Pegging rush: Resolution nabs promising Alaskan nickel project as EV demand set to soar

RML granted Allegra nickel project in Alaska
Underexplored region has been compared to the Timmins nickel district in Canada
Nickel demand forecast to grow due to electric vehicle sector

Resolution Minerals bolsters its portfolio of new energy metals assets with the Allegra nickel project in Alaska.

The 295 km2 project wraps around Alaska Energy Metals’ Eureka Zone target — a low grade, high tonnage, strike extensive (>15km) nickel-copper-PGE sulphide prospect where a resource drilling program is ongoing.

Resolution Minerals (ASX:RML) is an early mover into the region, where a pegging rush is currently underway.

Highly prospective nickel district

EV makers are said to be desperately short on nickel in particular, with S&P Global predicting the battery sector to near 35% of total nickel demand by the end of the decade.

Resolution MD Chris McFadden said the project is an exciting addition to the portfolio.

“The demand for this important battery metal is forecast to continue to increase over the next decade and the recent activity in the region, including the current drilling programs by our neighbours and the rush to stake new ground, shows that RML has secured a good address in this emerging nickel district,” he said.

Other significant prospective nickel claim blocks in the region are held by Skolai Exploration, a domestic limited liability company linked to KoBold Metals, a company that utilises machine learning and artificial intelligence for mineral exploration.

Principal investors in KoBold include Breakthrough Energy Ventures, a climate and technology fund backed by Microsoft’s Bill Gates, Bloomberg founder Michael Bloomberg and Amazon’s Jeff Bezos.

The Allegra nickel project, Alaska. Pic: via RML.

Ongoing exploration planned

Most of the historical drill holes from Allegra appear to have been positioned too far north to intersect the interpreted mineralised trend however the company says it’s encouraging to note data for multiple historical rock chips exceed 0.1% nickel and 0.1% copper.

Surface sampling results are now pending for preliminary field campaign on Allegra and planning is underway for potential mapping, surface sampling and geophysics ahead of drilling

“The Resolution team has been working in Alaska for multiple field seasons and is well positioned to progress the project,” McFadden said.

RML team members have also reviewed several potential drill targets at the 64North project while in Alaska working on Allegra, with further updates on that project to come.

Drilling deep into Benmara for battery metals

Meanwhile, drilling at the RML-BHP (ASX:BHP) Benmara battery metals JV in the NT kicked off early August.

Two planned 1,000m diamond drill holes will push deep into the underexplored Benmara project, hunting for sediment-hosted base metals, including copper, lead, zinc, silver and cobalt.

As part of a farm-in deal, BHP has the option to spend up to $4m over five years for a 51% stake in the project. Further exploration at $1m/year until a final investment decision is made will lift that stake up to 75%.

This article was developed in collaboration with Resolution Minerals, 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.