UPDATE 2.20pm: Investors excited at the prospect of Sirius Resources mirroring the success of its Nova project at the neighbouring Polar Bear project have sent shares in the explorer sharply higher.
Sirius this morning announced nickel and copper hits in the first hole drilled at its Taipan prospect in the Polar Bear project near Norseman.
Fresh from announcing positive results from a definitive feasibility study for its Nova project near Balladonia, Sirius announced this morning high-grade mineralisation in the first hole drilled at Taipan, about 100km to the west.
"An EM (electro-magnetic) program will commence as soon as possible to focus a substantial follow up drilling campaign," the company said.
Sirius also announced it had identified a distinct, deep EM conductor 650 metres north of, and beneath, its Nova deposit.
"This is the same system previously used by BHP to detect the Venus deposit at its Leinster Nickel Operations," the company said.
Sirius managing director Mark Bennett said he was pleased and surprised to get a result with the first hole into a 10km-long target horizon at Taipan.
"In parallel with this, the Samson DPEM (deep penetration electro-magnetic) system is working well and has produced a compelling target down plunge of the Nova deposit in a location readily accessible from planned underground development," he said.
Sirius announced on Monday its $473 million Nova project was financially robust and should deliver one of the world’s lowest-cost nickel operations with a lifespan of at least 10 years.
The company wants to begin construction on the mine early next year.
Sirius discovered Nova two years ago, with investors heralding it as one of the best mineral discoveries in Australia in the past decade.
Sirius shares were up 51 cents, or 14.83 per cent, to $3.95 at the close after touching an earlier high of $4.10.