NickelSearch (ASX:NIS), a prominent player in the nickel sulphide exploration sector, has recently turned its attention to the lithium potential of its flagship Carlingup Nickel Sulphide Project. Located near Ravensthorpe in Western Australia, this project has garnered significant attention due to its proximity to Allkem’s Mt Cattlin lithium mine.
Background: The Carlingup Project
NickelSearch’s Carlingup project is strategically situated just 10km away from Allkem’s Mt Cattlin lithium mine. This mine produced an impressive 131kt of spodumene concentrate in FY23. Allkem’s recent annual Ore Resource and Reserve update, released on 1 August 2023, supports the mine life of Mt Cattlin extending to at least FY2028. Furthermore, Allkem has indicated the potential of latent capacity at Mt Cattlin to toll-treat third-party products.
In April 2023, NickelSearch unveiled the lithium potential at Carlingup. This revelation was based on an independent geochemical review that analysed ultra-fine soil sampling results from the Carlingup Trend. The review also considered soil sampling completed by previous owners. The primary focus was on the assay data for Lithium-Caesium-Tantalum (LCT) pegmatite potential.
Technical Collaboration with Allkem
NickelSearch and Allkem have embarked on a technical collaboration journey to explore the lithium prospectivity of Carlingup. This collaboration was initiated after Allkem’s review of existing NIS lithium datasets, which encompassed rock chip samples, soil sampling, and geophysical survey reviews.
Under the guidance of Allkem’s lithium geologists, NickelSearch is set to undertake additional rock chip sampling and stream sediment sampling. This will help refine high-priority lithium target areas. It’s worth noting that Allkem’s Mt Cattlin lithium operations have already produced 131kt of spodumene concentrate in FY2023. They have also announced a 4-5 year mine life extension via open-pit methods and are currently exploring underground mining options.
However, it’s crucial to understand that this collaboration is still in its technical phase. It hasn’t reached the level of a formal lithium joint venture, and there’s no assurance that it will lead to a formal agreement in the future.
NickelSearch’s Vision and Comments
Nicole Duncan, the Managing Director of NickelSearch, expressed her enthusiasm about the collaboration. She highlighted the similar geology between Mt Cattlin and Carlingup and the mutual benefits of assessing the lithium potential of their project. Duncan emphasised the spirit of partnership, where both companies can negotiate further steps based on their shared successes.
About NickelSearch
NickelSearch Limited is a dedicated nickel sulphide explorer with a primary focus on its flagship Carlingup Nickel Project in Western Australia. The project boasts an existing resource base totaling 155kt contained nickel. It’s strategically located in the same greenstone corridor as IGO’s Forrestania nickel mining complex and is adjacent to First Quantum Minerals’ Ravensthorpe Nickel Operation.
The collaboration between NickelSearch and Allkem marks a significant step in exploring the lithium potential of the Carlingup project. With the increasing demand for lithium in various industries, especially electric vehicles, such ventures are crucial for meeting global needs. Only time will tell how fruitful this collaboration will be, but the initial signs are promising.
