Ashburton Minerals Ltd (ASX:ATN) Fraser Range - EM Targets Warrant Drilling High Risk, Multi-bagger Upside Potential
The project consists of two exploration licences E63/1322 and E63/1375 located 120km ESE of Norseman and covers 290km of Proterozoic lithologies of the Biranup and Fraser Complex within the eastern Albany-Fraser Orogen.
Survey results suggested the presence of multiple EM anomalies of which 5 were regarded as high-order late-time anomalies. From these, ATN has confirmed 2 high priority EM targets as defined by modelling of the VTEMmax data. Key targets include Target 1: a 500 m x 200 m conductor, commencing 50 m below surface; and Target 2: a 350 m x 250 m conductor, commencing 35 m below surface.
We understand that both targets potentially represent bedrock conductors which might be due to massive and/or stringer Ni-Cu sulphide mineralisation.
ATN has indicated that both targets warrant drill testing to determine whether these conductors are associated with economic mineralisation.
The EM Response of both targets is observed in the profile as a double peaked, late time anomaly in the Z component data with a very strong late time crossover anomaly in the X component data which suggests steeply dipping conductors at depth.
Modelling suggests Target 1 is to be a conductive body, dipping 75 degrees to the north with 500m in strike length and extending 200m down dip with a depth to top of the body of approximately 50m.
The second target has been modelled as dipping 80 degrees to the south, 350m in strike length and extending for 250m down dip with depth to top of the conductor of 35m.
Both targets are adjacent to magnetic highs which provides support of this being represented by a bedrock feature which extends sub vertically to depth.
We consider ATN represents a cheap entry at these levels with multi-bagger upside potential from any drilling success. The southern end of the Fraser Range is largely under-explored and is likely to attract further interest as exploration continues in the region. We rate ATN a Speculative Buy.
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