Nickel Mines Limited has issued an update on the Siduarsi Nickel-Cobalt project in Indonesia.
Nickel Mines reported that the results for 23,084 samples have been received to date, with another 7,409 samples awaiting assay and 2,889 samples in transit to the laboratory.
According to the company, results have returned peak assay results of 3.69 per cent nickel, 0.82 per cent cobalt, 21.72 per cent chromium oxide, 39.58 per cent aluminium oxide, 81.38 per cent iron oxide and 191 parts per million (ppm) scandium, with the overall average scandium grade in Limonite returning 48 ppm.
Since the execution of a binding memorandum of agreement signed in September 2021, the company has completed 167,178 km of ground penetrating radar and 31,127 m of drilling, covering a prospective area of 1,400 hectares.
In addition to the exploration program, additional work, including ore grade and mineralogical domain modelling, mapping for metallurgical test work programs, regional environment baseline studies, and potential haul road design options was been undertaken.
Nickel Mines noted that following the completion of the successful phase 1 drill program, the project will be placed into voluntary suspension to allow a Joint Ore Resource Committee (JORC) resource estimate, feasibility study and environmental impact study to be completed.
The study will focus on the economics of initial direct shipping of ore operations that could provide quality saprolite and limonite by barge to either the Indonesia Morowali Industrial Park, where the company’s Hengjaya, Ranger and Oracle nickel Rotary Kiln Electric Furnace (RKEF) operations are located, or the Indonesia Weda Bay Industrial Park, where the company’s Angel nickel RKEF operations are located.
“We are very pleased to announce the initial drilling results from the Siduarsi CoW which has returned peak grades of 3.68% nickel and 0.82% cobalt confirming our belief that the Siduarsi CoW has the potential to host a world-class limonite deposit that could provide quality feed for a High Pressure Acid Leach (HPAL) plant, pleasingly the drilling has also highlighted that the deposit also hosts high-grade pods of saprolite which will further boost the contained nickel content of the deposit and open up the opportunity for a low capex DSO operation to generate early cashflows from the project,” Nickel Mines Managing Director Justin Werner said.
Wener stated that the company is looking forward to reporting an initial JORC resource for Siduarsi, which hosts potential economic minerals such as chrome and scandium.
“The drilling has also highlighted that the deposit also hosts high-grade pods of saprolite which will further boost the contained nickel content of the deposit,” Werner added.
