Nico Resources (ASX: $NC1) quarterly activities summary

Nico Resources Limited (ASX: $NC1) is pleased to present a summary of activities for the quarter ended 31 March 2024. The company reported a market capitalization of $19.71 million and an enterprise value of $13.89 million. With 109.20 million shares on issue, 43.10 million unlisted options, and 3.0 million performance shares, Nico Resources closed the quarter with $5.81 million in cash at bank. The company's flagship project, the Wingellina nickel-cobalt project in Western Australia, has shown significant progress during the quarter, particularly in the areas of High Pressure Acid Leach (HPAL) technology and neutralization processes.

Executive commentary on Wingellina project progress

The results received from the metallurgical testwork program during the quarter continue to confirm all previous metallurgical testwork and show that Wingellina ore has characteristics that are particularly well suited to processing by High Pressure Acid Leach (HPAL) which results in high metallurgical recoveries and low reagent usage. Ongoing bench-scale testing for HPAL has shown consistent nickel and cobalt extractions of around 95% or higher, surpassing expectations. Preliminary analysis suggests optimized leaching temperatures between 250°C to 260°C and acid usage of around 270kg/tonne of ore. Assessment of transitional ores has revealed opportunities to enhance metal recovery and provide additional neutralizing capacity. This testwork will provide additional metal units and neutralisation capacity which will have an additional positive impact on production and costs.

Summary of Wingellina project and outlook

Nico Resources Limited (ASX: $NC1) has made significant strides in advancing the Wingellina nickel-cobalt project, with positive results from the metallurgical testwork program. The company's focus on HPAL technology and neutralization processes has yielded promising outcomes, including consistent high nickel and cobalt extractions, optimized leaching temperatures, and opportunities to enhance metal recovery. The utilization of Lewis Calcrete as a neutralizing agent and the production of Quicklime from the Lewis calcrete deposit have also been confirmed as cost-effective alternatives, offering substantial operational benefits. Looking ahead, Nico Resources plans to continue the bench scale testwork, further exploration and associated work on the Lewis calcrete deposit, and the required works on the potential water supply from the Cobb Embayment. The company also aims to complete the updated mineral resource estimate and commence the geo-metallurgical model for the Wingellina orebody, while progressing engagement with government agencies and potential strategic partners to assist in the development and funding of the project.