Widgie posts another WA nickel resource update

Widgie Nickel (ASX:WIN) has posted yet another resource update for its Western Australia project portfolio, this time from the Widgie Townsite zone within its Widgie South project.

It’s the fourth of 6 planned resource updates from within the wider Mt Edwards area, which is home to Widgie South, and precedes a planned Scoping Study for the region.

Widgie says with Widgie Townsite mineral resource estimate (MRE) now stands at 2.5 million tonnes @ 1.53% nickel for 38,260 tonnes of contained nickel, with 69% of the metal now classified in the ‘indicated’ category — an increase of 32% compared to the previous 2021 MRE update for the area.

However, Widgie’s new update represents a small dip in overall contained metal compared to the previous resource, which was reported in June 2021 at 2.47Mt @ 1.6% nickel for 39,300 tonnes of contained nickel.

Nevertheless, the Widgie Townsite MRE now includes platinum, palladium, and gold (3PGE), equating to 6,350 ounces of gold, 7,965 ounces of platinum, and 16,650 ounces of palladium. 

Widgie Nickel’s latest MRE update means that 71% of the total contained nickel at the Widgie South project area now sits in the ‘indicated’ category, and it brings the total Mt Edwards Nickel Resource to 190,300 tonnes of contained nickel.

Managing Director and CEO Steve Norregaard says while nickel grades have been ‘marginally reduced’ with this latest MRE update, the company is now ‘better armed with no surprises in store’ and an underlying mining rationale for its Scoping Study to accommodate ‘all possible scenarios’. 

A modest reduction in overall contained metal is evidence of the rigour and the drilling effort we have put into Widgie Townsite to get it right!

Alongside Gillett and WIdgie 3, over 90,000 tonnes of nickel metal is now defined, which will underpin a restart of mining at Mt Edwards.”

“A modest reduction in overall contained metal is evidence of the rigour and the drilling effort we have put into Widgie Townsite to get it right!”

Norregaard adds that Widgie’s 12 resources near to each other make for a ‘wonderful opportunity’ to build a long-life, low-risk mining operation in the medium term. 

Widgie Nickel is in the process of completing its Scoping Study for the Widgie South project, which will explore a multi-mine operation to support a standalone nickel concentrator. 

The company says while this MRE update will inform the pending study, additional drilling will be required to convert any areas of outstanding lower-confidence ‘inferred’ material into the indicated category.

This will subsequently allow for the conversion of this material into a mining reserve, and Widgie says further drilling at depth below existing mineralisation represents an ‘excellent’ high-confidence target to add additional resources. 

The Mt Edwards project comprises the Widgie South, Widgie North, Widgie West, and Lake Eaton-Mt Eaton regions. 

Widgie Nickel had around $6.1 million cash and cash equivalents at hand as of 30 September, according to its latest quarterly report. 

Write to Joshua Smith at Mining.com.au

Images: Widgie Nickel
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Written By Joshua Smith
Joshua Smith has years of experience in the media sector, having worked as a markets reporter, features writer, and editor since completing a Communications and Journalism degree and a Creative Writing degree. Josh is an avid board game fan and a self-professed coffee snob.