LYN hits nickel-copper sulphides at Bow River.

Our exploration Investment Lycaon Resources (ASX: LYN) just put out a drilling update from its Bow River project in the Kimberley region, WA.

LYN hit ~13m of disseminated nickel copper sulphides from its first ever hole.

Hitting sulphides is significant because it generally means that an explorer is looking in the right place - sulphides are typically the host rock for high grade nickel-copper mineralisation.

Most of the worlds nickel-copper is produced from sulphide hosted orebodies.

Sulphides are also the same type of rocks that host Panoramic Resources Savannah North discovery which sent that companies share price to ~$1BN market cap at its peak.

After today’s news, we know that LYN is drilling in and around the right places…

LYN has a >1km long gravity anomaly and has now confirmed it has the right type of rocks to potentially host nickel-copper mineralisation.

All we need to see now is for the assay results to return high nickel-copper grades and for the next drillhole to confirm that the sulphide system is getting bigger across that gravity anomaly.

LYN expects to drill its next hole ~250m to the east of the first hole and drilling is expected to take up until the end of September.

Straight after the drilling is done, LYN also plans to run some downhole EM to try workout how big/where the structure extends out into.

How do today’s results stack up against our expectations for the drill program so far?

Going into the drill program we set up our expectations for the drill program as follows:

• Bull case = intercepts with nickel/copper grades >0.5%.
• Base case = Sulphides intercepted worthy of follow-up drilling.
• Bear case = No valuable metals are intersected.

After today’s announcement, LYN has already hit our “Base Case” expectation.

We also noted that LYN mentioned XRF readings confirmed nickel-copper presence so there is a chance the company delivers our bull case expectation for the drill program.

If assays come back in above 0.5% nickel-copper then we think LYN will be in a position where it has a project that is definitely worth following up with additional drilling to see if a large discovery can be declared.

Here is a side by side comparison with the Panoramic discovery hole at Savannah North.

What’s next for LYN?

🔄 Drilling at Bow River Nickel/Copper/cobalt/PGE project:

LYN will be drilling its second hole at Bow River ~250m to the east of the first diamond hole. Drilling is expected to run through to the end of this month.

In the meantime we will be watching out for assay results from the first hole.

🔄 Permitting and approvals for rare earths/niobium project:

See our most recent Quick Take on LYN’s rare earth’s/niobium projects in the West Arunta province here: LYN granted West Arunta ground near $336M WA1 Resources