30/06/2021 - 12:12

Significant WA nickel sulphide resource boost for Neometals

30/06/2021 - 12:12

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Neometals has delivered significant increases in contained nickel resources at its Mt Edwards project near Kambalda in WA. A bumper 51 per cent jump at the 26N deposit and 45 per cent lift for the McEwen deposits have contributed to a hike in global resources at the former mine to 162,510 contained nickel tonnes grading at an average 1.6 per cent.

Neometals’ 100 per cent owned Mt Edwards tenure in WA. The map shows the updated nickel sulphide resources. Credit: File

ASX-listed Neometals has delivered significant increases in contained nickel resources at its Mt Edwards project near Kambalda in Western Australia. A bumper 51 per cent jump at the 26N deposit and 45 per cent lift for the McEwen deposits have contributed to a hike in global resources at the former sulphide nickel mine to 162,510 contained nickel tonnes grading at an average 1.6 per cent.

Mt Edwards 26N now clocks in at 871,000 tonnes at 1.43 per cent nickel for 12,400 tonnes of contained metal. Previous estimates from late last year returned 8,210 tonnes of contained nickel.

McEwen and McEwen Hangingwall now combine for 3.094Mt at 1.4 per cent nickel for 41,500 contained tonnes of nickel, up from 28,220 tonnes previously reported.

Total resources at Mt Edwards now come in at 10.215Mt at 1.6 per cent nickel in the inferred and indicated categories.

Previous estimates returned 8.743Mt at 1.7 per cent for 147,000 tonnes of contained nickel.

The 100 per cent owned Mt Edwards tenure covers more than 300 square kilometres and takes in about 50km of strike over and around the renowned Widgiemooltha Dome structure which has hosted several historical nickel mines.

Mincor Resources is currently developing the Cassini mine on the Widgiemooltha Dome along strike from Neometals’ project. Mincor has defined a 1.5Mt resource going at 4 per cent nickel for 58,700 tonnes of contained metal.

Mt Edwards 26N has also seen historical production with a reported 25,632 tonnes of nickel mined between 1981 and 1994 at a 2.69 per cent head grade.

The Mt Edwards resource bases consists of 11 deposits stretching along some 15km of strike along the Widgiemooltha Dome.

McEwen and McEwen Hangingwall lie 250m apart in the northern end of the strike with Mt Edwards 26N about 10km to the south.

The resource update follows a review of historical Mt Edwards data Neometals has been evaluating since mid-2019.

Re-interpretation of historical records and newly discovered data has contributed to the new resources estimate, according to management. They say newly uncovered data has also resulted in small reductions to the Zabel and Widgie Townsite resources, with only nickel sulphides in fresh rock now included in estimates.

In the future Neometals plans to drill-test McEwen, McEwen Hangingwall Mt Edwards 26N and Widgie Townsite for depth and strike extensions.

Down-hole electromagnetic surveys are also envisaged to aid in locating nearby nickel sulphide mineralisation.

The company says the planned works may feed into further resource updates and pave the way for mining studies at McEwen, McEwen Hangingwall and Widgie Townsite.

 

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au

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