NickelSearch Ltd (ASX:NIS) started trading on the ASX on Monday after raising A$10 million through an initial public offer (IPO), with institutional and mining investors across Australia and overseas joining the company's share register.
The company’s flagship asset is the highly prospective Carlingup Nickel Project with an existing, shallow resource base totalling 171,000 tonnes of contained nickel.
NickelSearch controls a 108 square kilometres dominant land position in the Ravensthorpe greenstone nickel belt and is strategically located adjacent to First Quantum Minerals (TSX:FQM)’ Ravensthorpe Nickel Operation and ~100 kilometres to the south of Western Areas’ Forrestania nickel mining and processing operations.
Highly prospective geological setting for nickel sulphides.
Within the tenement package are multiple nickel sulphide deposits (RAV1, RAV4, RAV4W, RAV5 and RAV8) with significant exploration potential to extend resources along strike and at depth.
The RAV8 deposit is the most advanced within the portfolio and has historically produced 16,100 tonnes nickel at 3.45%.
RAV8 is a classic Komatiite-hosted nickel sulphide deposit with two main massive sulphide shoots, with an overlying large disseminated nickel halo.
The mineralised halo has an inferred resource of 13.2 million tonnes at 0.60% nickel for 75,100 tonnes nickel.
Copper and cobalt credits are likely to be included in future resource calculations.
Dominant tenure position in the fertile Ravensthorpe Greenstone Belt.
NickelSearch will commence an initial 4,000 metres reverse circulation (RC) drilling program this week at Carlingup, where the highest priority is the RAV8 deposit.
Managing director Craig Moulton said: "We are delighted to commence trading on the Australian Securities Exchange and welcome our shareholders who participated in the IPO."
“We believe our flagship Carlingup Nickel Project has immense exploration potential and we are excited to be launching our maiden drill program to test what has been previously confirmed to be a very high grade, Kambalda-style nickel sulphide system," he said.
“We look forward to growing shareholder value and exploring the full potential of the Carlingup Nickel Project.”
Indicative timetable.
John Ellis Deposit
NickelSearch is the 100% beneficial owner of the John Ellis Deposit, which is a laterite nickel project and has a historical JORC (2004) total inferred mineral resource of 16.0 million tonnes at 0.56% nickel for 90,300 tonnes of nickel.
This deposit is contiguous with First Quantum Mineral’s (FQM) Nindilbillup deposit and has a significant infrastructure advantage due to its location adjacent to FQM’s Ravensthorpe Nickel Operation (RNO) and nickel laterite resources.
Ravensthorpe laterite nickel royalty
FQM holds the rights to any lateritic nickel on a number of tenements owned by third parties, including NickelSearch, in the Ravensthorpe region.
Should any lateritic nickel be mined on these tenements then a royalty is payable to NickelSearch.
FQM’s lateritic nickel resource that has been identified and published to date in the area is 25.3 million tonnes at 0.53% nickel on M74/85.
This resource is the southern portion of the John Ellis deposit, known as the Nindilbillup deposit by FQM.
NickelSearch will receive royalty payments when FQM mines the Nindilbillup deposit.
Nickel laterite production optionality.
Bio-leaching
NickelSearch also intends to utilise a conventional and green processing route known as bio-leaching to produce an intermediate mixed hydroxide precipitate (MHP) for sale.
Bio-leaching is a simple and effective technology for metal extraction from low-grade ores.
In the bio-leaching process, bacteria convert insoluble metal sulphides into soluble metal sulphates.
Bio-leaching is a low cost, environmentally safe and efficient process to produce valuable, saleable products.
Nickel demand for EVs
One of the key end uses for nickel is in the production of lithium-ion batteries for those battery cathodes that contain nickel.
Demand from this sector is increasing rapidly as the world transitions to a lower carbon future with electric vehicles being a significant component of this thematic.
NickelSearch will play a role in this transition by:
- Producing nickel which is the key raw material for battery cathodes that contain nickel;
- Utilising the low environmental footprint bioleaching to process ores into saleable products;
- Leveraging the relationship with Alpha Fine Chemicals Limited (AFC). AFC has a right of first refusal to purchase product produced by NickelSearch from the Carlingup Project. AFC is currently raising capital to build a refinery in Thailand to process intermediate nickel products into high purity nickel sulphate for the battery market.