Alchemy Resources Limited (ASX:ALY) has begun a strategic review of battery metals interests at its 80%-owned West Lynn nickel-cobalt and Summervale alumina assets in New South Wales, due to strong market economics.
The West Lynn project holds an inferred resource of 21.3 million tonnes at 0.84% nickel and 0.05% cobalt with an alumina resource of 6.5 million tonnes at 20.8% aluminium oxide, announced in a maiden resource estimate in 2019.
Some early metallurgical test-work was completed at that stage with positive results.
Given the climbing price of base metals and the demand for high purity alumina (HPA) products, Alchemy is now investigating the viability of developing West Lynn further.
The review is designed to focus on the following:
- Identifying additional treatment pathways for the alumina resource and the potential to obtain a high quality (4N) HPA product;
- Evaluating the exploration potential to build on the existing resource base; and
- Considering potential partners to help develop the project.
“Strategically timely to review”
“The review of the West Lynn Project is particularly exciting since nickel prices are at an 11-year high, and high purity alumina is a key component in lithium batteries,” Alchemy Resources CEO James Wilson said.
“Demand for these critical and battery metals has skyrocketed since we completed our initial resource and test-work in 2019. Since then, West Lynn was named as a critical minerals project by Austrade in 2020.
“Our advanced critical and battery metals projects comprise an important part of Alchemy’s exploration portfolio and we believe it is strategically timely to review the pathways to enhance the value in these assets.”
From here, Alchemy will work with Auralia Mining Consultants to complete a strategic review of its battery metals assets and will update the market on work programs to advance the assets as appropriate.
About Alchemy Resources
Alchemy Resources is an Australian exploration company focused on growth through the discovery and development of gold, base metal, and nickel-cobalt resources within Australia.
The company has built a notable land package in the Carosue Dam-Karonie greenstone belt in the Eastern Goldfields region in Western Australia and has an 80% interest in the Lachlan/Cobar Basin Projects in New South Wales.
Alchemy also maintains its interest in the Bryah Basin Project in the gold and base metal-rich Gascoyne region of Western Australia, where Superior Gold Inc and Sandfire Resources Limited are continuing to advance gold and base metal exploration, respectively.