A-Cap engages with JV partner’s administrators to progress Wilconi nickel-cobalt project
A-Cap Energy has moved to assure shareholders its plans remain intact around the Wilconi nickel-cobalt project after the administration of its JV partner Wiluna Mining Corporation.
A-Cap (ASX:ACB) owns 55% of the cobalt, nickel and associated mineral rights at Wilconi, which abuts WMC’s Wiluna gold mine.
With the voluntary appointment of FTI Consulting’s Michael Ryan, Kathryn Warwick, Daniel Woodhouse and Ian Francis as administrators to WMC’s assets, there was a potential question mark over the status of the JV.
That has been answered by A-Cap, which holds the right to acquire an additional 20% interest in Wilconi for $1m cash and $1.5m share in A-Cap following the completion of a DFS.
It says it is talking to administrators in regards to its JV rights, including the potential to acquire all of Wiluna’s remaining 45% interest.
Wilconi is a large lateritic nickel orebody located near Wiluna in WA’s mid-west, containing indicated and inferred resources of 90Mt at 0.73% nickel, 0.051% cobalt for 660,000t of nickel metal and 46,400t of cobalt.
A-Cap began a new 12,000m round of infill drilling in July to upgrade the Wilconi resource, with testwork also on the way as part of a major pre-feasibility study.
Also in ACB’s favour is its diversified strategy with Wilconi just one pillar of the company’s two pronged exploration approach.
It also holds the flagship Letlhakane uranium project in Botswana, currently regarded as one of the top 10 undeveloped uranium deposits.
Letlhakane contains a total JORC resource of 365.7Mlb of uranium oxide, including 822.1Mt of ore at 202ppm U3O8 with a 100ppm cut off.
A-Cap has stepped up efforts to assess and move forward with Letlhakane after prices for uranium surged over the past year, moving to decade-long highs of between US$50-60/lb.
It plans to commence diamond drilling in September or October this year to generate sufficient fresh sample material to complete additional sorting test work, utilising advances in sorting technology.
This article was developed in collaboration with A-Cap Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.