Nickel – Regional Exploration

With the movement in the cobalt price in early 2017, Metals X undertook a review of the cobalt inventory of the deposit from which it defined high grade cobalt domains. Further studies identified 15 main high grade cobalt – nickel pits within the Wingellina deposit. Although the 15 pits identified total a significant quantity of nickel and cobalt (326,100 tonnes Ni and 25,800 tonne Co), collectively they contain less than 20% of the total contained nickel and cobalt in the Central Musgrave Project.

In October 2017 Metals X initiated further studies at Wingellina and conducted an infill drilling program within 6 of the identified high grade cobalt-nickel open pits. Optimisation of the high grade cobalt – nickel pits incorporating the latest drill results is now in progress for the purpose of targeting a potential high nickel-cobalt grade, lower capital start-up option for Wingellina. In addition, additional metallurgical testing has been conducted during 2018 for the production of cobalt sulphate and nickel sulphate as feedstock for the battery industry. Leaching of cobalt and nickel has been completed successfully. Previous variability testwork indicated that leach recoveries of over 94% for both nickel and cobalt are achievable with acid consumptions of approximately 300kg/t.