Breakaway Resources (BRW) rose by as much as 17% today after the nickel and base metal resource company said ongoing drilling at a newly discovered zone at its Scotia Nickel Project, located 65 kilometres north of Kalgoorlie in Western Australia, had returned a broad intersection of nickel sulphides.
These intersections have now confirmed nickel mineralisation within this zone over an area measuring 100 metres along strike and 100 metres down-dip with the zone remaining open both along strike and down-dip.
Territory said the results are considered to be highly significant, further upgrading the newly defined southernmost zone of nickel sulphide mineralisation on the Western Contact Trend
Breakaway is currently focusing its drilling activities within this southernmost zone, although it is planning to start follow-up drilling at two other recently announced zones located between 200 to 500 metres further to the north
Last Friday, Breakaway also announced that it had intersected nickel sulphide mineralisation at its recently discovered Saints Western Contact Trend, also located at the Scotia Nickel Project.
The company had previously assigned a high priority exploration focus to this area, so the discovery led support to this.
Breakaway's Managing Director, Mr Peter Buck, said this new intersection represented the first wide intercept to be returned from the current drilling at Saints and highlighted the potential for the newly discovered zones to continue to expand with ongoing drilling.
"We are very encouraged by this excellent result, which has further upgraded the Western Contact Trend as our priority exploration focus at Saints," Mr Buck said.
"Nickel mineralisation intersected at Saints on the Western and Eastern Contacts extends over a strike extent of 2 kilometres, making this project a highly attractive exploration opportunity for the Company," he added.
Breakaway also holds a 30% net profit royalty interest in the Eloise Copper Mine in Northern Queensland, which generated approximately 15.5 million in royalty earnings in 2005/06.
"With a strong cash position in excess of $16 million and a continuing cash flow from the Eloise royalty, Breakaway is well placed to realise its vision of targeting the next generation of major base metal discoveries in Australia."
Almost 1.7 million Breakaway shares changed hands today, more than six times its average daily volume.
The stock rose by 6 cents to close the day at 60 cents.
