Kuniko reveals new EM Conductors

A whiff of scale…

Will drilling produce high grade results?

Yesterday, our European critical minerals Investment Kuniko (ASX: KNI) revealed that recent EM surveys at their large nickel-copper project in Norway had three conductors.

Conductors are usually a good lead on potential mineralisation, so we were pleased to hear that the company thinks the project is shaping up as similar to Voisey’s Bay.

Voisey’s Bay is a mammoth nickel project in Canada owned by the $70BN capped Vale S.A, and is home to a reserve of 32.4Mt tonnes with a nickel grade of 2.13%, a copper grade of 0.96%, and a cobalt grade of 0.13% as of December 31, 2017 (Source).

For context, the resource that KNI is looking to expand is 23Mt at 0.31% NiEq at the Ertelien project in Norway, and JORC Mineral Resource Estimate upgrade is due later this year - something which we wrote about in our last KNI note:

KNI: EM conductors light up - the hunt for high grades at Ertelien begins

As for the conductors, the ground transient electromagnetic (TEM) surveys were conducted at four priority targets within the Ringerike licence area and revealed three significant conductors, underlining the project’s potential for additional nickel, copper, and cobalt mineralization.

Ringerike is the larger project area, and the Ertelien project to the south of this project area makes up a small portion of Ringerike:

(Source)

Today’s announcement notes that the TEM surveys were particularly successful at the Tysklandsgruve and Asktjern intrusions.

At Tysklandsgruve, two conductors were identified, both associated with historical mine workings.

These conductors were modelled as Maxwell Plates with a strike extent of approximately 225 metres and conductance values indicating potential semi-massive to massive sulphide mineralization at depths between 40 to 165 metres:

(Source)

That’s nice and shallow, so we think the proximity of these conductors to historical mining activities enhances their prospectivity as drill-ready targets for future exploration efforts.

As KNI learns more about the wider Ringerike area, we’re hoping a high impact drill program can unlock a major, high grade European nickel discovery.

Meanwhile, at the Asktjern target, another conductor was discovered, displaying a well-defined anomaly with a conductance value suggestive of sulphide mineralisation.

This conductor is located at a depth of around 70 metres and KNI also considers this a promising candidate for future drilling:

(Source)

We think the findings at both Tysklandsgruve and Asktjern highlight the broader district-scale potential of the Ringerike project - after all it is a big project area that comprises 405km2 of exploration area.

KNI said that further field reconnaissance is planned across the Ringerike district, with an emphasis on areas showing conductive anomalies.

This ongoing work, including mapping, sampling, and potential drill testing, aims to refine the understanding of the region’s geological structures and enhance the resource base.

What’s next for KNI?

🔄 Commence field work following up on EM survey (ongoing)

🔲 Upgrade nickel resource (expected by Q4-2024)

🔲 Early stage feasibility studies (start end of 2024)