NickelX Limited (ASX:NKL) has commenced exploration activities at the Cosmos South Nickel Project after receiving overwhelming shareholder support to acquire the Western Australian Project.
The Cosmos South Nickel Project is located 10km south of the world-class, high-grade Cosmos Nickel operations and 20km north of the world class Leinster Nickel operations, within the prolific Wiluna Greenstone Belt (WGB).
Pursuant to the initial Terms Sheet, NickelX agreed to an exclusive option to purchase the Cosmos South Nickel Project and, subject to shareholder approval, exercised the option within the relevant timeframe.
According to the exercise of the Option, NickelX will earn a 100% interest in the Project by undertaking exploration expenditure of not less than $500,000 over a 24-month period and making milestone payments of $150,000 in NKL shares 12 months from the date of the Terms Sheet and $150,000 in NKL shares 24 months from the date of the Terms Sheet.
NickelX has contracted Drone Geoscience Pty Ltd to undertake a Drone Magnetic survey in the June Quarter and Southern Geoscience Consultants Pty Ltd to process the data to further map ultra-mafic rocks and identify drill targets.
The Cosmos South Nickel project ranked highly on our target list and following our due diligence, approval of shareholders and now exercise of the Option the team are excited to get on the ground with drilling on the basis of geological interpretation, upgrading magnetics indicating ultramafic rocks and re-compiling very strong and large bedrock conductors,” Managing Director Matt Gauci said.
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.