White Cliff Minerals (ASX:WCN) has identified a new high tenor nickel in soil anomaly at its Merolia Nickel and Copper project in Western Australia’s Laverton region, which should see the share price lift.
   
The 1.5 kilometre by 500 metre nickel anomaly on the eastern side of the Rotorua Ultramafic unit, which is open to the north, was found through analysis of geochemical soil samples.

In addition, three smaller nickel anomalies with associated chrome, cobalt, zinc and copper have been identified at the southern end of the Rotorua ultramafic complex.

“It is astounding to realise that a major 10 kilometre by 2 kilometre ultramafic sequence in a region that hosts several major nickel mines has never been tested by drilling or geophysics,” managing director Todd Hibberd said.

“The identification of additional nickel anomalies continues to improve the prospectivity of the Merolia project.

"The size and strength of the nickel anomaly is highly encouraging and warrants further follow up work to the north to define the extent of the anomalism.”

The company is now carrying out additional geochemical soil sampling program over the large anomaly as well as further infill geochemical sampling around other defined anomalies. Results are expected to be available in the coming weeks.

“The Rotorua ultramafic is highly prospective for nickel sulphide deposition and represents an excellent exploration target.

“The geochemical surveys will be followed by low cost RAB drilling and geophysical surveys that are expected to generate multiple defined EM conductors that will be drilled in the latter part of 2014.

“We are highly encouraged by the initial results generated from the geochemical program at the Merolia project, Hibberd added.

“The prospective parts of the Merolia project extend over 80 kilometres and are along strike from the Rosie and Camelwood nickel sulphide discoveries to the north and the Mulga Tank nickel discovery to the south providing confidence that further strong results will be delivered as exploration progresses.”

Soil Sampling Results

Analysis of the 323 soil samples from the geochemical sampling program had resulted in the identification of a major nickel anomaly with a strike length of over 800 metres at the McKenna prospect.

Since then analysis of the remaining 1,022 samples has revealed several additional areas with anomalous nickel in soil anomalies.

The strongest 1.5 kilometre by 500 metre anomaly occurs on the eastern side of the Rotorua Ultramafic unit within a wedge of ultramafic rocks folded around the nose of a felsic intrusion.

Further infill and extensional geochemical sampling is currently being undertaken to identify the extents of the anomalism, which is open to the north.

Three smaller nickel anomalies with associated chrome, cobalt, zinc and copper have been identified at the southern end of the Rotorua ultramafic complex, occurring along a contact within the ultramafic units or at a contact between ultramafic and felsic units.

Detailed analysis of the sampling results has also revealed that a large proportion of the ultramafic rocks within the survey area have virtually no geochemical response.

Several test pits excavated across this area indicate that transported Aeolian sands have filled in a shallow depression and covered a large proportion of the ultramafic stratigraphy, limiting the effectiveness of sampling.

White Cliff plans to test area using low cost reverse air blast or vacuum drilling to penetrate the cover.

Merolia Nickel-Copper Project

The Merolia Project licences cover 771 square kilometres in the Merolia Greenstone belt, a region prospective for magmatic nickel and copper sulphides and orogenic gold deposits.

It contains extensive ultramafic sequences including the Diorite Hill layered ultramafic complex, the Rotorua ultramafic complex, the Coglia ultramafic complex and a 50 kilometre long zone of extrusive ultramafic lava’s.

The Intrusive complexes are prospective for nickel-copper sulphide accumulations possibly with platinum group elements, and the extrusive ultramafic rocks are prospective for nickel sulphide and nickel-cobalt accumulations.

The project also contains extensive basalt sequences that are prospective for gold mineralisation including the Ironstone prospect where historical drilling has identified 24 metres at 8.6 grams per tonne gold.

Merolia is highly prospective for two types of nickel and copper sulphide mineralisation:

-    Intrusive layered mafic-ultramafic related basal margin nickel and copper sulphide accumulations; and
-    Extrusive lava channel Kambalda style nickel sulphide deposits.

Analysis

The discovery of further nickel anomalies at the Merolia Project further validates White Cliff Mineral’s decision to carry out exploration in the Laverton region, which hosts several major nickel mines.

The results are share price accretive today as well as providing further catalysts going forward.

Further news ahead for Merolia include results from further geochemical sampling and RAB drilling.

As Todd Hibbert said best it really is astounding to realise that a major 10 kilometre by 2 kilometre ultramafic sequence in a region that hosts several major nickel mines has never been tested by drilling or geophysics.

The identification of additional nickel anomalies will continue to improve the prospectivity of the Merolia project.

• [Editor:Yueleilei]