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 new nickel and base metal explorer.

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

Lawlers - (Sirius 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 earned a 70% 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 within three years. 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 has commenced an exploration program comprising ground electromagnetic (EM) geophysics to define drill targets and subsequent testing of these targets using rotary air blast (RAB), reverse circulation (RC) and diamond drilling. To date, approximately 50% of the prospective stratigraphy has been covered by EM and eight conductors have been identified. Sirius plans to continue EM and commence drilling the targets defined to date in the March 2010 quarter.

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). Despite being along strike from Olympia, the area is concealed by younger rocks and is largely unexplored. 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 commenced additional ultra-detailed aeromagnetic surveys to define further drill targets and intends to commence initial reconnaissance drill testing of these late in the March 2010 quarter.

Fraser Range - (Sirius 70% of Base Metal Rights)

The Fraser Range JV covers 400 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 mafic - ultramafic intrusive rocks of the Fraser Complex and is considered prospective for the rare but potentially giant intrusive-associated Ni-Cu-PGM deposits that are found within circum-cratonic mobile belts worldwide. The project is a joint venture with prospector Mark Creasy. Sirius has a 70% interest in the base metal rights, with Mark Creasy retaining a 30% free carried interest to the completion of a bankable feasibility study. The base metal rights include nickel, copper, cobalt, zinc and lead together with platinum group metals (PGM's) and any other minerals found in association. Much of the area is completely unexplored, but sulphides have been intersected in previous drilling in the southern part of the JV area adjacent to the Eyre Highway, where narrow intersections of up to 1.8% Ni and 1.2% Cu have been recorded. Geochemical surveys have commenced at five locations in the southern and central part of the area, with results expected in January and February of 2010. Sirius hopes to commence drilling late in the March 2010 quarter.

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 platinum group metals (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 recently 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 JV also contains extensions of structures which host gold mineralisation at Apex's nearby Youanmi gold mine. 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 with selective geochemical surveys over PGM and VMS target areas. Results from these surveys are expected early in the March quarter of 2010.

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 control gold mineralisation further north including that at Avoca’s Trident deposit. The project also contains the extensions of the Kambalda and Widgiemooltha ultramafic stratigraphy, which hosts significant 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. Of particular interest is the presence of a gossan (the oxidised surface expression of sulphides) together with narrow drill intercepts of nickel sulphide recorded in historic sampling and drilling undertaken up to 40 years ago. Sirius’ initial exploration focus will be to verify these occurrences and define the extent of prospective ultramafic, as a precursor to locating and testing the contact zones which are largely hidden beneath transported cover, and unexplored.

Mine For

copper, nickel, platinum, zinc, cobalt, lead, platinum group elements

Location of operation(s)

Western Australia

Address

Level 1, 10 Ord St
WEST PERTH, WA, Australia

Phone

08 6311 5554

Email

Website

http://www.siriusresources.com.au

Last Updated

01/03/2010