Nelson resources gears up for a robust year after strong December quarter

Nelson Resources Ltd (ASX:NES) had a busy and strong December quarter, completing the ground electromagnetic survey, started diamond drilling, identified new nickel targets and established an inhouse drilling capability across its Western Australian projects. All these steps are likely to provide Nelson Resources with a solid ground for a robust year ahead. This year, the company completed a successful placement to raise $2.1 million from existing and new high-quality sophisticated investors with the issuance of 28.7 million new shares at 7.5 cents per share. The company also added several drilling and support personnel to the company’s drilling team. Woodline Grindall-Redmill-Harvey Loupe ground electromagnetic surveys completed at Redmill, Grindall, Socrates, Socrates West and Morris nickel prospect with clearly identifiable geological structures. The company is awaiting final interpretation results for these surveys which appear to identify plate conductors that match the company’s exploration targeting model. Previous works have identified a 20 kilometres gold geochemical anomaly where limited drilling intersected mineralisation in the host bedrock. A 400 line kilometre ground magnetics program completed in the previous quarter identify several target geological units which are interpreted to host small portions of the gold anomalism. The LOUPE survey has followed up on this magnetics program and mineralisation that was intersected in previous Sipa/Newmont drilling, which returned 10 metres at 1.29g/t gold from 64 metres including 1metre at 7.80g/t from 71 metres and 12 metres at 0.76g/t from 64 metres including 1metre at 9.14g/t from 64 metres. The current 1500 metres diamond drilling program at Grindall-Redmill and Socrates is anticipated to be completed in February with initial results being announced shortly thereafter pending laboratory turnaround. The company has planned an RC drilling program to coincide with the diamond program and has 19 RC drill holes for 2530 metres planned at Grindall and 7 RC drill holes for 760 metres planned at Redmill. Socrates surveys Using the LOUPE electromagnetic ground survey system, the company has completed a 32.1 line kilometre survey at Socrates and a 16.8 line kilometre survey at Socrates West both conducted on 20-meter line spacings. The company is awaiting final interpretation results for these surveys with an early interpretation of the survey result at Socrates appearing to increase the potential strike to over 2 kilometres. It has also enabled the development of new drill targets to the north and south of the Socrates mineralisation that has been defined by past exploration. The current 1500 metres diamond drilling program at Grindall-Redmill and Socrates will be completed in mid-February with initial results being announced in late February. Mineralisation at Socrates is open along strike and at depth and remains untested by the existing drilling, and the company believes it could potentially declare a resource at Socrates in 2021. Morris exploration Using the LOUPE electromagnetic ground survey system the company completed a 5.8 line kilometre survey at Morris conducted on 20-meter line spacings. The company is awaiting final interpretation results for this survey with the early interpretation of the survey result at Morris identifying a relatively weak, but the near-surface conductor. The Company is encouraged by the result, as the rocks in the survey area are likely to be oxidised or partly oxidised, and any near-surface sulphide response is expected to be muted. Looking forwards In the next quarter the company intends to conduct: 24 square kilometres Photogrammetry Surveys for Centimetre level accurate DEM data; 24 square kilometres Ultra High-Resolution Ground Magnetic Surveys for structural data; 24 square kilometres Passive Seismic Surveys for cover mapping and structural data; and IP and EM Surveys to identify potential nickel and gold-bearing sulphides. This work is intended to map the extent of the paleochannel and potential parallel intrusive structures to define RC drill targets for Q2 2021.