NickelSearch and Allkem ink collaboration agreement

Nickel sulphide explorer NickelSearch (ASX:NIS) and lithium chemicals company Allkem (ASX:AKE) have agreed to work in technical collaboration on the lithium prospectivity at the Carlingup Nickel Sulphide Project in Western Australia. 

Under the collaboration, Allkem will review lithium-related data for Carlingup and advise on target generation and prioritisation, says NickelSearch. 

NickelSearch shares have since risen by 129% to $0.071 as of 1:30pm AEST.

This agreement is not yet at the level of a formal lithium joint venture (JV) and there is no guarantee that the technical collaboration will lead to a formal agreement in the future, NickelSearch says. 

The company will undertake additional rock chip and stream sediment sampling to refine ‘high priority’ lithium target areas. 

Other exploration activities being undertaken include Allkem reviewing NickelSearch geochemical results for elements that act as indicators for lithium specific to the project area.  

This collaboration follows Allkem’s review of existing NickelSearch lithium datasets, including rock chip samples, soil sampling, and review of geophysical surveys.   

Commenting on the collaboration, NickelSearch Managing Director Nicole Duncan says: “NickelSearch is excited to commence working in technical collaboration with Allkem, the owner and operator of the Mt Cattlin lithium mine in Ravensthorpe, located just 10km away from Carlingup. Given the similar geology between Mt Cattlin and Carlingup, the companies have agreed to work together to assess the lithium potential of our project. 

The exploration team at Mt Cattlin is sharing its vast technical expertise on greenfield lithium exploration and NickelSearch is sharing the data from the work completed to date. These discussions are based on the spirit of partnership, where success sets both companies up well to negotiate further steps in the relationship.”

NickelSearch is an ASX-listed nickel sulphide explorer focused on advancing its flagship Carlingup project near Ravensthorpe in Western Australia. 

The project has an existing resource base totalling 155,000 tonnes of contained nickel and is strategically situated in the same greenstone corridor as IGO’s (ASX:IGO) Forrestania nickel mining complex. 

Allkem is headquartered in Buenos Aires, Argentina and holds a portfolio of lithium brine operations in Argentina, as well as hard-rock lithium operations in Australia and a lithium hydroxide conversion facility in Japan.  

NickelSearch had $1.9 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report.

Write to Adam Drought at Mining.com.au

Images: NickelSearch
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.