Neometals Ltd (ASX:NMT) has revealed a 48,200-tonne nickel JORC resource within the Mt Edwards Lithium Project in Western Australia.
In mid-March 2018, Neometals executed binding agreements to acquire a package of tenure and mineral rights including lithium and nickel rights comprising the Mt Edwards Project.
READ: Neometals to acquire Mt Edwards Lithium Project
A detailed review of the historical JORC 2004 resource estimate was able to promote the resource to JORC 2012 standards.
The 3.05 million tonnes at 1.6% nickel for 48,200 tonnes of contained nickel is spread across six deposits.
Nickel to form part of exploration strategy at the project area
Nickel is an essential component of battery for the electric vehicle and electric static storage markets.
Neometals has decided nickel will form part of its exploration and development strategy in the project area.
Acquisition expected to complete in 2-3 months
Completion of the acquisition remains conditional upon the receipt of any necessary ministerial consents to the transfer of the tenements together with any necessary consents.
Completion is anticipated to occur within 2 to 3 months.
Plans to build and operate a lithium hydroxide plant
Neometals aims to produce battery quality lithium hydroxide from Mt Marion spodumene in a bid to become an integrated lithium producer.
Although it is a minority equity holder (13.8%) in the Mt Marion mine it is able to be supplied under its off-take option agreement.
Neometals aims to build and operate a processing plant to produce 10,000 tonnes per annum of lithium hydroxide.
This would provide a secure, reliable supply to the electric vehicle and storage battery sector from 2021.