Lake King (70% of nickel rights with Swan Oak Holdings)

The Lake King project is located 60km south west of Forrestania. The focus of exploration is a north –west / south-east trending greenstone belt containing two interpreted parallel trends of cumulate ultramafic rocks.

Earlier exploration drilling by Western Areas at the "Nickel Hill" prospect on the western trend intersected a number of ultramafic units, with a thin (1cm) vein of massive sulphide 176m which averaged 9% nickel (uncalibrated niton analysis) and drill hole LKR006, which intersected 15m at 0.4% nickel including 1m at 0.8% nickel at 190m depth. These intersections are significant as they are the first recorded intersection of nickel sulphides in the Lake King greenstone belt. The Lake King greenstone is effectively unexplored for nickel and the potential exists for economic nickel mineralisation to be located within the two interpreted parallel trends of cumulate ultramafic rocks.

Exploration activities are concentrated on investigating the strike extension of the Nickel Hill stratigraphy as well as testing the eastern ultramafic trend. Initial aircore drill testing and subsequent deeper RC and diamond drilling of a number of magnetic anomalies within both trends confirmed that the prospective host ultramafic sequence at Nickel Hill extends 10km north of Nickel Hill, and along a separate belt 6km to the south of Nickel Hill.

A recent detailed aeromagnetic survey (100m line spacing) over the Lake King project area has further refined the location of the magnetic portions of the stratigraphy that are typically associated with the prospective ultramafic rocks. A number of surface electromagnetic geophysical surveys have now been completed over the interpreted prospective parts of the stratigraphy. The surveys have returned multiple anomalies coincident with interpreted ultramafic rocks. Drilling to test these high priority targets has now been scheduled.