NickelX Limited (ASX:NKL) has signed an Exclusive Dealing Agreement with MG Resources Pty Ltd to acquire the highly prospective Cosmos South Nickel Project.
Cosmos South is located 10km south of the world-class high-grade Cosmos Nickel operations (Western Areas) and 20km North of the world class large scale Leinster Nickel operations (Nickel West – BHP), within the prolific Wiluna Greenstone Belt (WGB), WA.
Pursuant to the agreement, NickelX has agreed to pay a $25,000 exclusivity fee to MG Resources ($1,500 in cash as reimbursement of expenditure and $23,500 worth of fully paid ordinary shares in the capital of NKL based on the 5-day volume weighted average price of NKL’s shares immediately prior to the date of the agreement, subject to escrow) in consideration for MG Resources exclusively dealing with NKL for a three month period in respect of the acquisition of the Cosmos South Nickel Project and the parties negotiating a formal earn-in agreement.
Managing Director, Matt Gauci, said the NickelX team has quickly progressed our Fire Dragon Nickel target in the Albany Fraser Orogen (AFO) through a diamond drilling programme and have generated a pipeline of additional nickel opportunities, based on our Nickel database.
“The Cosmos South Nickel project ranked highly on our target list and represents a very compelling nickel target demonstrated by geological interpretation, strong magnetics indicating ultramafic rocks and very strong and large bedrock conductors, which have not been the subject of systematic drilling.
“The Cosmos South Nickel project is one of the very few independently owned project areas within the prolific Wiluna Greenstone Belt where Western Areas and BHP dominate landholdings.”
Cosmos South M36/580 is situated within the highly endowed nickel rich region of the Agnew Wiluna Greenstone belt. The belt hosts world class nickel deposits of the Leinster Nickel Operations, Mt Keith, Yakabindie, Honeymoon Well and Cosmos.
The majority of M36/580 is covered by alluvium draining into Lake Miranda as are the Cosmos Project deposits of Prospero, Tapinos and Anomaly 3 which are buried under deep transported material within the Lake Miranda drainage system.
The southern portion of the tenure gently rises southwards and is covered by residual laterite material which is developed over/shed off from the subcropping-outcropping Archaean rocks in the tenure to the south.
These rocks to the south of the tenement host the Taurus, Sir Samuel and Sir Tristram nickel mineralisation which are highly anomalous in nickel geochemistry that continues up into the southern area of M36/580. Greenstones outcrop prominently to the north of the transported cover forming the McDonough’s Lookout which is also prospective for nickel mineralisation.
Despite being surrounded by major nickel miners, M36/580 has undergone very limited exploration and no recorded exploration reports are available. The areas of outcropping-subcropping bedrock to the south and north of the tenements have undergone considerable exploration resulting in the discovery of nickel mineralisation to the immediate south at the Taurus, Sir Samuel and Sir Tristram prospects . M36/580 is almost entirely covered by transported alluvial deposits and no systematic drilling has been undertaken on the tenure.