SIRIUS RESOURCES NL - ASX: SIR

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Description

Sirius has an extensive tenement portfolio within Western Australia, covering over 8,500 square kilometres, making the company a significant gold, nickel and base metal explorer.

The projects are located within world-class nickel districts and in several emerging gold, nickel and base metal provinces. They are prospective for Archean komatiite style nickel sulphide deposits, Proterozoic circum-cratonic intrusive style nickel deposits, volcanogenic massive sulphide (VMS) copper-zinc deposits and lode gold-style deposits.

Lawlers (Sirius 84% and 70% of nickel sulphide rights)

The Lawlers project comprises the nickel sulphide rights on two separate but contiguous Joint Ventures with Barrick Gold on the ground surrounding the Lawlers gold mine. Sirius has an 84% interest in the Lawlers Nickel (2008) Joint Venture, and is earning a 70% interest in the Lawlers 2009 Nickel Joint Venture by spending A$1.5 million by June 2011.

The project covers 80 strike kilometres of extensions of the stratigraphy which hosts most of WA's major nickel sulphide mines, including BHP's Leinster and Mount Keith nickel operations, Xstrata's Cosmos, Prospero and Sinclair nickel mines, and Norilsk's Waterloo nickel mine.

Having been held by gold companies, it is the single largest ground holding that remains relatively unexplored for nickel sulphide since the discovery and development of most of the surrounding nickel mines. The Lawlers project is prospective for small high grade (~1mt @ 8%Ni) komatiitic nickel deposits similar to those being mined nearby.

Sirius is exploring for these targets using ground electromagnetic (EM) geophysics and six EM conductors have been identified and are being drilled.

Collurabbie (Sirius 70%)

The Collurabbie project covers the northern extensions of the stratigraphy which hosts Falcon's Olympia nickel-copper-platinum group metals (PGM's) discovery, some 12 kilometres along strike. Drilling results previously published for the Olympia discovery include 5.77m @ 3% Ni, 1.96% Cu and 5.3g/t platinum group metals (PGM's). The area is largely unexplored due to the presence of a near surface layer of younger rocks.

The project is a Joint Venture with prospector Mark Creasy, who retains a 30% free carried interest to the completion of a bankable feasibility study.

Limited previous electromagnetic (EM) surveys have identified conductors, including one which appears to broadly correspond with the interpreted position of the prospective horizon. Limited ultra-detailed aeromagnetics has also identified a number of buried lenticular magnetic units, which are interpreted to be similar ultramafic pods to those known to host mineralisation at Olympia. None of these targets have been effectively drill tested. Sirius has undertaken ultra-detailed aeromagnetic surveys and has defined drill targets which will be tested in June 2011.

Fraser Range (Sirius 70%)

The Fraser Range JV covers over 150 kilometres strike extent of the Albany-Fraser mobile belt on the south-east margin of the Yilgarn Craton, south of Anglogold's/Independence's Tropicana gold discovery. The project contains two distinct geological belts, each prospective for different commodities. The southeaster belt comprises mafic - ultramafic intrusive rocks of the Fraser Complex and is considered prospective for the rare but potentially giant intrusive-style Ni-Cu-PGM deposits that are found within circum-cratonic mobile belts worldwide. The northwestern belt is the continuation of the Tropicana belt - host to Anglogold Ashanti's 5 million ounce Tropicana-Havana gold mine, and is prospective for Proterozoic gold mineralisation.

The project is a joint venture with prospector Mark Creasy. Sirius has a 70% interest with Mark Creasy retaining a 30% free carried interest to the completion of a bankable feasibility study.

Sirius has defined oxide-zone nickel-copper-cobalt mineralisation at the Gnama South prospect and has recently intersected gold mineralisation in several holes during its first pass reconnaissance drilling program of the 10km long Brookman gold anomaly. A 200 hole follow up drilling program commenced in early April 2011 at the Brookman anomaly. Additionally, recent geochemical sampling has defined a large (2km long) coincident nickel-copper anomaly over an eye-shaped magnetic feature thought to be a previously unknown domal structure or layered intrusion containing nickel-prospective ultramafic rocks.

Youanmi (Sirius 70% excluding V-Ti-Fe)

The Youanmi project covers the Youanmi intrusive complex and surrounding felsic stratigraphy. The intrusive complex is prospective for magmatic nickel-copper-platinum group metal (PGM) mineralisation, and the surrounding felsic stratigraphy is prospective for volcanogenic massive sulphide (VMS) style copper-zinc mineralisation, as evidenced by drill intersections and resources defined by other companies nearby. These occurrences include the nearby Currans prospect (7.03m @ 1.48% Ni in drilling), Empire Resources' Just Desserts resource (1.07mt @ 1.8% Cu and 0.8g/t Au) and Metals Australia's Manindi resource (1.35mt @ 6% Zn).

The project is a joint venture with prospector Mark Creasy, who retains a 30% free carried interest to the completion of a bankable feasibility study, and the vanadium-titanium-iron rights.

Exploration at Youanmi commenced in late 2009 and is focused on several magmatic sulphide and VMS target areas, including Manindi North and Ram Well. At Manindi North, geochemical surveys have defined a >400 metre long Cu-Zn-Pb anomaly along strike from the known VMS mineralisation, and reconnaissance RAB drilling has confirmed anomalous zinc and copper in weathered rock beneath these anomalies. Electromagnetic (EM) geophysics has defined several EM conductors beneath these soil and RAB anomalies and drilling will be underway throughout April and May 2011. At Ram Well, geochemical surveys have defined an 800 metre long copper anomaly on the interpreted contact zone of the intrusion. A gravity survey has been undertaken and 3D inversion modelling of this has defined several discrete pods of dense material at depth beneath the soil anomaly. Drilling is planned for later in 2011.

Polar Bear (Sirius 100%)

The Polar Bear project covers an area of over 190 square kilometres between Higginsville and Norseman, and contains several major shear zones which host gold mineralisation further north including that at Alacer’s Trident deposit. The project also contains the extensions of the Kambalda and Widgiemooltha ultramafic stratigraphy, which hosts world class nickel sulphide mines along strike to the north.

The area is relatively unexplored due to it being largely concealed by the shallow salt lake sediments of Lake Cowan and the sand dunes of the Polar Bear peninsula. Exploration has also been limited during the past twenty years due to a series of complex joint ventures and ownership structures. Sirius’ purchase of the project extinguishes all other previous joint venture agreements and delivers full title to the tenements and all commodities.

The Halls Knoll gossan (the oxidised surface expression of sulphides) has yielded extremely high levels of Ni, Cu and platinum group metals (PGM's) indicative of the presence of massive nickel sulphide. Sirius’ initial drilling has intersected disseminated nickel sulphides beneath the salt lake surface, with individual metre values up to 2.5% nickel, 1.5% copper and 1-2g/t palladium and platinum.

Numerous electromagnetic (EM) conductors have also been identified beneath the salt lake, of which eight are considered priority targets.

Sirius' first reconnaissance drilling for gold has also intersected supergene gold mineralisation with values up to several grams per tonne.

An aggressive exploration program will commence mid-year once a suitable lake rig is secured.

Mine For

gold, nickel, copper, zinc, platinum group elements, cobalt, uranium, chromium, platinum

Location of operation(s)

Western Australia

Address

Unit 5, Mumford Pl
BALCATTA, WA, Australia

Phone

(61 8) 9240 8914

Email

Website

http://www.siriusresources.com.au

Last Updated

3/5/2011