Nico Resources provides update on metallurgical testwork program

Nico Resources Limited (ASX: $NC1) has provided an update on its metallurgical testwork program for the Wingellina Nickel-Cobalt Project in Western Australia. The testwork aims to underpin a Definitive Feasibility Study (DFS) for the development of the world-class project, which hosts an initial reserve of 1.56 million tonnes of contained nickel capable of producing approximately 40,000t of nickel and 3,000t of cobalt in a Mixed Hydroxide Precipitate (MHP) for at least 42 years. The recent results confirm the technical viability of utilizing the High Pressure Acid Leach (HPAL) process to produce MHP from the Wingellina deposit, with low rates of acid consumption and excellent leaching kinetics.

Executive commentary on project advancement

We are pleased with these outstanding outcomes and their importance in continuing to advance Wingellina to be a development ready project. We know from the PFS that if Wingellina was developed and operational prior to the recent nickel price rout, the Project still would have generated robust free cash at the market lows. This is a great stress test for a project of this magnitude and scale. We continue to press forward in readiness for the next phase. We have to be patient, but we do so in the belief that Wingellina is world class in size and grade, has a long life in excess of 40 years and it remains one of very few major undeveloped oxide-type nickel-cobalt deposits in the world. These deposit types have now become the most dominant contributor of nickel supply to assist in the long-term global energy transition.

Summary of metallurgical testwork update and future outlook

Nico Resources has made significant progress in the metallurgical testwork program for the Wingellina Nickel-Cobalt Project, confirming the technical viability of utilizing the HPAL process to produce Mixed Hydroxide Precipitate from the deposit. The company's patience in the current market conditions reflects its confidence in the project's long-term potential, considering the recent recovery in nickel prices. The successful outcomes of the testwork program position the Wingellina project as a robust and dependable source of nickel and cobalt supply, contributing to the global energy transition. Nico Resources looks forward to the next phase of development, aiming to capitalize on the world-class size and grade of the Wingellina deposit, which is expected to have a long operational life of over 40 years.