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[Ferro-Alloys.com] “With AVL’s focus firmly on the development of the Australian Vanadium Project at Gabanintha, we are pleased to have completed this first important phase of work at Coates,” says MD Vincent Algar.

Australian Vanadium Ltd (ASX:AVL) has completed an initial program of stratigraphic reverse circulation (RC) and diamond drilling at the Coates Nickel-Copper-PGE Project within Coates Mafic Intrusive Complex near Wundowie in Western Australia.

The drilling followed a successful SkyTEM Airborne Electromagnetic (AEM) survey which identified three conductors, with the largest having a strike length of 1,900 metres.

An 11-hole program of RC pre-collar and diamond tail drilling was undertaken, with all pre-collars completed for 840.6 metres.

The drilling was co-funded through the Western Australia Government Exploration Incentive Scheme (EIS), to identify new nickel-copper-PGE discoveries in the prospective Wheatbelt region northeast of Perth.

Looking ahead, AVL will log and process the diamond core and RC samples obtained from the first stage drilling at Coates during the September quarter.

“Very exciting region”

AVL managing director Vincent Algar said: “With AVL’s focus firmly on the development of the Australian Vanadium Project at Gabanintha, we are pleased to have completed this first important phase of work at Coates.

“The AVL team will process the core with the support of the CSIRO Nickel Indicator team and we look forward to seeing what the drilling at Coates uncovers."

Option agreement

AVL signed an option agreement with Mining Green Metals (MGM) in May for MGM to acquire a 100% interest in the Coates Project. MGM is aiming to list on the ASX later this year.

The option agreement includes the company’s Nowthanna Hill uranium project and would provide AVL with 6.5 million fully paid ordinary shares in MGM, a 0.75% net smelter return royalty from the value of the minerals mined and a cash payment of $190,000.

The option is conditional on MGM completing due diligence on the tenements and listing on the ASX.

“On MGM’s successful listing, AVL shareholders will continue to hold a significant stake in future discovery in this very exciting region heralded by the discovery of Julimar," Algar said.

“The incoming MGM team will be able to dedicate significant focus and resources to the project. The suite of potential minerals at Coates are currently in high and growing demand.”

Drill program

AVL completed 840.6 metres of RC drilling over 11 holes and 169.6 metres of NQ diamond core drilling over three holes for a total of 1,010.2 drilled metres.

Two diamond tails were finished, and one was abandoned before the full planned depth, due to bogged rods.

An additional nine diamond tails are required to complete the stratigraphic fence, including re-drilling of the hole that was abandoned

Notably, the drill line remains open and the Program of Work (PoW) approval remains active.

Drilling of the diamond tail portion of the program will be completed pending the sale of the project to MGM, subject to its successful listing on the Australian Securities Exchange.

Despite being stopped early due to budget limitations, the program as completed to date provides a significant section of geochemical samples in the percussion components of the drill holes.

Importantly, the diamond core now available for the Australian Government’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) Nickel Indicator Study of the Coates Mafic Complex extends 350 to 500 metres further northeast into the intrusion and approaches the zone of the SkyTEM and surface nickel, platinum and chromium anomalism previously identified.

• [Editor:tianyawei]