COLLERINA EL 6336

The Collerina project consists of two tenements EL 6336 and EL 7227 which cover an area of approximately 402 sq km.  The area is reached from Sydney via the Mitchell Highway and is located about 40 km south of the township of Nyngan.

The tenements are located within the Fifield platinum province northwest of the laterite nickel-cobalt deposit at Syerston (80 Mt at 0.7% nickel, 0.13% cobalt) and close to the Tritton and Budgery copper gold mines and the Tottenham copper mine.

The Homeville nickel-cobalt deposit is hosted within EL 6336. The Homeville deposit was discovered by Augur Resources in 2008. This deposit has a JORC defined resource of 12.2 Mt at 0.91% nickel and 0.06% cobalt based on a cut-off of 0.7% nickel.  The nickel deposit has formed from the weathering of the near surface sections of an ultramafic unit.  The ultramafic unit can be readily identified in magnetic data and these data indicated that the unit is approximately 4600m in length. The current resource estimate is based on only a portion of the area covered by the ultramafic body (1300m or 28%) and therefore it is possible that the resource could be increased with further drilling.

In addition to the Homeville deposit, the Collerina project hosts the Yethalla nickel-cobalt mineralisation (approximately 3 km south-west of the Homeville deposit) and the Swanson’s gold mineralisation.  Small scale mining of gold and copper has also occurred within the Collerina project area.

Augur Resources is focussed on further defining the JORC resource at Homeville and testing the project area for potential nickel and copper sulphide deposits and for gold mineralisation.