The Lake Percy project comprises two
adjoining granted tenements of E63/877 and E63/878 that cover
an area of 63km2. The tenements are located in the northern
parts of the Lake Johnston greenstone belt, some 40km
northwest of the Emily Ann nickel mine. The Lake Percy area is
characterised by extensive surface cover and lack of outcrop.
Consequently, knowledge of bedrock geology is largely derived
from limited drilling information and interpretation of
aeromagnetic data.
The tenements cover the
northwestern extremities of the Lake Johnston greenstone belt
that has been subject to only limited exploration in the past.
Samantha Exploration NL and Forrestania Gold NL completed
surface geochemistry and scout RAB drilling to test regional
aeromagnetic anomalies (remnant greenstone) below cover of
aeolian sand and transported laterite. Their work was
successful in outlining mafic, ultramafic, BIF and felsic
volcanic lithologies interpreted to be the northern strike
extensions of lithologies that host the Emily Ann and Maggie
Hays deposits. Drillholes by Samantha were not analysed for
nickel despite recognition of prospective ultramafic rocks.
More recent exploration on LionOre’s adjacent Johnston
Sandplain prospect was successful in intersecting narrow
widths of disseminated nickel sulphides in the same ultramafic
lithologies.
In late 2003 Western Areas commenced
exploration on ground adjoining the northeast of Regency’s
Lake Percy tenements under a Joint Venture agreement with
Image Resources. They carried out aeromagnetic interpretation
and reconnaissance RAB drilling. RAB drilling targeted
aeromagnetic anomalies that trend into Regency’s current
project area and returned two encouraging intersections, 6km
apart, of 2m @ 0.6% Ni from 46m downhole, and 1m @ 0.9% Ni
from 40m to end of hole. Both intersections were hosted by
ultramafic lithologies.
Although at an early stage of
exploration these results support the nickel sulphide
prospectivity of the broader Lake Percy region, and also
provide encouragement for further exploration within Regency’s
strategically located tenements. The Company has proposed a
work program to evaluate the potential of the Lake Percy
project for ultramafic hosted nickel sulphide mineralisation.
The program includes interpretation of detailed aeromagnetic
data, geological mapping, surface geochemistry and RAB
drilling of resultant targets.
Based on an independent
geological report prepared by Baxter
Geological
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