Neometals Ltd: 132N Nickel Mineral Resource and Exploration Update at Mt Edwards
HIGHLIGHTS
- 132N deposit Mineral Resource doubles in Nickel tonnes, with the estimate now 460,000 tonnes at 2.0% nickel for 9,050 tonnes of contained nickel
- The 132N Mineral Resource is located between 80 and 350 metres below and north of a previous open pit mined by Western Mining Corporation
- Global Mineral Resources at the Mt Edwards project increased to 8.72 million tonnes at 1.7% nickel for 146,000 tonnes of contained nickel across 11 deposits
- Exploration continues at Lake Eaton South prospect with diamond and RC drilling
October 5, 2020 – Neometals Ltd (ASX: NMT) (“Neometals” or “the Company”) is pleased to announce an updated nickel sulphide Mineral Resource at its 132N deposit (“132N”), estimated in accordance with the 2012 JORC Code. 132N forms part of the Mt Edwards Project located in a province of historic nickel sulphide mines. Using historical and new assay data the reinterpreted Mineral Resource estimate at 132N has more than doubled the amount of contained nickel from 4,070 to 9,050 tonnes.
Table 1 – 132N Indicated and Inferred Mineral Resource Estimate at various nickel grade cut-offs
Mineral Resource Classification |
Cut-off Ni% |
Tonnes |
Ni % |
Ni tonnes |
|
|
|
|
|
Indicated |
1 |
34,000 |
2.9 |
1,010 |
|
1.5 |
26,000 |
3.5 |
910 |
|
2 |
19,000 |
4.2 |
780 |
|
|
|
|
|
Inferred |
1 |
426,000 |
1.9 |
8,030 |
|
1.5 |
349,000 |
2.0 |
7,020 |
|
2 |
132,000 |
2.4 |
3,190 |
|
|
|
|
|
TOTAL |
1 |
460,000 |
2.0 |
9,050 |
|
1.5 |
376,000 |
2.1 |
7,940 |
|
2 |
151,000 |
2.6 |
3,970 |
A diamond core drillhole and daughter wedge was undertaken at 132N in June 2018 to test for strike extensions of the historical Mineral Resource. Drilling generated a significant intercept of 15.6 metres at 1.24% nickel and has improved the understanding of the interpreted geology.
The re-estimation of the 132N Mineral Resource follows a major review of the Mt Edwards project since mid-2019, which has included an audit of the drill database and the historical exploration and mining literature.
The scope to further grow Mt Edwards has driven consideration of a future work program that will include reverse circulation (“RC”) and diamond core drilling to further test the mineralisation, including infill drilling to increase confidence sufficient to ‘upgrade’ the Mineral Resource classification. Future drilling and sampling will be used to further improve the understanding of the mineralogy and metallurgical characteristics to pave the way for advanced mining studies at 132N.
In addition, Neometals has recently completed targeted geophysical surveys and drill programs at its Lake Eaton South prospect and future work will be driven by further assay outcomes. Neometals continues to build a pipeline of short lead time deposits to realise value at Mt Edwards.
Background
Neometals acquired the Mt Edwards project in the first half of 2018 and immediately began exploring for nickel and lithium. Neometals is targeting new discoveries at Mt Edwards while reviewing and enhancing existing Mineral Resources. The company holds mining tenements with a large land holding of more than 300km2 across the Widgiemooltha Dome, a well-recognised nickel sulphide mining province.
Updating of the Mineral Resource estimate at the 132N deposit has expanded the global Mt Edwards Project Mineral Resources to 8.72 million tonnes at 1.7% nickel for 146,000 tonnes of contained nickel across 11 deposits.
|
Table 2 – A revised 132N brings Mt Edwards Project Nickel Mineral Resources total nickel tonnes to 146,000
|
Mineral Resources quoted using a 1% Ni block cut-off grade, except Munda at 1.5% Ni. Small discrepancies may occur due to rounding
Note 1. refer announcement on the ASX: NMT 19 April 2018 titled Mt Edwards JORC Code Mineral Resource 48,200 Nickel Tonnes
Note 2. refer announcement on the ASX: NMT 25 June 2018 titled Mt Edwards Project Mineral Resource Over 120,000 Nickel Tonnes
Note 3. refer announcement on the ASX: NMT 13 November 2019 titled Additional Nickel Mineral Resource at Mt Edwards
Note 4. refer announcement on the ASX: NMT 16 April 2020 titled 60% Increase in Armstrong Mineral Resource
Note 5. refer announcement on the ASX: NMT 26 May 2020 titled Increase in Mt Edwards Nickel Mineral Resource
Table 3 – 132N Nickel Mineral Resources Table for Nickel and other elements at various nickel grade cut-offs
Ni cut-off grade % |
Tonnes |
Ni% |
Fe2O3% |
Cu ppm |
MgO % |
As ppm |
Co ppm |
S % |
Nickel tonnes |
1% Nickel cut-off |
460,000 |
2.0 |
16.3 |
1,460 |
13.3 |
270 |
240 |
2.38 |
9,050 |
1.5% Nickel cut-off |
376,000 |
2.1 |
16.2 |
1,560 |
13.4 |
280 |
250 |
2.44 |
7,940 |
2% Nickel cut-off |
151,000 |
2.6 |
16.2 |
1,860 |
13.7 |
280 |
260 |
2.94 |
3,970 |
Location
The 132N nickel deposit is located on mining lease M15/101, approximately 6km north-east of the Widgiemooltha Roadhouse. Access from the Coolgardie to Esperance Highway is via well-established roads used for previous mining in the area. The 132N Mineral Resource is beneath an open pit, previously mined for Nickel in 1988 & 2008, and is located central to a line of 11 Nickel deposits at the Mt Edwards Project.
Neometals hold Mining Lease M15/101 along with a significant portion of the nickel prospective tenements around the Widgiemooltha Dome, located 50 kilometres from Kambalda.
Figure 1 - Mt Edwards Project tenure over geology, with the 132N Mining Lease M15/101 location, shown with other Mineral Resources and the Lake Eaton South prospect. Neometals hold 100% nickel rights for all live tenements shown above.
Link to the full report: https://www.asx.com.au/asxpdf/20201006/pdf/44ncsmf3k9wgvr.pdf
ENDS
For further information, please contact:
Chris Reed
Managing Director
Neometals Ltd
T: +61 8 9322 1182
Jeremy Mcmanus
General Manager - Commercial and IR
Neometals Ltd
T: +61 8 9322 1182
About Neometals Ltd
Neometals innovatively develops opportunities in minerals and advanced materials essential for a sustainable future. With a focus on the energy storage megatrend, the strategy focuses on de-risking and developing long life projects with strong partners and integrating down the value chain to increase margins and return value to shareholders.
Neometals has four core projects with large partners that span the battery value chain:
Recycling and Resource Recovery:
- Lithium-ion Battery Recycling – a proprietary process for recovering cobalt and other valuable materials from spent and scrap lithium batteries. Pilot plant testing completed with plans well advanced to conduct demonstration scale trials with 50:50 JV partner SMS group, working towards a development decision in early 2022; and
- Vanadium Recovery – a 27-month option to evaluate establishing a 50:50 joint venture to recover vanadium from processing by-products (“Slag”) from leading Scandinavian steel maker SSAB. Underpinned by a 10-year Slag supply agreement, a decision to develop sustainable European production of high-purity vanadium pentoxide is targeted for December 2022.
Downstream Advanced Materials:
- Lithium Refinery Project – evaluating the development of India’s first lithium refinery to supply the battery cathode industry with potential 50:50 JV partner Manikaran Power, underpinned by a binding life-of-mine annual offtake option for 57,000 tonnes per annum of Mt Marion 6% spodumene concentrate, working towards a development decision in 2022.
Upstream Industrial Minerals:
- Barrambie Titanium and Vanadium Project - one of the world's highest-grade hard-rock titanium-vanadium deposits, working towards a development decision in mid-2021 with potential 50:50 JV partner IMUMR.
