NickelX moves to acquire Cosmos South in WA’s Leinster Nickel Belt
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The Cosmos South Nickel project represents one of the very few independently owned project areas within the WGB, where BHP and Western Areas dominate landholdings.
NickelX has signed a binding terms sheet with MG Resources to nab the Cosmos South Nickel Project, 10km south of the high-grade Cosmos Nickel operations and 20km north of the Leinster Nickel operations within the Wiluna Greenstone Belt (WGB) in Western Australia.
Ultramafic rocks hosting nickel mineralisation to the north and south, interpreted to strike through the Cosmos South Nickel project, have been identified from a preliminary review of existing magnetics data.
The company said Cosmos has not received systematic exploration drilling due to the targets being obscured beneath cover associated with Lake Miranda, but significant exploration and discoveries have been undertaken directly north and south of the project areas.
NickelX (ASX:NKL) says the project represents one of the very few independently owned project areas within the WGB, where BHP and Western Areas dominate landholdings.
Managing director Matt Gauci said the NickelX team has quickly progressed the Fire Dragon Nickel target in the Albany Fraser Orogen through a systematic exploration program and has generated a pipeline of nickel opportunities.
“The Cosmos South Nickel project ranked highly on our target list and following our due diligence, the team believes the project represents a very compelling nickel target demonstrated by geological interpretation, strong magnetics indicating ultramafic rocks and very strong and large bedrock conductors.”
He said the acquisition will position the company as one of the very few companies with project areas within the prolific Wiluna Greenstone Belt outside of Western Areas and BHP Nickel West.
A high priority electromagnetic conductivity anomaly target at CS1 has been identified, via geological interpretation and geophysical data review including Moving Loop Electromagnetic (MLEM) and Fixed Loop Electromagnetic (FLEM) surveys.
The CS1 target in MLEM data is interpreted to be shallow (depth to top ~60m), multiple large conductors.
The CS1 target in FLEM data is interpreted to be a shallow, large bedrock conductor with a strike length of 565m and depth extent of 850m.
MG Resources has agreed to grant NickelX the exclusive option to purchase the Cosmos South Nickel Project (option) and subject to shareholder approval, the option is exercisable by the company at any time from the date of the terms sheet until six months from the date of the terms sheet.
NickelX will earn a 100% interest in the project by undertaking exploration expenditure of not less than $500,000 over a 24-month period.
The company is also set to make milestone payments of $150,000 in NKL shares 12 months from the date of the terms sheet and $150,000 in NKL shares 24 months from the date of the terms sheet.
These shares will be calculated based on a five-day volume weighted average price of NKL’s shares immediately prior to the relevant milestone date.
This article was developed in collaboration with NickelX, 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.