LONDON (ShareCast) - (ShareCast News) - Strategic Minerals shares soared as the company reported that the first drill hole at its Australian Hanns Camp project has intersected nickel sulphides.


The sulphides present include pentlandite and exist in a low level disseminated form at approximately 286m downhole, it said in a statement.

X-ray fluorescence (XRF) analysis had shown characteristics consistent with major West Australian Yilgan nickel deposits, the AIM-listed miner said.

"The drill hole is nearing completion and once it reaches the footwall of the ultramafic unit a downhole electromagnetic (EM) survey will be conducted. This will further assist with better identifying any potential nickel sulphide accumulations, that these disseminated sulphides may relate to," Strategic added.

"The project manager believes the drill hole deviated below the EM conductor target, and the planned downhole EM will help confirm this and more accurately pinpoint the conductor. Once established, this location may be revisited to drill an additional hole aimed at intercepting any further defined EM conductors."

The company said after completion of the first hole, the drill rig will move onto the second target; Stirling, to complete the second drill hole of the programme.

Hanns Camp forms part of the Laverton Project, of which Strategic Minerals recently secured an interest via its acquisition of up to a 50% of Central Australian Rare Earths Pty Ltd.

Hanns Camp is located 250km north-east of the city of Kalgoorlie-Boulder, 12km north-east of the town of Laverton in the North-Eastern Goldfields region of Western Australia.

Strategic shares were up 29% to 0.37p at 1336 BST.

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