the Sherlock Bay nickel deposit for an up to 10 kilometres strike length within the Sherlock Pool tenement.
Very little of the previous exploration in the Sherlock Bay area has focussed on locating massive nickel sulphides that would be expected to occur in structural embayments and/or the “neck” or “feeder” of the Sherlock intrusive, in the footwall of the main intrusive body (potentially remobilised in the Scholl Shear).
Prospectivity for the discovery of massive nickel sulphides has also been highlighted by the recent Andover massive nickel sulphide discovery by Azure Minerals Ltd (ASX:AZS), associated with a gabbroic intrusion similar to the Sherlock Intrusive.
Sabre plans to rapidly advance exploration of the Sherlock Pool tenement, including detailed electromagnetic (EM) surveys to locate potential massive nickel sulphide deposits, to be followed by aircore then deeper RC and/or diamond drilling to test key targets.
The discovery of massive nickel (+/- copper and cobalt) sulphides at Sherlock Pool would potentially enhance the economics of the Sherlock Bay Nickel Project, which is the subject of a scoping study, nearing completion.
www.ferroalloynet.com
