The company identified the project’s lithium potential back in April after an independent geochemical review. Pic: via Getty Images.
Mining
NickelSearch is gearing up to commence mapping and sampling next month to assess the lithium potential at its Carlingup project in WA.
NickelSearch (ASX:NIS) re-rated in September after teaming up with lithium producer Allkem (ASX:AKE) to assess the lithium prospectivity of Carlingup, about 10km from the 140,000tpa Mt Cattlin lithium mine near Ravensthorpe, WA.
Notably, Allkem also recently flagged latent capacity at Mt Cattlin to potentially toll-treat third party product – which could bode well for NickelSearch if Carlingup’s lithium potential is confirmed.
Back in April, the lithium potential at Carlingup was identified via an independent geochemical review with four target areas identified within NIS tenure located on private land to the northwest and southwest of a quarry site.
The plan is now for Newexco geologists to undertake a mapping and sampling program of the four priority target areas, plus the immediate surrounds of the quarry, in conjunction with NIS field staff and Allkem geologists next month.
At the quarry, NickelSearch has confirmed high-grade lithium within spodumene-bearing pegmatites through the sampling and analysis of rocks within the quarry, including 5.19% Li2O, 4.99% Li2O, 1.27% Li2O, and 1.92% Li2O.
Notably, each of the target areas has an interpreted strike length of over 800m.
“We are keen to progress our lithium exploration across the targets identified at Carlingup. The next phase of exploration involves the experienced team from Newexco mapping and sampling the initial four priority target areas, plus the quarry area, to support drill planning,” MD Nicole Duncan said.
The company has obtained a new access permit from the WA Mining Warden to re-enter the quarry and these priority target areas.
The company’s accelerate exploration plans are backed by firm commitments earlier this month to raise $1.2m at $0.045 per share (a 17.4% discount to the 5-day VWAP).
Negotiations for consent and compensation to these areas will continue and require finalisation (as between the parties) before an exploration program that involves ground disturbance (i.e., drilling) can commence.
NIS is also in the process of agreeing next steps regarding access with the operator of the quarry, including the draining of the quarry pit, as original grab samples were taken from stockpiles of rock material extracted from the quarry and their original in-situ location within the pit (which is currently flooded) is not known.
In the meantime, regional lithium exploration continues with rock chip sampling, stream sediment sampling and additional soil sampling underway across the Carlingup tenements.
This article was developed in collaboration with NickelSearch, 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.
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