The Australian-based miner said its exploration campaign with joint venture partner Sojitz Group, through augur drilling programmes carried out in March and May, had identified two main areas of mineralistions above 1 per cent that covered an area of 7 square kilometers.
Managing director John Gooding said the exploration results were encouraging and discussions were in place with Sojitz to determine the next steps for Sewa Bay.
“The campaign has confirmed an extensive area of nickel laterite that, with further work, may have the potential to lead to declaration of a resource and ultimately development of a modest mining project,” Gooding said.
Highlands Pacific said the campaign involved 303 augur holes totalling 545 metres, and three pits were dug to a depth of 2 metres.
The drilling was aimed at testing thicker nickel laterite zones formed over ultramafic units which cover some 50 square kilometres.
Highlands Pacific owns the exploration licence (EL) 1761 that is located on Normanby Island near Esa’ala and Sewa Bay in Milne Bay.
The exploration programme budget of USD$460,000 (K) for the project was funded by Sojitz.