A-Cap firms up 55% stake in Wilconi as it targets nickel-cobalt development
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A-Cap now holds a 55% interest in the Wilconi nickel and cobalt joint venture after investing $5m in the project to fulfil Phase 2 of its second earn-in milestone.
The company had met all joint venture project and tenement expenditure during the earn-in period and had previously made a $500,000 phase 1 cash payment to JV partner Wiluna Mining.
It follows A-Cap Energy (ASX:ACB) upgrading the Wilconi resource to 660,000t of contained nickel and 46,400t of contained cobalt following a 11,000m reverse circulation infill drilling program in 2021.
Since then, the company has completed a 31-hole diamond drilling program over 1490m in January which returned positive nickel and cobalt intersections while advancing a Pre-Feasibility Study for the development of a nickel-cobalt laterite operation.
“The Wilconi Project is well positioned to answer the world’s growing call for nickel and cobalt, two critical minerals which are vital components for up to 90% of the batteries most commonly used for electric vehicles,” recently returned chief executive officer Dr Andrew Tunks said.
“Wilconi has a massive resource that has several key benefits; it is flat flying close to surface providing low-cost mining, it lies within a granted mining lease and is close to excellent infrastructure in Western Australia, one of the world’s premier mining jurisdictions.”
The Wilconi project near Wiluna, Western Australia, currently hosts a resource of 90Mt grading 0.73% nickel and 0.051% cobalt.
Of this, 29Mt at 0.7% nickel and 0.046% cobalt is classed as Indicated resources, which grants enough confidence for mine planning.
Pit optimisation studies have been completed over the resource area while Simulus Laboratories is conducting metallurgical testwork on fresh drill samples aimed at defining the most suitable ore processing methods.
A-Cap has also completed deep ground-penetrating radar surveys across the deposit to assist with confirming continuity of mineralisation between drill sections while airborne LiDAR and orthophoto imagery provide an accurate digital terrain model and imagery.
The company will kick off infill drilling in July to convert more resources to the Indicated and Measured categories. This is also expected to define Ore Reserves.
It also plans to define geochemical and physical characterisation of tailings, waste rock and soils across the deposit; conduct further hydrogeological studies including baseline water monitoring, groundwater modelling and flow dynamics; and progress geotechnical assessment and design of open cuts, waste landforms and tailings storage facilities.
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.