TSX-V-listed Sienna Resources has completed its drill programme on the Slättberg nickel/copper/cobalt project, in Sweden, with samples set to be shipped to ALS Global next week.
In 2018, Sienna intersected 13 m averaging 0.32% nickel, 0.28% copper, 0.034% cobalt and 0.32 parts per million platinum and palladium in drill hole SIE-18-005. As a follow-up to the hole, Sienna drilled hole SIE-19-001, which represents a 50 m step out to the west and down-dip of the mineralisation intersected in hole SIE-18-005. SIE-19-001 was drilled to a depth of 259.5 m.
Based upon a visual inspection by the head geologist at the drill, drill hole SIE-19-001 intersected bodies of semi-massive to massive sulphide mineralisation and breccias over a 4.625 m interval from 168 m to 172.625 m, with additional masses of sulphide mineralisation and breccia that persisted to a depth of 195 m.
The sulphide mineralisation intersected in 19-001 was also associated with a swarm of diabase (mafic) dikes, which persisted to the end of the hole at 259.5 m.
The company said that the presence of visible sulphide mineralisation distributed over a 27 m interval in the drill hole and the intensity of the dike swarm could suggest that Sienna was tapping into a "feeder zone" for the system.
“We are excited to see what the assays come in at,” commented Sienna president Jason Gigliotti.
He added that the company would focus on nickel assets, as it believed the metal would be one of the best performing ones in 2020.
“The two-year planned ban of exports from Indonesia will spur a tightening in supply at a time with larger demand. This historic demand is growing as new uses for nickel, such as electric batteries, gain momentum on a global scale. Nickel inventories are near 40-year lows as stockpiling has been occurring with anticipation of tighter supplies and potential trade wars persist. Indonesia produced approximately 16% of global nickel mine production in 2017 and approximately 24% in 2018. Taking that production out of the market could have a significant impact on nickel prices. As an example Saudi Arabia produced about 12% of global oil output in 2018.
“Sienna plans to focus on nickel assets going forward as we feel this will be the best place to be in the foreseeable future."