Cookes Creek Nickel

Hazelwood’s focus is the Cookes Creek nickel sulphide and tungsten project located near Nullagine in the East Pilbara of Western Australia.

The project is situated approximately 220 kilometres northwest of Newman and 30 kilometres northeast of Nullagine.

History

In 1967, DFD Rhodes discovered anomalous nickel mineralisation associated with an ultramafic layered intrusion that outcrops over the entire project area. On-going geochemical sampling and ground geophysical prospecting by Carpentaria between 1971 and 1976 delineated several anomalous targets for nickel sulphide mineralisation. The most noteworthy of these is Anomaly Hill.

At Anomaly Hill, rock chip sampling returned values of up to 5.6 per cent nickel, and nickel sulphides were positively identified in outcrop. Drilling campaigns by Carpentaria, Alcoa and CRA targeted a coincident geochemical, electromagnetic and IP anomaly confirmed the presence of significant disseminated nickel sulphide mineralisation up to 2.4 per cent nickel towards the base of an ultramafic layered intrusion.

The Anomaly Hill target had been drilled to a maximum vertical depth of only 120 metres, with most of the drilling concentrated over a 300 metre strike extent, however the drilling had shown disseminated nickel sulphides over a total strike extent of 1.2 kilometres. Fewer than half of the holes drilled penetrated the prospective basal contact of the layered ultramafic sequence.

Hazelwood’s Activities

Since the Company was officially listed on the ASX on 3 October 2006, multiple campaigns of Exploration diamond drilling have been completed at the Anomaly Hill nickel sulphide target. Significant nickel sulphide mineralisation has been confirmed in the Cookes Creek layered ultramafic sequence (refer to ASX Announcements).

An airborne EM (Hoistem) survey has been flown over the entire Cookes Creek ultramafic sequence, identifying five primary exploration targets upon the ground held by Hazelwood and a further three primary targets upon an adjoining tenement held by Giralia Resources NL which is the subject of a joint venture of the Company with the Company acquiring a 70% participating interest.

A further drilling campaign was conducted in December 2007 and reported in the ASX Announcement dated 5th February 2008. This campaign demonstrated that in addition to the disseminated nick sulphides identified in the zone near the basal contact, a second zone of mineralisation has now been identified higher in the sequence.

Copper Gorge Joint Venture

Giralia Resources NL is the holder of tenement E46/562 “Copper Gorge”. This tenement is contiguous to the Company’s 100 per cent owned Cookes Creek project.

The Company entered into a joint venture agreement with Giralia on 1 November 2006. Under that joint venture the Company is entitled to earn a 70% participating interest in the tenement.

The ground contains the continuation of the layered ultramafic sequence present on the Company’s Cookes Creek project tenements. An EM survey conducted by the Company has confirmed three additional targets considered prospective for nickel and base metal exploration near the margins of the ultramafic sequence.

Copper Gorge base metal occurrence hosts significant copper mineralisation identified by historical exploration drilling by previous explorers. The EM survey performed by the Company has revealed a large conductance anomaly present under an area in which previous drilling had intersected significant copper values.