Nico Resources’ (ASX: NC1) Managing Director Roderick Corps has quietly accumulated $8.5m of the company’s stock since early March, a massive vote of confidence for the junior nickel explorer.
Since Corps’ first purchase on 4 March, Nico shares have rallied more than 80%.
For the uninitiated, Nico is a spin-off of tin-producer Metals X (ASX: MLX). MLX has rallied more than 400% since 2021 and one of few ASX-listed tin names. So far, it looks like Nico has inherited MLX’s ability to deliver outsized shareholder returns.
On Thursday, Nico made its first market sensitive announcement since its debut on 19 January.
The announcement did not address anything specific, providing details about the Wingellina Nickel-Cobalt Project, exploration strategy and development timeline.
The Wingellina Project was described as one of the largest, undeveloped nickel resources/reserves globally, with a pathway to produce responsibly source, environmentally friendly, green metals to the market.
Wingellina current Resource contains 2m tonnes of contained nickel and 154,000 tonnes of contained cobalt.
To add some perspective, Western Areas (ASX: WSA) has nickel resources of 941,000 tonnes.
Reminder: Western Areas is a mature, low-cost nickel producer as opposed to Nico, a junior explorer
Only 25% of the contact zone has been drilled, according to Nico.
Additional exploration upside could be a narrative for Nico as it undergoes further works including:
Wingellina, Irrunytju: 10,000m of drilling in 2022
Claude Hills: 5,000m of drilling in 2022
Currently in resource definition phase
Scarface: Field reconnaissance mapping and sampling
Early stage exploration target
Beadell: Field reconnaissance mapping and sampling
Prospect demonstrates elevated platinum group elements (PGEs)
A Phase 1 Feasibility Study was completed in 2008, indicating a potential project mine life in excess of 30 years, producing between 30,000 and 39,000 tonnes per annum of nickel.
Nico will provide an updated feasibility study, including new resource estimates, infrastructure requirements and ore processing (known as high pressure acid leach (HPAL) processing) before the September quarter.
Finance Writer & Social Media
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