GME targets near-term production for lithium ion battery market
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ASX-listed junior GME Resources says it’s on track to produce battery-grade nickel and cobalt sulphates for the lithium ion battery market in the current quarter.
The Fremantle-based company (ASX:GME) has successfully wrapped up first stage of a pilot program and is targeting production of nickel and cobalt sulphates from pilot-scale test work in the September quarter to supply the growing lithium ion battery market.
“The successful production of these products will facilitate discussions with potential consumers and offtake partners,” the company said.
Despite the news, GME’s shares were trading 6 per cent lower at 7.5c in early afternoon trade, valuing the company at around $32 million.
Last month, GME began a Pre-Feasibility Study (PFS) into its NiWest project. The PFS is expected to be completed by March 2018.
NiWest hosts one of the largest undeveloped nickel and cobalt resources in Australia, with a mineral resource estimate of 81 million tonnes averaging 1.03 per cent nickel and 0.06 per cent cobalt. More than 75 per cent of the mineral resource is contained in the measured and indicated categories.
Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured.
The PFS will focus on the Mt Kilkenny and Hepi project areas, with the proposed processing plant located at Mt Kilkenny.
Mt Kilkenny represents the largest advanced nickel-cobalt resource within the NiWest Project while Hepi project area, located approximately 20 kilometres to the north of Mt Kilkenny, possesses the highest grade resource inventory.
Both the Mt Kilkenny and Hepi project areas are considered to be at an advanced stage in terms of potential for accelerated development.