Alliance Nickel (ASX:AXN) has increased the global Mineral Resource Estimate (MRE) at its flagship NiWest Project in Western Australia by 9.6% to 93.4Mt @ 1.04% nickel and 0.07% cobalt.
About 805,000 tonnes of contained nickel or 83% of the global MRE is now in the measured and indicated JORC category.
The updated MRE includes total metal tonnes increasing to 971,000t of contained nickel (previously 878,000) and 65,000t of contained cobalt, representing an 11% and 18% increase, respectively.
The $37.74 million market capitalisation company says the updated MRE follows a 9,126m drilling program conducted by SRK Consulting (Australasia), which prepared multiple MREs for the Mt Kilkenny, Hepi, Eucalyptus, and Wanbanna nickel deposits.
Alliance notes the improved MRE materially extends the first stage of the mine plan at Mt Kilkenny, improving the life of mine operating costs and deferring sustaining capital expenditure.
Alliance Nickel Managing Director and Chief Executive Officer (CEO) Paul Kopejtka says the increase in resources underlines the company’s vision that NiWest will be an ethical and sustainable producer of nickel and cobalt sulphate products.
“The program has resulted not only in an increase in global resource tonnes but significantly, a slight increase in head grade further underpinning the view that NiWest is one of the highest grade undeveloped nickel laterite projects in Australia.”
The NiWest project has access to existing primary mining infrastructure such as an established network of roads, a railway, and gas pipeline and sits adjacent to Glencore’s (LON:GLEN) Murrin Murrin Operations.
Alliance Nickel had $6.597 million cash and cash equivalents at hand as of 30 September 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Alliance Nickel