Kingsrose Mining Limited (ASX: KRM) (Kingsrose or Company) is has entered into a transaction implementation agreement (Transaction Implementation Agreement) with Scandinavian Resource Holdings Pty Ltd (SRH) for a staged investment into the brownfield Råna Nickel-Copper-Cobalt (Ni-Cu-Co) project.
Highlights
- The Råna project has proven potential for discovery of massive sulphide Ni-Cu-Co mineralisation and is underexplored using modern deposit models and exploration methods.
- Excellent access to local infrastructure, located 37 kilometres by main road from the ice-free, deepwater Port of Narvik in Nordland County, Norway.
- The project includes the past producing, underground Bruvann Mine within a contiguous exploration licence holding of 25 square kilometres.
o The Bruvann deposit included a small but high-grade (approximately 1 to 5% Ni) massive sulphide core, indicating that the intrusion generated high tenor nickel sulphide mineralisation.
o Past production demonstrates the viability of operating in the region and the mine area remains designated for raw material extraction in the municipality land use zoning plan.
- Kingsrose has identified three priority prospects with a focus on exploration for high-grade nickelcopper-cobalt sulphide mineralisation:
o Largely undrilled massive sulphide mineralisation outcrops at surface over a 1.6 kilometre zone at the Rånbogen prospect with historical rock chip samples up to 2.3% Ni and 3.2% Cu
Historical (2006) drilling at the southeastern part of Rånbogen returned a best intercept of 17.5 metres @ 0.53 % Ni, 0.12 % Cu, 0.05 % Co from 101 metres (SH004), including 2.5 metres @ 1.13 % Ni, 0.24 % Cu, 0.10 % Co and remains open.
o Mineralisation at the past producing Bruvann Mine is open immediately along strike from mine workings and is adjacent to a >1km long, undrilled conductive body which may represent
massive sulphide mineralisation. Offset styles of copper-rich mineralisation south of the mine are inferred from historical drill data in hole P-11-97 and have never been followed up:
15.1 metres at 1.89% Cu from 148.6 metres, including 8.7 metres @ 2.35% Cu from 155.0 metres.
o The prospective basal ultramafic part of the intrusion strikes over 8 kilometres and dips to the southeast within the licence holding. This has never been systematically explored.
- The Transaction Implementation Agreement allows for Kingsrose to earn up to 75% over 8 years, through staged expenditure up to a total of A$15m.
Fabian Baker, Kingsrose Managing Director, commented “Råna is a very exciting nickel-copper-cobalt sulphide exploration project which complements Kingsrose’s growing critical metals portfolio in the Nordics. Syn-orogenic mafic-ultramafic intrusions analogous to Råna host some of the highest-grade deposits globally, such as Nova-Bollinger and Kabanga. Mineralisation at the Bruvann deposit provides proof of concept that the system is fertile and capable of producing high tenor magmatic nickel sulphide.
Exploration outside of the mine site is very immature, in that modern models of magmatic sulphide deposit formation and exploration techniques have not been applied. Kingsrose sees excellent potential for the discovery of additional high-grade massive sulphide bodies through exploration of the whole intrusive system, with a particular focus on basal and ‘offset’ styles of mineralisation which are common in these settings but have not been explored for historically. We have a focussed exploration program planned to rapidly advance our understanding of the geology and generate targets for drilling later in 2023.
Mr Baker continued “This transaction is testament to our M&A strategy in a market where high-quality nickel sulphide projects are difficult to come by. Nickel is essential in the electrification required to achieve a low carbon future and Europe needs to secure a sustainable domestic supply. With additional funds from the sale of Way Linggo, Kingsrose looks forward to advancing Råna alongside Penikat and Porsanger while continuing the search for additional assets to support Europe’s green energy transition.”