The Coronation Dam Cobalt-Nickel Project (100%)

Highlights

  • Maiden nickel and cobalt Inferred Mineral Resource of:
  • 5.7 million tonnes at 1.0% nickel and 0.08% cobalt above a cut-off grade of 0.8% nickel, containing 56,700 tonnes of nickel and 4,300 tonnes of cobalt.
  • Mineralisation is open along strike and at depth.
  • Significant cobalt mineralisation identified in existing drilling including:
    • 16 metres of 0.42% cobalt and 1% nickel from 20 metres including;
      • 8 metres at 0.51% nickel and 1.16% nickel and;
      • 4 metres at 0.67% cobalt and 1.29% nickel
    • 24 metres at 0.23% cobalt and 0.80% nickel from 20 metres
    • 28 metres at 0.13% cobalt and 0.74% nickel from 8 metres
    • 32 metres at 0.12% cobalt and 0.92% nickel from 4 metres

Project Overview

The Coronation Dam Cobalt Project is located 90km south of Glencore’s Murrin Murrin mining operation and 45km south of GME Resources’ proposed Mt Kilkenny nickel-cobalt processing facility in WA’s north-eastern goldfields (Figure 2). The nickel and cobalt Inferred Mineral Resource, reported above a cut-off grade of 0.8% nickel, consists of 5.7 million tonnes grading 1.0% nickel and 0.08% cobalt, containing 56,700 tonnes of nickel and 4,300 tonnes of cobalt.

The project is surrounded by world class mining infrastructure and multiple operating mines. Glencore is currently mining cobalt and nickel from the Murrin East open pit which contained an initial resource of 66 million tonnes at 1.1% nickel and 0.09% Cobalt.

The Coronation Dam project area covers 16km2 and contains an outcropping ultramafic unit that is approximately 1 kilometre wide and 5.7 kilometres long within the tenement.

Cobalt-nickel mineralisation occurs as a shallow layer of cobalt-enriched manganiferous oxides that form between the smectite clays and the overlying ferruginous clays. High grade cobalt mineralisation typically occurs between the surface and 50 metres depth and is associated with nickel mineralisation.

Cobalt mineralisation occurs in several places, starts at surface and extends up to a depth of 50 metres. The mineralisation has developed in the regolith profile above an intensely weathered ultramafic unit which was originally a peridotite.

The main zone of mineralisation extends over 1.4 km north-south and 750 metres east-west.  The vertical thickness of mineralisation ranges from several metres to a maximum of 70 metres.  Mineralisation starts at surface and dips shallowly to the west.  The bulk of the higher-grade mineralisation is concentrated within the centre of the deposit (see figures 2 to 6 showing depth slices of the nickel mineralisation).  The deposit has only been shallowly drilled in most areas and remains open along strike and at depth.

The Company will conduct preliminary metallurgical test work on the existing drill samples including beneficiation and leaching prior to considering additional drilling.  Provided the test work is positive the Company will consider a small drilling programme aimed at converting the Inferred Mineral Resources to Indicated Mineral Resources.  This drilling would target the shallow, higher-grade central area of the deposit and investigate the potential for open pit mining.

Location map of drilling and cobalt mineralisation at Coronation Dam located 90 km southeast of Glencore’s Murrin-Murrin processing facility in Western Australia. Coloured dots represent maximum down hole nickel (left) and cobalt (right) grades from historical drilling. WCN drillholes are not coloured by grade.