Investors in Estrella Resources (ASX:ESR) were all smiles today on news the emerging nickel play has defined massive nickel sulphide mineralisation at the T5 prospect at its Carr Boyd project, 80km north-northeast of Kalgoorlie in Western Australia.
The stock shot to an intraday high on Tuesday of 25c, up 9.5c or 61%, on news results of a downhole transient electromagnetic (DHTEM) survey supported the mineralised sulphides seen in diamond core hole CBDD030.
Earlier this month, Estrella intersected 2.9m of massive nickel-copper sulphide mineralisation from 435.9m to 438.8m depth at CBDD030. DHTEM was then carried out to survey the hole and further define the extent of the massive sulphide system.
This has been an astonishing result for the Company and its shareholders who have all been rewarded through patience, persistence and belief,” Estrella CEO Chris Daws said.
Mr Daws said the drill core was currently in the laboratories being cut, sampled and priority assayed with massive sulphide open in all directions and will be chased by immediate further drilling.
“The results of the DHTEM have put to rest any of my concerns about scale and we are now eagerly awaiting the assay results to get a clear understanding of the potential of this discovery, Mr Daws said.
“Planning and scheduling of the next round of holes to further test this zone is well underway, as we await the completion of hole CBDD031 which is the final hole of the Stage 1 drill program.
“It is being drilled 600m north of the discovery hole into a blind basal contact position in the same manner as CBDD030 and will provide critical geological and geophysical data to assist in unlocking and understanding the potential of the T5 Prospect discovery zone,” Mr Daws added.
Stage 2 drilling has been planned to test the areas surrounding CBDD030 and will comprise 8-10 holes for around 5,000m of RC/DD drilling.
Estrella has retained the Topdrive Drillers (TDA) diamond drill rig and is currently employing the local station owner to assist in upgrading site support infrastructure as all efforts are focused towards defining the mineralisation intersected in CBDD030.
The company will also be increasing the number of drilling rigs, personnel and support as it seeks to determine the extent of the discovery.
Estrella was trading at 1:40pm AEST on Tuesday at 22.5c, up 45.2%, with over 117.6 million shares changing hands on turnover of $25.3 million.