Peak Minerals Limited announced results from the rock chip sampling program completed towards the end of 2021 at the Green Rocks Project, 35km south-east of Meekatharra in Western Australia. Between August and November, 192 individual areas were sampled and sent for analysis predominantly at Rixon, Rinaldi, The Horn, Lady Alma, Copper Hills and Tal Val. The purpose of the program was to map out lithology variation on surface to better understand the intrusions and the mineralisation association.

From this mapping and prior drilling data, a conceptual model was created which was released to the market on 20 January 2022. Upon receipt of the rock chip assays, the model required minor adjustments. In January, the 2015 VTEM was reprocessed independently as a test for the incoming Heli-EM data.

The EM model was nearly coincident with the interpreted model. With the Heli-EM data and upcoming ground geophysics work, there will be full confidence to drill targets in May 2022. The current Rixon/Lady Alma model developed by Peak suggests that shortly after deposition of the greenstone belt, a series of nearly contemporaneous pulses of magma shot along faults from a larger magmatic source.

The Company believes this to be the primary source of mineralisation. Lithogeochemistry clearly defines prospective gabbro-peridotite intrusives from the surrounding greenstone belt. Higher (>5% Cu) values showed circular or grouped patterns possibly associated with individual intrusions.

This evidence, with reprocessed legacy VTEM data, supports the conceptual model where mineralised intrusives exploit existing structures as apophyses from a magmatic source. Additionally, mapping and lithogeochemistry have highlighted the significance of a magnetite-rich zone which often surrounds the prospective intrusions. Of the 192 samples collected, 57 returned anomalous mineralisation (greater than 1% Cu) with the highest grades being: 22.7% Cu, 0.81% Ni, 7.78g/t Au, 26.8g/t Ag and up to 0.42% S. Of these samples, 42 were part of prospective intrusions rather than remobilised along shears.

Primary sulphides from Copper Hills show a 12:1 Cu:Ni ratio2, where a review of historical drilling showed values 0.31m at 13.20% Cu and 1.29% Ni and 0.92m at 6.15% Cu and 0.48% Ni. High grade secondary mineralisation at Rixon suggest similar ratios could be present in drilling. Magmatic systems that are dominated by high copper to nickel ratios are not common, but the most notable is Sakatti in Finland.

Of the anomalous samples collected, 42 are classified to be part of the prospective intrusions. The remaining mineralisation is related to copper remobilising along structures, though intrusives are often bounded by shears. A detailed 3D exploration model is currently being created, this will highlight the structural complexity and better exhibit the separate intrusives.

The interpretation is being combined with drill data from Rixon/Lady Alma/Copper Hills and reprocessing of historical EM data to further refine targets. Given the success of the 2.5D inversion on the 2015 EM data, this methodology will be applied to the 2022 Heli-EM data, an upgrade on the legacy dataset. This inversion is also an improvement on the 1D inversion done prior and better handles processing and topography effects.

Two diamond drill holes were drilled at Lady Alma in early 2021. The deepest hole CHRC005B-W1 targeted the 1D inversion conductive shapes while confirming and expanding upon historical drill data. While the hole did not hit the conductors, veins of sulphide mineralisation were intersected at depth.

Downhole EM data was acquired down the hole. The reprocessed EM data shows that the hole was targeted away from the larger conductors. Between 250-300 m the ground penetration of the EM signal diminishes, therefore the modelling does not extend below 300 m and remains open.

Improvements in depth penetration can be improved upon with ground EM, which is planned before the diamond drill program.