The company recently teamed up with lithium producer Allkem to assess the lithium prospectivity of the project. Pic: via Getty Images.
Mining
NickelSearch has reported assays over 5% lithium oxide (Li2O) at its flagship Carlingup nickel sulphide and lithium project in WA.
NickelSearch (ASX:NIS) re-rated last month 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.
NickelSearch collected grab samples from a quarry area on its tenements, where multiple instances of spodumene-bearing pegmatites were observed in surface stockpiles.
Assays included:
The results demonstrate the presence of a pegmatite system capable of developing lithium spodumene mineralisation, the scale and extents of which are yet to be determined.
“NickelSearch is excited to have confirmed spodumene in pegmatites in a number of stockpiles on our Carlingup Project, with one of the grab samples assaying at 5.19% Li2O,” NIS MD Nicole Duncan said.
“This is a great start to testing Carlingup for lithium potential, and a strong basis on which to take forward the technical collaboration with Allkem.”
The company has also received firm commitments to raise $1.2m at $0.045 per share (a 17.4% discount to the 5-day VWAP) to fund an accelerated lithium exploration strategy.
NickelSearch is in the process of agreeing next steps with the operator of the quarry, and with Allkem to negotiate for consent and compensation before a formal exploration program can commence.
In the meantime, the company has obtained a new 30-day access permit issued by a WA Mining Warden to re-enter the quarry, and further rock chip sampling and geological mapping is now underway, with stream sediment sampling and additional soil sampling to continue across the Carlingup tenements.
“There is a lot of work ahead. The Mt Cattlin geologists continue to share their technical expertise on greenfield lithium exploration in the Ravensthorpe area,” Duncan said.
“We have commenced discussions with the quarry operator on next steps and are aiming to be back at the quarry in the coming days to do further rock chip sampling.”
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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