NickelX targets Cosmos South project in nickel-rich Wiluna greenstone belt

NickelX Limited has signed an exclusive deal to acquire the Cosmos South Nickel Project, 10km from Western Areas’ (ASX:WSA) Cosmos Nickel Operations in the Wiluna greenstone belt in WA.

Following the agreement, NickelX (ASX:NKL) has agreed to pay a $25,000 exclusivity fee to vendor MG Resources in consideration for MG Resources exclusively dealing with NKL for a 3 month period and the parties negotiating a formal earn-in agreement.

Cosmos South is within the highly endowed nickel rich region of the Agnew Wiluna greenstone belt that hosts world-class deposits such as the Leinster Nickel Operations, Mt Keith, Yakabindie, Honeymoon Well, and Cosmos.

Ultramafic rocks which host nickel mineralisation to the north and south have been interpreted to strike through the Cosmos South project following a preliminary review of existing magnetics data.

A high priority electromagnetic conductivity anomaly target at CS1 has been identified through geological interpretation and geophysical data review, which is interpreted to be shallow with multiple, large conductors.

No previous systemic exploration drilling has been undertaken at the project due to the targets being obscured beneath cover associated with Lake Miranda – yet exploration and discoveries have been undertaken to the north and south of the project area.

Strategic landholding near key players

NickelX managing director Matt Gauci said the team has progressed the Fire Dragon nickel target in the Albany Fraser Orogen (AFO) through a diamond drilling program on top of having generated a pipeline of nickel opportunities.

“The Cosmos South Nickel project ranked highly on our target list and represents a very compelling nickel target demonstrated by geological interpretation, strong magnetics indicating ultramafic rocks and very strong and large bedrock conductors, which have not been the subject of systematic drilling.

“It is one of the very few independently owned project areas within the prolific Wiluna Greenstone Belt where Western Areas and BHP dominate landholdings.”

NKL will seek shareholder approval for the earn in terms under ASX listing rule 11.1.2 and further information will be set out in a notice of meeting, which will be lodged onto the company’s ASX platform shortly.

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.