Nickel

Junior explorer boss wires more personal fortune to globally significant nickel deposits in central Oz

Thu 14 Apr 22, 3:11pm (AEST)
Nickel

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Key Points

  • Nico's Wingellina Project has one of the world's largest nickel resources
  • Only 25% of its tenement area has been drilled
  • The company is targeting a PFS refresh before the end of the September quarter

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.

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Image does not include $1.59m purchased on 13./04

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

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

Undeveloped upside

Only 25% of the contact zone has been drilled, according to Nico.

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Source: Nico Resources (April 2022)

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)

Upcoming catalysts

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.

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Source: Nico Resources (April 2022)
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Nico Resources price chart

 

Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University and was Vice President of the University Network for Investing and Trading (UNIT). He is an avid swing trader, and drawn to breakouts and technical set ups. Outside of writing and trading, Kerry is a huge UFC fan, loves poker and bouldering.

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