Perth-based nickel sulphide explorer NickelSearch (ASX:NIS) has ‘significantly’ upgraded the indicated resource by 42,300 tonnes at its Carlingup Nickel Sulphide Project near Ravensthorpe in Western Australia.
The company, of which Medallion Metals (ASX:MM8) currently holds a 15.1% shareholding in, reports the updated JORC 2012 Mineral Resource Estimate (MRE) comprises 154,900 tonnes of contained nickel, of which 64,900 tonnes is from nickel sulphides. It also notes the indicated resources represent 65% of the total resource.
NickelSearch says this increase in confidence is a result of the infill drill programs completed in 2022, and notes it plans to support their existing shallow resource base through the discovery of ‘high-grade’ nickel sulphides in depth.
“We are confident that our systematic approach to exploration will deliver a nickel sulphide discovery, as we prioritise and test our prospective greenfield targets”
Commenting on the updated MRE, NickelSearch Managing Director, Nicole Duncan, says: “NickelSearch is focused on exploration for high-grade nickel sulphides at our Carlingup Project, which is underexplored at depth.
We are confident that our systematic approach to exploration will deliver a nickel sulphide discovery, as we prioritise and test our prospective greenfield targets.
We are off to a great start to our greenfields exploration program following the successful nickel sulphide intersection at Sexton. We are extremely excited to test our high-priority targets at Serendipity, B1, and the high-grade underground extensions at RAV8.
Today’s significant upgrade to Carlingup’s nickel sulphide indicated resource is an important milestone, providing a base which we can confidently grow, including at RAV8.
NickelSearch is committed to delivering value through increasing the confidence of our existing shallow resource base and progressing our heap leach processing solution, which we believe will be the most economic pathway forward.”
NickelSearch reports drilling within the exploration target areas RAV1, RAV4, and RAV4 West has confirmed the extent, width, and grade of mineralisation in each deposit.
Replacement of historic drilling in these areas with ‘high-quality’ data has mostly converted at the higher end of the exploration targets, to inferred or indicated mineral resources. The company also notes the RAV11 prospect located in between the middle of the RAV4 and RAV4 West area is another mineralised area that may add further resources.
At RAV8, NickelSearch intends to move into production as soon as practicable, aiming for a low-cost, modest-scale, open pit mining operation and heap leaching processing.
The company says there is good potential to increase the size of the RAV8 resource, noting the area south of the historic pit has limited drilling in the ultramafic units near surface. A program is currently being designed to infill drill this area, and unsampled intervals in holes drilled by Tectonic are being examined to determine their suitability for sampling.
NickelSearch reports there is further potential to capture grade continuity of ‘high-grade’ disseminated/massive mineralisation for potential underground mining at RAV8. The current resource indicated ‘high’ continuity, and the company says it is working to test this assumption.
The company will also assess the material sitting at surface at RAV8, which was mined but below the cut-off grade for processing by Tectonic. NickelSearch reports suitable material for heap leaching has an inherent value as it is already out of the ground and ready for processing.
The material sitting at surface will form part of the drilling campaign to be carried out at RAV8 during Ravensthorpe wet winter months.
At RAV5, drilling activity defined a thin, ‘low-grade’ channel from surface to an estimated 150m in depth. The company reports the grade and tonnage are too low and the reasonable prospects for eventual economic extraction process for open pit resource did not define a pit shell unless a ‘very-high’ nickel price could be realised.
NickelSearch reports it will test potential depth extensions to the deposit for ‘higher’ grade material when budgets permit.
NickelSearch is a nickel sulphide exploration company focused on advancing its flagship Carlingup Nickel Sulphide Project comprising the RAV1, RAV4, RAV4 West, RAV5, and RAV8 prospects spread along over 10km of strike length. The project is located about 500km southeast of Perth within the Ravensthorpe Greenstone Belt.
Images: NickelSearch Ltd
