ASX-listed battery chemical producer Alliance Nickel (ASX:AXN) has shipped 6 tonnes of ore from the NiWest Nickel-Cobalt Project in Western Australia to SGS Canada as part of the offtake customer qualification process.
The company reports the ore has been shipped for pilot scale processing using the proposed NiWest flowsheet, which is expected to produce a bulk sample of premium ‘battery-grade’ nickel sulphate to be provided to Alliance’s offtake partner and global automaker Stellantis (BIT:STLAM).
Additionally, Alliance says it is in discussions with several other tier-1 global automakers and equity investors for future product offtake, with further announcements expected in the second half of 2023.
Alliance also reports ‘key’ work streams for a Definitive Feasibility Study (DFS) are progressing on schedule, with a current focus on the finalisation of optimisation studies, process flowsheets, mass balances, and preliminary engineering designs. Cost estimates are well advanced, with pricing for most major equipment packages having been received.
There has been a ‘strong’ response from the market, with 8 contractor groups having been engaged in the Request for Quotation (RFQ) process for contract mining at NiWest.
All groups have recently visited the proposed Mt Kilkenny mine and infrastructure sites, as well as the Hepi and Wanbanna tenements. These RFQ bids are expected in Q3 2023 and will be incorporated into the DFS.
Alliance also reports talks are progressing ‘well’ with logistics providers Qube (ASX:QUB) and Aurizon (ASX:AZJ) for the transport of sulphur and other key process reagents from the Port of Esperance to the project site and ‘battery-grade’ nickel and cobalt products to the Fremantle port for export to overseas customers. Additionally, discussions are underway with several global suppliers of sulphur.
A revised mine plan design is also underway, incorporating results from recent geotechnical drilling for pit design and geometallurgical ore characterisation testing to further understand the nickel recovery and acid digestion characteristics of the Mt Kilkenny orebody.
In addition to the Mt Kilkenny, Eucalyptus, and Hepi deposits, which were included in the Prefeasibility Study (PFS) mine plan, the Wanbanna deposit will also be incorporated into the final DFS mine plan, which could provide an opportunity to extend the mine life beyond 25 years.
Commenting on the DFS advancement, Alliance Nickel Chief Executive Officer (CEO) and Managing Director Paul Kopejtka says: “This continues to be an exciting time for the company, with positive progress being made on all fronts. The collection, crushing, blending, and transport of bulk ore sample from site to Canada for processing and customer qualification is an important step in our offtake strategy.
We are particularly eager to provide our strategic partners with premium battery-grade product samples to further embed our position as supplier of choice of battery-grade chemicals.
“We are particularly eager to provide our strategic partners with premium battery-grade product samples to further embed our position as supplier of choice of battery-grade chemicals”
The Definitive Feasibility Study and detailed engineering is proceeding according to plan. In conjunction with our partners, potential service providers, and suppliers, we have assembled an excellent team which is well-equipped to deliver on this important milestone in the fourth quarter of this year.
We are developing a project that will contribute significantly to sustainable low-carbon transportation, and we look forward to providing further updates in the coming months.”
Alliance also reports it recently appointed Blackbird Commodity Partners as financial advisor to support the company’s project financing strategy. Blackbird is a specialised natural resources financial advisor with an ‘extensive’ track record advising companies for mining and resources projects.
Debt financing alternatives are being evaluated and advanced in parallel with the DFS, and Alliance notes it is targeting to complete the project financing process in the first half of 2024.
Alliance Nickel is an ASX-listed nickel and critical minerals development company focused on its flagship NiWest Nickel-Cobalt Project in Western Australia.
Write to Harry Mulholland at Mining.com.au
Images: Alliance Nickel Ltd
