Exploration on EL1165

Initial 100 metre spaced ground penetrating radar was conducted over the identified exploration target areas followed by a drilling campaign which commenced with auger drilling in November 2014 and diamond drilling in January 2015.

Auger drilling was used as first pass infill over Koyama and Joan East to refine the location of the diamond hole with a total of 125 holes being drilled (WGDH396 – 520; 945 metres). The diamond holes followed up the auger core holes over Koyama with 40 holes drilled (WGDD001 – 040; 605 metres).

Niugini Nickel purchased a purpose built, light weight, man portable drilling rig and utilised skilled PNG drilling personnel in the operation and supervision of the rig, thus substantially reducing the operating costs of drilling as compared with using contract drilling companies. Diamond drilling was necessary in order to penetrate the lower saprolite geology which was likely to host the higher grade nickel ore suitable for direct shipping operations. The auger drilling has been unable to penetrate this lower geological unit.