AusQuest Limited is pleased to advise that it has identified three high priority drilling targets at its 100%-owned Dundas Nickel-Copper Project, located ~80km south of the Nova and Bollinger nickel-copper-cobalt discoveries in the Fraser Range belt of Western Australia. The targets have been confirmed by ground-based geophysics designed to follow up recently completed VTEMMax surveys which were flown over the tenements earlier this year, generating four anomalies of interest (see ASX Announcement – 3 April 2013).

In addition, soil sampling upgraded the potential of one target, reporting low-level nickel and copper anomalism coincident with the projected surface position of the interpreted conductor. Airborne and ground-based geophysics, together with surface geochemistry, played an important role in the discovery of the Nova nickel-copper-cobalt deposit by Sirius Resources in 2012.

Ground EM Survey Results

Ground FLTEM surveys have been completed over the four VTEM targets to determine their conductivity characteristics and optimise sites for drilling. Survey lines were spaced 150m apart with readings taken at 50m intervals. The transmitter loops (800m x 500m) were positioned to provide optimum coupling with the interpreted VTEM targets. The ground EM surveys identified two strong and one moderate discrete conductor with strike lengths varying from ~400 to 800m. Conductors A and B are relatively shallow (depths ~50m to 100m) and have steep dips while Conductor C is deeper (~200m) and dips more shallowly to the south-west. All three targets are recommended for drilling.

Soil Sampling Results

Soil sampling was completed over two of the targets (A and B) where ground conditions were considered to be reasonable for effective surface geochemistry. Previous mapping and shallow drilling had indicated that transported soils up to 15m thick covered much of the area, making the use of surface geochemistry difficult in many areas.
Samples were collected at 50m intervals along traverses 200m apart and sent to Aurum Laboratory in Perth for sample preparation and analysis of base and precious metals.
 A range of size fractions were analysed for each sample, with assay results for the fine fraction (<106 microns) displaying the greatest contrast in metal values, highlighting a distinct twice background nickel (50ppm) and copper (30ppm) anomaly coincident with conductor B. This target is now considered a high priority for drilling. Drilling is planned for the fourth Quarter 2013 pending environmental and native title access approvals and the availability of a suitable drilling rig.