Fisher East Nickel Project

Background

The Fisher East Nickel Project is located approximately 430km north of Kalgoorlie, 223km north of Leonora and 145km northeast of Leinster in the North-Eastern Goldfields region. The project consists of eleven granted exploration licences covering a total of 330.6km2.

The project contains four nickel sulphide deposits consisting of Musket, Camelwood, Cannonball and Sabre. These deposits are typical Archean komatiite-associated deposits having affinities with Kambalda-style Type 1 contact ores.

The Fisher East Project has the following JORC 2012 Mineral Resource estimate:

DepositCategoryTonnes (Mt)Grade Ni %Contained Metal Nickel (kt)
CamelwoodIndicated1.72.034.0
Inferred0.31.55.0
TOTAL2.02.039.0
CannonballIndicated0.242.97.0
Inferred0.021.90.3
TOTAL0.262.87.3
MusketIndicated0.92.119.0
Inferred1.51.826.4
TOTAL2.41.945.5
Sabre
Inferred1.81.424.5
TOTAL1.81.424.5
TOTALIndicated2.82.160.0
Inferred3.61.656.2
TOTAL6.41.8116.3

Note: Cut-off grades: Camelwood, Cannonball 1.0% Ni; Musket, Sabre 0.9% Ni. Values may not sum due to rounding.

Exploration History

1970 - 1990

Limited low level regional exploration for nickel as part of a general interest following the Poseidon boom of the late 1960’s.

1990 - 2000

CRA and Delta Gold completed substantial RAB drilling programs with accompanying multielement assays
over the ultramafic sequence including the ore – position contact south of Musket. Anomalous PGE results at Sabre returned in 1993. 

2000 - 2011

WMC/BHP conducted regional exploration across the Mt Fisher belt which resulted in drill intercepts of minor nickel sulphide mineralisation at the AK47 and Red Bluff prospects. IGO also drill tested selected airborne EM anomalies following the AK47 discovery including areas adjacent to AK47 and the Sabre prospect before withdrawing from the project

2011

During 2011, Rox Resources conducted airborne magnetics on 50m line spacing and VTEM surveys over three areas one of which covered the northern most part of the prospective ultramafic package.

2012

In October 2012 Rox drilled 34 RAB holes and 5 follow up RC holes to test the MFA-04 and MFA-05 VTEM targets. The RAB results announced on 5 October 2012 returned 12 metres grading 0.12% Ni from 32 metres downhole at MFA-05 with the best nickel geochemistry lying directly over the VTEM anomaly. RAB results at MFA-04 returned shallow intercepts such as 28m at 0.28% Ni and 8m at 0.4% Ni with anomalous copper and PGEs.

Results from the follow up RC drilling confirmed a nickel discovery at MFA-04 on the 19 December 2012 with semi massive and strongly disseminated sulphide intersections observed in all 5 RC holes. The results returned an intersection of 20m at 1.1% Ni in hole MFEC004, including 6m at 1.4% Ni and 5m at 1.5% Ni. The other holes returned 2m at 1.6% Ni in hole MFEC001, 4m at 2.0% Ni in hole MFEC002, 2m at 2.2% Ni in hole MFEC003 and 1m at 3.0% Ni in hole MFEC005 with anomaly MFA-04 renamed Camelwood.

The first diamond hole MFED001 returned 11.4m at 2.9% Ni from 282.6m including 2.9m at 4.7% Ni indicating high tenor nickel mineralisation. Ground EM and further airborne EM surveys were subsequently conducted over the ultramafic package and the mineralisation was drilled extensively over the next year to define a maiden combined Indicated and Inferred resource in 2013 of 1.6Mt at 2.2% Ni at Camelwood.

2014

In September 2014, Rox Resources announced a maiden Mineral Resource Estimate (MRE) for Musket added another 2.1Mt at 1.8% Ni (for 37,500 tonnes of nickel) bringing the total Fisher East MRE to 3.6Mt at 2.0% Ni for 72,100 tonnes of nickel. This included a very high grade zone of 100,000t at 10.1% Ni with Indicated Resources accounting for 52% of the total resource

2015

During 2015 A/C drilling intercepted anomalous Ni at Sabre, approximately 6km south of Musket. Follow-up intercepts of 10m at 1.9% Ni and 16m at 1.3 % Ni in shallow RC holes were recorded. In addition, preliminary metallurgical studies and a scoping study on Camelwood, Cannonball and Musket were completed.

2016

In February 2016 a new combined Mineral Resource was announced of 78.0 kt contained Ni. An external review by Mining One and prefeasibility studies commenced, however both were terminated before completion with Rox winding back nickel exploration due to the prevailing low nickel price conditions.

2017 - 2018

Exploration over this period was limited to 2-3 holes at each of Camelwood, Musket and Sabre following up DHEM anomalies. Limited regional AC drilling was also completed over the southern extremities of the prospective ultramafic belt.

2019 - 2020

Minimal nickel exploration over this period as Rox’s focus pivoted to gold exploration.

2021

Tenements transferred to Cannon Resources Limited and the resumption of nickel exploration on Cannon’s listing on the ASX in August 2021.

Local Geology and Mineralisation

The Fisher East Project is located 430km north of Kalgoorlie. The geology represents the eastern most margin of the Mt Fisher Greenstone Belt with the nickel prospective ultramafic package forming a north east trending magnetic high ridge in the airborne magnetic data. Detailed drilling indicates the geological sequence is overturned, dipping steeply to the north east and younging to the west.

The Fisher East Project deposits consisting of Musket, Camelwood, Cannonball and Sabre, are typical Archean komatiite-associated deposits having affinities with Kambalda-style Type 1 contact ores.

The mineralisation at The Fisher East Project sees the mineralisation at Camelwood extending over several hundred metres along the basal contact with a typical sequence of massive sulphides stratigraphically overlain by matrix and disseminated sulphides.
At Cannonball, mineralisation is variable with zones of stringers, disseminated and blebby sulphides over thicknesses of 1m to 5m.

Current Exploration Program

A review of existing drilling confirms Musket mineralisation has minimal structural modification with bulk of the JORC 2012 resource of 45.5 kT Ni contained within a steep northerly plunging primary channel facies with mineralisation subcroping below ~10m of cover.

The main channel has thicker high grade mineralised central axis or keel up to 15m thick with ultra high grade basal massive sulphide (up to 0.9m @ 19-20% Ni), which is a priority target for DHEM.

The high grade mineral trend north of Musket is interpreted to be a parallel overbank or secondary channel system. This trend remains outside of Musket JORC resource and is sparsely drilled.

Accordingly, the current drill program objectives include:

  • extending the resource envelope down-plunge and below 400m RL on the main Musket channel; and
  • quantify and infill the parallel mineralisation trend on the northern side of the orebody

A new geological and DHEM interpretation with assistance from consultants Model Earth and Newexco defines dual controls on mineralisation:

  • a northern structural plunge
  • parallel southern primary channel plunges


The mineralisation along primary channel facies plunge only modestly tested and is open at depth. EM plate models untested up and down plunge.

The current drill program is concentrated on testing zones along the interpreted primary plunge and EM plates.

Mineralisation consists of massive to semi-massive sulphide with high grade nickel. The mineralisation subcrops (0.5 – 1m cover) and is open along strike and at depth. There has been minimal existing DHEM completed and none at base of mineralisation trend.

Current drilling program will infill drill at 300mRL to an 80m hole spacing below mineralisation trend. All new and existing holes at base of mineralisation to be DHEM surveyed (currently unsurveyed) with subsequent follow-up drilling of EM targets.

All advanced prospects on the basal contact. They are all potential nickel bearing channel systems and are the focus of Cannon’s regional AC drilling program.