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SEGUE RESOURCES LIMITED - ASX: SEG
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Description
Segue Resources Ltd (ASX code: SEG) is a minerals exploration and development company focused on exploiting the iron ore potential at its 100% owned Pardoo Project in the world-class Pilbara iron ore province of Western Australia.
Pardoo Iron Ore
Segue's Pardoo magnetite project is located approximately 120km east of Port Hedland and 15km from the coast. The project is close to other key infrastructure including an “open” railway, gas and electric power. Abundant good quality ground water is also available from the Canning Basin immediately to the north. The tenements are highly prospective for iron ore buried magnetite iron.
"Highway" Buried Magnetite Mineralisation
The target at Highway is magnetite in a gabbroic intrusive starting from ~20m depth with simple geometry. Historic drill intersections include, 120m @ 26.4% Fe from 30m, (DD08-HW004), 27m @ 29.0% Fe from 23m, (RC93_GW049). Davis Tube Recovery results from old core (Mithril 2008) are expected in early 2011. The target is ~100m wide with a strike >5kms long.
"Supply Well" Buried Magnetite Mineralisation
In the far east of the Project area previous drilling by CRA intersected a wide zone of intense magnetite mineralisation. The mineralisation is hosted within an intensely altered shear zone that is now composed of magnetite cummingtonite hornblende schists. One historical diamond drill hole (DD90-SW9) penetrated a significant thickness of the schist. This drill hole returned an intersection of 257m @ 30% Fe. Inspection of the aeromagnetic image for the area shows that the magnetite mineralisation extends for approximately 10kms and appears to be at least 100m thick (maximum estimated thickness >500m) over the entire length.
Recent Iron Ore Exploration and Evaluation
Initial diamond core metallurgical test work was recently conducted from historical core at the Pardoo Magnetite Project. Preliminary Davis Tube Recovery (DTR) test work on seven drill core samples show results obtained from the magnetic concentrate with grades of up to 69.1% Fe.
During May 2010 seven drill core samples were taken from one diamond drill hole, (DD90SW009shown in Figures 2 and 3) completed by CRA Exploration Pty Ltd (CRAE) in 1990, for DTR test work. The hole, DD90SW009, was drilled 20 years ago as part of a base metal exploration program (2.4m @ 1.36% Ni was intersected nearby) but rather than base metals, the hole intersected magnetite mineralisation which assayed 257m @ 30% Fe from 98m.
The DTR test work on the partially weathered drill core was completed to determine the optimum grind size and final concentrate specifications of the magnetite mineralisation. The results show that the material between 120m and 176m is characterised by an average recovered iron grade of 68.1% Fe and low sulphur content (average 0.06% S). The results also indicate generally low impurities throughout. The DTR test work has confirmed the potential of producing a marketable concentrate with minimal contaminants at a grind of 80% passing 25 microns.
The SEG Board was encouraged by these initial results and embarked on a diamond drilling campaign to collect additional core for further DTR test-work. The diamond drilling is now completed and was designed to test the mineralisation in more favourable positions away from the known sulphide mineralisation. Assay and DTR test results are expected in late 2010 and early 2011.
Pardoo Nickel Project
The Project tenements contain magmatic and shear-hosted nickel, copper and platinum group elements (PGEs) with an updated mineral resource in accordance with the JORC Guidelines defined at the Highway deposit as advised by Mithril Resources Limited (ASX code: MTH, “Mithril”) in its quarterly activities report released on 30/04/2010.
Segue intends funding new exploration of the nickel and non iron ore potential at the Pardoo Project through the IPO of its subsidiary Red October Resources Limited. Red October will, subject to the IPO, farm in to the nickel and non iron ore rights to the project.
The Pardoo Nickel Project is highly prospective for nickel sulphide mineralisation. Snowden Mining Consultants Ltd (Snowden) updated the existing resource model at the Highway deposit during early 2010. The new estimated total Mineral Resource at Highway is 50.0 million tonnes, grading 0.30% nickel, 0.13% copper and 0.03% C (at a 0.1% Ni cut off grade). Snowden has classified the resource as an Inferred Resource based on the guidelines of the 2004 JORC Code.
Geographically, the project is well positioned, being 15km from the coast and approximately 100km east of Port Hedland along the Great Northern Highway in close proximity to power, road and port facilities.
The principal exploration target is nickel/copper sulphide mineralisation associated with the regional east-north-easterly trending De Grey Structural Zone (also known as the Pardoo Fault) of which the Project contains 25km of effective strike.
Drilling during 2010 was completed testing the depth extent of the Highway Resource. The drilling intersected wide zones of nickel, copper and cobalt mineralisation beneath the deposit. These results confirm its continuity and depth potential and significant intersections include 95m of 0.41%nickel, 0.16% copper and 0.03% cobalt in DD08HW001 (Figures 5 and 6) and 59.2m of 0.44% nickel, 0.1% copper and 0.03% cobalt in DD08HW002.
The Company believes there is potential for higher grade mineralisation beneath the coverage of current drilling on the Highway resource and to evaluate the depth potential downhole electromagnetic surveys were completed in three drill holes subsequent to the end of the reporting period (DD08HW001, DD08HW002 and DD07HW002). The downhole electromagnetic surveys can detect anomalous conductivity that may reflect higher grade mineralisation beneath the existing drilling. The results are encouraging with off-hole conductors being identified. These will be tested in the coming year.
Strategies to unlock the value of the 130,000 tonnes of contained nickel in the Highway Resource are under evaluation. Ore samples collected from last year's diamond drilling program were submitted to AMMTEC Ltd for metallurgical test work. Results will help determine the best option for processing of the Highway ore.
Evaluation of targets outside the resource area is on-going and a number of EM anomalies in the vicinity of Supply Well remain to be tested.
Reviews and re-sampling of diamond drill core has returned assays as high as 5.85% Ni over 0.32m at Supply Well and 2.11% Ni over 1m at Highway, which indicates higher grade nickel sulphides are present within the Project area.
Fourteen individual conductor anomalies have also been delineated of which four have similar characteristics in size and intensity to the Highway mineralised zone with no previous drill testing at all. These anomalies present immediate drilling targets for massive and disseminated sulphides.
In addition to this work, a helicopter VTEM (versatile time-domain electromagnetic) survey has also recently been completed over 174km2 to identify further conductors for ground follow-up.
An outcome of the recently completed aeromagnetic survey is the identification of a circular feature in the northern part of the Highway tenement. Further investigation of open file data reveals that this feature is coincident with a significant gravity anomaly.
Numerous explanations have been proposed to explain this gravity anomaly; however, independent consultants believe the most likely explanation is a layered mafic-ultramafic intrusion. Curiously, the De Grey Structural Zone appears to intersect this feature. Mineralisation associated with the Highway deposit although structurally controlled, appears to be quite an unusual style and does not fit neatly into any conventional model of nickel sulphide occurrence.
Testing is required to establish whether this circular gravity anomaly is the source of primary nickel and copper mineralisation and that the structural dislocation has then been responsible for remobilising this mineralisation into the De Grey Structural Zone.
Layered mafic-ultramafic intrusions are not uncommon in Australia and contribute to a small, but significant amount of nickel, copper and platinum group element (PGE) resources/production. Local examples include Radio Hill (Ni, Cu) and the Munni Munni intrusion (PGE), both near Karratha and Sally Malay (Ni, Cu, Co) in the East Kimberley.
Segue believes this under-explored region, hidden under sedimentary cover has the potential to host significant resources of nickel, copper and platinum group elements.
Mine For
nickel, iron ore, platinum group elements, magenetite, copper
Location of operation(s)
Northern Territory, Western Australia
Address
Ground Floor, 1306 Hay St
WEST PERTH, WA, AUSTRALIA
Phone
(61 8) 9486 4699
Website
Last Updated
04/02/2011
The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.
