Moho is doubling down on nickel near Silver Swan North
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Under the binding heads of agreement, the company will acquire the exclusive rights to all nickel, copper, cobalt and platinum group elements on 15 granted mining tenements held by Yandal Resources (ASX:YRL) in Western Australia near its Silver Swan North project in exchange for a 1% net smelter royalty.
It will also vend four of its mining tenements under option and a tenement application to Yandal whilst retaining the rights for nickel, plus a net smelter royalty on the application for gold.
“The agreement with Yandal presents a unique opportunity for Moho to significantly increase our exploration program for nickel sulphide mineralisation in highly prospective stratigraphy at Silver Swan North with minimal cost and time delay,” managing director Shane Sadleir said.
“The granting of the nickel rights further enhances the company’s focus on nickel exploration following the recent acquisition of the Whistlepipe nickel project, located in Western Australia’s southwestern Yilgarn Craton and Albany-Fraser Orogen.
“While gold remains a key commodity for the company, nickel continues to be subject to a number of supply constraints and our increasing focus on nickel affords Moho better leverage to future price movements.”
He added that recent announcements by Poseidon Nickel (ASX:POS) at Silver Swan and Golden Swan, Metal Hawk (ASX:MHK) at Berehaven and Estrella Resources (ASX:ESR) at Carr Boyd were encouraging as they demonstrated the potential for further nickel sulphide discoveries within the Kalgoorlie area.
The Yandal tenements adjoin the company’s Silver Swan North project and are located within 20km of Poseidon’s deposits and processing plant at Black Swan.
Geologically, the tenements cover an area of about 8.7sqkm of the significant folded mafic-ultramafic Highway Formation that is known to host nickel sulphide mineralisation including the nearby GSP and Ringlock deposits. However, historical exploration there for nickel has not been a priority for previous explorers.
Moho plans to reprocess and review the existing geophysical data, along with collating and interpreting all available geochemical and drillhole data.
This article was developed in collaboration with Moho Resources, 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.