(MENAFN- ProactiveInvestors - Australia) Forge Resources (ASX:FRG) has identified high order airborne electromagnetic anomalies associated with base metal deposits at its Fraser Range West Eucla project in Western Australia.
West Eucla is located 20 kilometres south of Sirius Resources' (ASX:SIR) recent Nova nickel-copper discovery and directly south east of Sheffield Resources (ASX:SFX) Red Bull project within the newly identified Fraser Range nickel province.
The airborne TEMPEST geophysical survey by Fugro Airborne Surveys achieved the main objectives including identification of electromagnetic anomalies associated with base metals deposits and location of base metals deposits.
Fugro completed the airborne TEMPEST Geophysical survey on a 400 metre line spacing over the entire project area.
It identified numerous anomalies with three areas of the greatest significant within the project area being defined by a cluster of high order electromagnetic anomalies in each area.
The first cluster appears to occur as a line of anomalies that is orientated along an interpreted regional structure, a geological contact between granite/gneiss in the Nornalup Complex and northwest trending faults that is offset the major fault area.
The second cluster appears to be steeply dipping conductor, lying on an interpreted North-northeast striking lithological boundary and associated with a discrete magnetic low.
The third cluster is in the north and lies in the north to south direction.
All the three clusters require follow up investigations and detailed work. Forge will conduct ground geophysics to enable higher resolution of these anomalies before drill testing those that show further potential.
Forge also mapped the palaeochannels to assist with heavy mineral sands exploration at the McLaren Heavy Mineral deposit.
Forge had entered into a farm-in agreement in October 2011 whereby it has the right to earn 50.1% interest of the project by spending $2 million within two years.
It also has the option to either earn a further 28.9% interest for a total of 80% by spending another $4 million over a further three year period or acquire the project outright with a payment of $7.5 million and the grant of a 1.5% gross sales royalty.
Forge's primary project is its 75% interest in the advanced Balla Balla Vanadium-Titanium Magnetite project that it recently acquired from Atlas Iron (ASX:AGO). It is close to completing a revised definitive feasibility study there.
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