Sirius Resources: ASX 8-bagger in one day 

(MENAFN - ProactiveInvestors - Australia) Sirius Resources (ASX: SIR) is sure to have broken some ASX records today with its share price skyrocketing over 650% on news it may have a major new nickel-copper discovery on its hands at its 70% owned Fraser Range project in Western Australia.

Shares hit an intra-day high of A0.45 at 4.03pm (AEST). At a trading volume of 55 million shares, Sirius has traded one third of its shares today.

Sirius has discovered significant nickel and copper sulphide mineralisation in the first reverse circulation drill hole at Fraser Range .

This discovery, named the Nova deposit, defines an entirely new unexplored nickel province in which Sirius and its major shareholder, Mark Creasy, are the dominant land holders.

The Nova deposit is located in a previously unexplored and inaccessible area, beneath transported overburden, and was discovered with the first drill hole designed to test a very large (1,000 metres long by 300 metres wide) electromagnetic conductor " one of three electromagnetic conductors at the Eye prospect.

The notable intersection was 4 metres at 3.8% nickel and 1.42% copper. The mineralisation represents a totally new style of nickel-copper sulphide deposit.

A step-out hole has since intersected 15 metres of similar matrix to massive style sulphide mineralisation some 55 metres up-dip from the discovery hole. Assays for this hole are awaited.

The electromagnetic model indicates sulphide mineralisation may continue for a further 200 metres down dip from the discovery hole on this drill section.


Potential for high quality concentrate

While it is early days on the exploration front at this new discovery, it appears to tick all the boxes.

The associated silicate minerals are unlike those found in most Goldfields-style nickel deposits, and the sulphides are likely to be highly amenable to conventional separation techniques, suggesting the likelihood of producing a clean, high grade concentrate.

In contrast to the typical Goldfields-style nickel deposits, the crystalline nature of the Nova host rock is also likely to be favourable in terms of ground stability and degree of mining dilution.

It is not yet known if the mineralisation also contains platinum group metals, however definitive assays are awaited.

The deposit is only 40 kilometres north of the Eyre Highway and closer, via sealed road, to the port of Esperance than any nickel mine in Western Australia.


Drilling progress

The success of the three hole reverse circulation drill program has led Sirius to extend the program, and reverse circulation drilling of the uppermost part of the deposit is ongoing, with a deeper diamond drill program to follow within two to three weeks.

The Nova discovery is the first of three electromagnetic conductors to be tested at the Eye prospect.

The other two nearby electromagnetic conductors have also been described by Newexco as being strong anomalies with the conductivity characteristics of massive sulphides.