Moho Resources Ltd (ASX:MOH) has entered into an agreement with Yandal Resources Ltd (ASX:YRL) to acquire a strategic nickel interest in 15 mining tenements in Western Australia.
Under the agreement, in exchange for a 1% net smelter royalty (NSR), Moho will acquire from Yandal the exclusive right to access, explore for, own, mine, recover, process and sell all nickel, copper, cobalt and platinum group elements (PGEs) extracted from 15 granted mining tenements held by Yandal.
Moho will also vend four mining tenements under option and a tenement application to Yandal while retaining the rights for nickel and NSR gold royalties.
In total, Moho will have a strategic nickel interest in 20 mining tenements after completing the deal with Yandal.
Location of tenements subject to heads of agreement with Yandal in relation to regional ultramafic stratigraphy prospective for nickel mineralisation and current Moho nickel exploration targets at Silver Swan North Project.
Moho managing director Shane Sadleir said: “The agreement with Yandal presents a unique opportunity for Moho to significantly increase our exploration program for nickel sulphide mineralisation in highly prospective stratigraphy at Silver Swan North with minimal cost and time delay.
“The granting of the nickel rights further enhances the Company’s focus on nickel exploration following the recent acquisition of the Whistlepipe nickel project, located in Western Australia’s Albany Fraser Orogen.
“While gold remains a key commodity for the Company, nickel continues to be subject to a number of supply constraints and our increasing focus on nickel affords Moho better leverage to future price movements.
“We are encouraged by the recent announcements by Poseidon Nickel at Siler Swan and Golden Swan, Metal Hawk at Berehaven and Estrella Resources at Carr Boyd, all demonstrating the potential for further nickel sulphide discoveries within the Kalgoorlie area.
“We look forward to reviewing the historical information on the Yandal tenements before commencing exploration early next year.”
Potential for ultramafic-hosted nickel sulphide mineralisation
The Yandal tenements, which adjoin Moho’s Silver Swan North Project and are within 20 kilometres of Poseidon Nickel’s deposits and processing plant at Black Swan, are believed to be prospective for ultramafic-hosted nickel sulphide mineralisation.
Geologically, the tenements cover the significant folded mafic-ultramafic Highway Formation that covers an area of about 8.7 square kilometres within the tenement package.
This mafic-ultramafic complex is host to known nickel mineralisation at the GSP and Ringlock deposits.
However, historical exploration there for nickel has not been a priority for previous explorers.
Moho plans to reprocess and review the existing geophysical data, along with the collation and detailed interpretation of all available geochemical and drillhole data.
Any priority targets generated will be tested as part of the Moho Resources’ strategic renewed interest in battery metals.