Metals X Limited (ASX: MLX) has received positive news from the assay results of the recently completed infill Reverse Circulation (RC) drilling program at its 100%-owned Wingellina Nickel-Cobalt Project in Western Australia.
The Wingellina Mineral Resource extends over almost 10 kilometres within which the company has delineated 15 potential high-grade nickel-cobalt open pits which could be exploited during the first five-10 years of operation.
Executive Chairman, Patrick O’Connor, said these 15 pits represent only a small portion of what is the largest undeveloped nickel-cobalt-scandium deposit in Australia.
During 2017-2018 the company completed infill drilling of the first six starter pits (Pits 1, 3, 4, 5, 8 & 14) which successfully confirmed the targeted high-grade nickel-cobalt domains.
The Company has recently completed infill RC drilling of an additional two defined starter pits (Pits 2 & 7) with further outstanding results being returned. The drilling program, which comprised 32 RC holes for 1,416m, encountered nickel-cobalt mineralisation occurring from, or near, surface with significant intersections including: 26m @ 1.57% Ni & 0.18% Co (2.04% Nieq2) from surface 28m @ 1.98% Ni & 0.11% Co (2.27% Nieq2) from 12m 72m @ 1.32% Ni & 0.08% Co (1.53% Nieq2) from 2m 10m @ 1.36% Ni & 0.23% Co (1.96% Nieq2) from 26m.
“These drill results continue to confirm the quality of the shallow, high grade nickel and cobalt mineralisation within the previously delineated starter pits.
“The significance of the high-grade starter pits is their potential to accelerate payback on the initial investment in a full-scale development of the project, or potentially allow a smaller scale, lower capital cost start-up.
The company will be undertaking a strategic review of the project during the remainder of 2020,” Mr O’Connor said.
Wingellina is part of Metals X’s Central Musgrave Project, which is the largest undeveloped nickel-cobalt deposit in Australia. The Central Musgrave Project has a Mineral Resource containing approximately 2.0 million tonnes of nickel and 154,000 tonnes of cobalt.3
Wingellina has been the subject of an economic feasibility study proposing the production of 40,000t of nickel and 3,000t of cobalt per annum for up to 40 years based on the known resources4. In addition, Metals X has signed an agreement with the Traditional Owners which provides consent to undertake mining activities and, in November 2016, the company received its Public Environmental Review approval from the EPA.
