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584 sq km license parts of which explored since 1960s
Central 20 km by 6 km plateau dwarfs better-known 7 by 2 km Wowo plateau
Better apparent grade and topography than Ramu project under development
Linked to Oro Bay by gravel and sealed road
1960-71, 240 auger holes, 56 pits, 1 costean
1999 Anaconda estimates in 158 sq km section 630mt at 0.78% and 200mt at 1.01%, in saprolitic layer

The laterite bearing nickel potential of the Mambare Plateau, some 2 to 20 kilometres north of Kokoda has been explored intermittently since 1960. Kokoda and Mamba Estate to the southwest of Mambare Plateau are linked to Popondetta and Oro Bay by gravel at first and sealed road. The Company through a local 75% owned subsidiary holds the exploration rights to Mambare Plateau within EL 1390, which was granted over 584 sq km for a 2 year period on June 10, 2005.

The Mambare Plateau is an elevated 20 by 7 kilometre old land surface west of the Ajule-Kajale Range, developed on tectonite ultramafics. To the east, these ultramafics are overlain by gabbroic rocks and submarine basaltic volcanics.

Previous exploration was conducted by several companies in the 1960's, including the Bureau of Mineral Resources, Homestake-Hanna Syndicate, Amax Mining (Australia) Inc., Southern Mining & Development Co. Ltd. and PNG Nickel Ltd. Exploration consisted of pitting and hand augering with at least one bulldozer trench being dug. Between 1960 and 1971, 240 Auger holes were drilled, and 56 pits and one costean dug. In 1999 Anaconda Nickel Ltd reviewed the data over a 158 sq km area of the Mambare Plateau and estimated two limonite resource potentials: 630 Mt at 0.78% nickel with a 0.5% cut-off and 200 Mt at 1.01% nickel with a 0.8% cut-off.

The auger drilling across the Mambare Plateau indicates a profile of:

3-5m of ash
3-6m of low grade limonite laterite;
3-6m of limonite ore grading 0.9 to 1.1% nickel (+0.1% cobalt); and
4m of saprolite ore grading at least 1.15% nickel

The pits on the Arumu Slopes indicate a similar profile of:

3-6m of ash
0-2m of low grade limonite laterite
4m limonite ore; and
4m of saprolite ore

This profile is best illustrated by pit KR 022 which has a profile of;

3m of ash
3.66m of limonite ore grading 1.05% nickel (and 0.12% cobalt)
4.55m of saprolite ore grading 1.25% nickel

The current programme consisted of creating a data base of the historical data with ground truthing. The line of pits sunk along the Ukita Ridge in 1962 were located, surveyed into the AMG 66 grid using a GPS and re-sampled. The pits on Namara - Karati Ridge were located and surveyed into the AMG 66 grid. Several of the pits dug by Amax from the 1968 programme on the southern slopes of the Mambare Plateau were also located and surveyed into the AMG 66 grid.

This surveying has allowed correction of the calculated co-ordinates of the pits and the auger holes so they are properly plotted on the published topographic base with the AMG 66 grid.

The samples from the ten re-sampled shallow pits were assayed in Djakarta by PT Intertek Utama Services using the XRF technique. Elements assayed include nickel, cobalt along with Al203, CaO, Cr2O3, Fe2O3, K2O, MgO, MnO, Na2O, P2O5, TiO2 & LOI. There was good correlation with previous results, with 19 of the 48 samples grading over 0.8% nickel and 11 grading over 1% nickel.

A ground magnetometer traverse was completed up the Arumu Slopes onto the Mambare Plateau over a distance of 3300 metres, with individual readings every 25metres.

Seven helipads were cleared to afford helicopter access in the near future.

The 1971 sampling, and that carried out this season, tested systematically for cobalt and the data indicate that over 500 ppm Co is very common in the mineralized limonite sections, with one re-sampled hole grading 0.12%. Compilation by Anaconda indicates that the Plateau and its slopes have the potential to host +200 Mt of limonite ore grading 1% nickel. To this resource the cobalt potential of approximately 0.1% can also be added. The auger drilling and pitting did not intersect much of the underlying and generally higher grade saprolite ore. This resource potential may be similar to that of the limonite ore and can also be added to the potential indicated by Anaconda.

This resource potential can be summarised as:

Limonite Ore 200 Mt of 1% nickel and 0.1% cobalt and
Saprolite Ore 200 Mt of 1.25-1.5% nickel

Much of the previous auger drilling and pitting were too shallow to test adequately the limonite ore, and in many cases failed to encounter the saprolite ore or ended in mineralization. The potential resource needs to be further evaluated with diamond drilling to test both this limonite ore and the underlying poorly tested saprolite ore. The underlying saprolite ore is suggested to be as thick as the overlying limonite ore. Geophysical techniques such as magnetics and ground penetrating radar may help better definition of bedrock rock types and thickness of laterite profiles.

The large size of the 20 km by 5-7 km Mambare Plateau, compared with the 7 km by 2-3 km envelope of known mineralization at the nearby Wowo Gap, gives a large potential area of mineralization and the possibility of a significant resource.

Based on an independent geological report prepared by Baxter Geological











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