NickelX picks-up Dalwallinu nickel-copper-PGE project in WA’s West Yilgarn
NickelX will undertake a comprehensive review of all available data for the project, and plan its exploration strategy.
NickelX (ASX: NKL) has picked up the Dalwallinu project in Western Australia’s West Yilgarn province, which is believed highly prospective for Julimar-style nickel-copper-platinum group element mineralisation.
The company announced today it had executed a sale agreement and joint venture to acquire the 86 square kilometre project in an “underexplored region”.
Dalwallinu covers the Barra Barra Greenstone Belt and is accessible via private farmland.
A review of historical geochemical data at the project has identified what NickelX says is highly anomalous nickel-copper-PGE mineralisation at surface along 6km of strike.
NickelX has firmed up 12 high priority targets along the 6km of strike.
Previous exploration at Dalwallinu had focused on gold and iron ore.
NickelX managing director Matt Gauci said Dalwallinu presented an “exciting opportunity” for the company.
“The company is diligently working through the available datasets to establish a work program.”
Mr Gauci said the acquisition of Dalwallinu complemented the company’s Cosmos South project, where drilling is about to begin.
“The company is excited by the build of our nickel portfolio.”
Acquisition terms and next steps
Under the acquisition terms, NickelX will pay the private vendors a $50,000 first instalment cash consideration and issue 4 million fully paid shares.
A second $50,000 instalment is due to be paid to the vendors on or before 27 December.
Further instalments amounting $200,000 are to be paid between March and December next year.
In advancing Dalwallinu, NickelX will complete a more detailed review of historical geochemical and geophysical work at the project.
This will feed into planning for the next stage work programs with the goal of discovering nickel-copper-PGE mineralisation at the project.
In its recent annual report for the year ended June 2022, NickelX chairperson Jonathan Downes said the company was focused on nickel discoveries.
“Our nickel focused thesis is more compelling than ever with the growing public awareness of the essential role in global electrification played by nickel.”
“This is being supported with global stockpiles falling to 14% of their level five years ago and the price rising by ‘only’ double over this period,” Mr Downes added.