Segue Resources Ltd MMG Limited advance gravity survey at Plumridge

Segue Resources Ltd (ASX:SEG) is one of the largest ASX-listed tenement holders in the Fraser Range Province of Western Australia.

Segue is now advancing exploration at its interests through joint ventures with Plumridge Nickel currently the focus.

Plumridge is highly prospective for massive nickel sulphide deposits.

International base metals company MMG Limited (HKEx:1208 ASX:MMG) has teamed with Segue at Plumridge and is earning an initial 51% interest in eight exploration licences by investing $6.5 million in exploration activity by December 2019.

MMG can increase its interest to 70% by investing an additional $7.5 million within two years of completing Stage 1.

MMG has four crews operating at the Plumridge joint venture with a gravity survey expected to be completed by the end of April 2016.


MMG exploration

In December 2015 MMG completed a high resolution in-fill gravity survey over four tenements within the joint venture.

The gravity survey consisted of over 6000 stations on a 400m x 200m grid to increase the gravity data coverage from 1600m x 100m (completed by Segue in 2015).

The newly acquired gravity data provided a significant increase in detail.


Next steps for MMG

Upon completion of the Phase 2 survey 80% of the Plumridge joint venture tenement package will be covered with high-resolution gravity data (400m line spacing) and the remaining 20% with 1600m line spaced gravity data.

MMG plans on merging the new gravity data with existing gravity magnetic drilling and geochemical data to identify potential nickel-copper sulphide bearing mafic-ultramafic intrusions.

The highest ranked anomalies will be selected for ground EM (moving-loop) to test for any conductive response associated with the anomalies i.e. direct detection of potential massive nickel-copper sulphides.

Initial ground EM is expected to commence in 2Q 2016 and be completed by June/July 2016.


Analysis

Joint ventures allow Segue to advance exploration over its significant tenement package in the Fraser Range.

With exploration advancing news flow from the joint venture will increase in Q2.

Segue has also been granted an R&D Tax Incentive for exploration work undertaken at the Plumridge Nickel and Plumridge Gold Projects.

The company expects to receive a tax rebate of circa $350000 (after costs) in 2Q 2016.

The tax rebate will enable Segue to continue its exploration activities at the Plumridge Gold Project and Deralinya Project.

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