Fisher East Nickel Project

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

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. 

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.

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

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 5 m at 1.5% Ni. The other holes returned 2 m at 1.6% Ni in hole MFEC001, 4 m at 2.0% Ni in hole MFEC002, 2 m at 2.2% Ni in hole MFEC003 and 1 m at 3.0% Ni in hole MFEC005 with anomaly MFA-04 renamed Camelwood.

The first diamond hole MFED001 returned 11.4 m at 2.9% Ni from 282.6 m including 2.9 m 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 1.6 Mt at 2.2% Ni at Camelwood.

In September 2014, Rox Resources announced a maiden Mineral Resource Estimate (MRE) for Musket added another 2.1 Mt at 1.8% Ni (for 37,500 tonnes of nickel) bringing the total Fisher East MRE to 3.6 Mt 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 resources.

During 2015 A/C drilling intercepted anomalous Ni at Sabre, approximately 6 km south of Musket. Follow-up intercepts of 10 m at 1.9% Ni and 16 m 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.

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.

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.

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

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

Defined a maiden JORC Resource at Sabre of 2.9 Mt at 1.5% for 42.3 Kt of contained nickel. Increased the Fisher East Project MRE to 7.5 Mt at 1.8% for 134.1 Kt of contained nickel.

Cannon Resources was removed from the Australian Securities Exchange (ASX) in February 2023 following its acquisition by Kinterra Capital. Kinterra Capital is a Toronto-based private equity firm that invests in the people, ideas, critical materials, and strategic infrastructure necessary to accelerate the development of the modern economy. Under new ownership, Cannon Resources undertook an aggressive drilling program consisting of 30,386 m. Cannon increased its JORC Resource to 13.1 million tonnes at 1.8% Ni of Indicated and Inferred mineral resources, a 75% increase from the previously reported resource. An Audio-frequency Magnetotellurics (AMT) survey across Camelwood, Cannonball and Musket was conducted.

Significant upgrades were made to the camp to better accommodate and support the expansion of exploration operations and technical studies. 49,000 m of diamond drilling led to an increase in the total JORC Resource to 18 million tonnes at 1.9% Ni, containing 338.5 kt of nickel. This represents a 37% increase from the previously reported resource. Diamond drilling progressed Geotechnical, metallurgical, and hydrological studies. Groundwater, flora and fauna studies progressed throughout the year.

Extensional drilling at Musket added inferred resources and increased the JORC Resource to 20.6 million tonnes at 2.0% Ni for 410.7 kt of nickel, representing a 14.4% increase in tonnes from the previously reported resource. Additional metallurgical and geotechnical test work was completed on new and existing drill core. A PEA, involving a complete review of the mine plan, commenced late in the year. Environmental baseline data collection and hydrogeological investigations to inform water sourcing strategies and permitting continued. One mining lease and seven miscellaneous licences were granted. Cannon also commenced mining agreement negotiations with the traditional owners to enable granting of the two remaining mining leases, as well as continuing work to strengthen relationships with key stakeholders that will enable further project development activities.  

Cannon Resources continues to advance project development with completion of a PEA and supporting metallurgical and geotechnical studies.  The PEA results demonstrate a 15 year mine life with a average annual production of 22.0 Kt Ni, 0.5Kt Co and 10.4 Koz Pd.  Environmental baseline data collection continues along with hydrogeological investigations defining water sourcing strategies and permitting pathways. Tails dam site investigations commenced, with detailed design scheduled for later in the year. Mining agreement negotiations continue alongside the development of cultural heritage management plans.  Work is ongoing to strengthen already established relationships with key stakeholders and progress the granting of mining leases required to support future project development and approvals.