Ghan Well Cobalt-Nickel Deposit (100%)

Highlights

  • Maiden nickel and cobalt Inferred Mineral Resource of:
    • 1.3 million tonnes at 0.9% nickel and 0.07% cobalt above a cut-off grade of 0.8% nickel, containing 11,900 tonnes of nickel and 900 tonnes of cobalt.
  • Mineralisation is open along strike and at depth.
  • Significant cobalt mineralisation identified in existing drilling including:
    • 12m at 0.15% cobalt and 0.78% nickel
    • 11m at 0.15% cobalt and 0.99% nickel
    • 8m at 0.16% cobalt and 0.83% nickel
    • 6m at 0.21% cobalt and 0.78% nickel
    • 4m at 0.27% cobalt and 0.75% nickel
  • Prospective ultramafic sequence extends 12 kilometres as yet untested by drilling
  • Adjacent to Glencore’s Murrin-Murrin nickel-cobalt processing facility and operating haul roads.

Location map of the Ghan Well deposit, located 26 km southeast of Glencore’s Murrin-Murrin processing facility in Western Australia.

Project Overview

The Ghan Well cobalt and nickel project is located in the north-eastern goldfield of Western Australia approximately 70 kilometres from Laverton and 26 kilometres from Glencore’s Murrin-Murrin cobalt and nickel processing plant.

Ghan Well Inferred Mineral Resource April 2019 reported above a cut-off grade of 0.8% nickel

Resource category

Material type

Tonnes (Mt)

Grade

Contained metal

Ni (%)

Co (%)

Nickel (kt)

Cobalt (kt)

Inferred

Oxide

Transitional

0.5

0.8

0.9

0.9

0.09

0.05

4.2

7.7

0.4

0.4

Total

1.3

0.9

0.07

11.9

0.9

The main zone of mineralisation extends over 700 metres north-south and 850 metres east-west and occurs as clays (oxide) to saprolitic ultramafic overlying fresh ultramafic rock. The overall shape of the mineralisation is a flat-lying, undulating body, separated into two main zones in the south which coalesce into a single zone to the north. The mineralisation is of variable thickness ranging from 1-2 m to 40 m.

The deposit has only been shallowly drilled in most areas and the potential for nickel and cobalt mineralisation remains open along strike for 3 kilometres to the north and 6 kilometres to the south. Immediately south of the new Inferred Resource the ultramafic host rock becomes significantly wider (increasing in width from 750 metres to 1,650 metres) providing substantial scope to increase the resource with further drilling.

The Company is examining options for adding value to the project which may include preliminary metallurgical test-work to establish metal recoveries and rock characteristics prior to further drilling. The proximity to processing infrastructure provides the potential for multiple development options if an Indicated Mineral Resource is defined.

Ghan Well is the second nickel-cobalt Inferred Mineral Resource identified by White Cliff Minerals in the same region and adds to the recently announced Inferred Mineral Resource identified at Coronation Dam consisting of 5.6Mt at 1.0% nickel and 0.08% cobalt (above a cut-off grade of 0.8% nickel) (ASX announcement 25 March 2019). Both deposits are within trucking distance of existing processing infrastructure.