30th Oct 2014 10:42
LONDON (Alliance News) - FinnAust Mining PLC Thursday said it has identified targets and is ready to drill at the Kelkka nickel sulphide project in south east Finland after completing geophysical modelling of the site.
The company believes the Kelkka nickel project is host to a massive nickel sulphide formation and has five priority targets in place, identified by the geophysical modelling programme conducted by Astrock Geophysics, it said in a statement.
"Historic drill holes encountered very large widths at over 5% nickel. This suggests that near mine exploration holds real potential for discovering high-grade nickel sulphide mineralised bodies in adjacent intrusive rock at Kelkka," said Executive Director Alastair Clayton.
"High-grade nickel sulphides are widely seen as one of the top value creators for exploration companies such as ours, due to their rarity. Nickel prices have risen in 2014 on the back of limited supply," he added.
The company will test two of the targets to begin with, via a 1,000 metre drilling programme. The company has said drilling will commence at the appropriate time.
"With all preparatory work now complete the company looks forward to scheduling this initial two to three hole drill programme into our extremely busy 2014 work programme," said Clayton.
FinnAust shares were down 4.8% to 2.50 pence per share Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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