▪ Exploration Target of 350 to 700 million dmt at 0.9% to 1.1% nickel, in addition to the existing 187 million dmt Resource
The Exploration Target has been determined based on the 2024 drill program and geological mapping. The potential quantity and grade are conceptual in nature. There has been insufficient exploration to define a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource (in addition to the existing Resource)
▪ 48,646 metres (1,844 holes) drilled in 2024 across 1,600ha, bringing the total exploration to 95,630 metres (3,736 holes) across 2,500ha of a 4,700ha prospective mapped laterite area, with peak assay results of 7.41% nickel and 1.37% cobalt
▪ Mine development and main haul road construction has commenced
▪ Current market price for saprolite and limonite ore is US$45/wmt (1.6% saprolite) and US$20/wmt (1.2% limonite)
SAMPALA PROJECT OVERVIEW
Nickel Industries Limited (Nickel Industries or the Company) (ASX:NIC) announced the signing of binding acquisition agreements for the Sampala Project in September 2024. The Sampala Project consists of three highly prospective, advanced and contiguous nickel-cobalt projects covering 6,654 hectares (ha), with an initial JORC-compliant Mineral Resource of 187 million dry metric tonnes (dmt) at 1.2% nickel and 0.09% cobalt (containing 2.3 million tonnes of nickel and 0.2 million tonnes of cobalt) covering just 900ha.
The IUPs are located in close proximity (just 36.9km) to the Company’s existing rotary kiln electric furnace (RKEF) and high-pressure acid leach (HPAL) operations within the Indonesia Morowali Industrial Park (IMIP), and immediately north of Sulawesi Cahaya Minerals, which is 49% owned by the Company’s largest shareholder, Shanghai Decent, and has reported resources of 1,139 million dmt at 1.2% nickel for 13.9 million tonnes of contained nickel metal, making it one of the world’s largest known nickel resources.
Since September, the Company has executed an aggressive drilling program, with the results consistently returning long, high grade saprolite and limonite intercepts across the IUPs. Development of the Sampala Project will allow the Company to become self-sufficient in nickel ore supply for its IMIP downstream operations.
Commenting on the Sampala Project exploration update, Managing Director Justin Werner said:
“We are extremely pleased to provide an exploration and development update on the Sampala Project. The consistent, long, high-grade saprolite and limonite intercepts build on the existing JORC Resource of 187 million dmt at 1.2% nickel for 2.3 million tonnes of contained nickel metal, within just 900ha of a 4,700ha mapped prospective laterite area.
In 2024, we executed a successful drilling campaign, completing over 45,000m of drilling across an additional 1,600ha. This campaign returned exceptional grades of up to 7.41% nickel and 1.37% cobalt. With an identified Exploration Target ranging from 350 million dmt to 700 million dmt, at 0.9% to 1.1% nickel, in addition to the existing Resource of 187 million dmt at 1.2% nickel, the Sampala Project has the potential to become one of the largest nickel deposits globally. This positions Nickel Industries as one of world’s largest holders of contained nickel metal.
The commercial terms are extremely compelling – they allow for an 18-month period from signing of the agreements for the Resource to be defined and calculated, after which Nickel Industries will pay an acquisition price of US$2.50 for every dmt of 1.7% nickel (or above). Therefore, a significant portion of the contained metal in the deposit will effectively be acquired for “nil” consideration.
With current nickel ore prices of US$45/wmt for 1.6% saprolite and US$20/wmt for 1.2% limonite, coupled with our Hengjaya Mine reporting average margins of US$12/wmt throughout 2024, the Sampala Project has the potential to become a significant future EBITDA contributor, whilst at a low capital development cost of approximately US$50 million.
The completion of geotechnical drilling has enabled the finalisation of mine plans, with an initial target of 6 million wmt per annum, ramping up to 20 million wmt per annum. With the submission of our feasibility study and AMDAL (environmental application), we remain focused on bringing the Sampala Project into production as swiftly as possible. This will ensure a secure, long-term, high-quality ore supply for our processing operations at the IMIP.”
READ THE FULL ANNOUNCEMENT HERE
About us:
About Nickel Industries Limited
Nickel Industries Limited (NIC) is an ASX-listed company which owns a portfolio of mining and low-cost downstream nickel processing assets in Indonesia.
The Company has a long history in Indonesia, with controlling interests in the world-class Hengjaya Mine, as well as four rotary kiln electric furnace (RKEF) projects which produce nickel matte for the electric vehicle (EV) supply chain and nickel pig iron (NPI) for the stainless-steel industry.
Having established itself as a globally significant producer of NPI, the Company is now rapidly transitioning its production to focus on the EV battery supply chain – recently, the Company has acquired a 10% interest in the Huayue Nickel Cobalt (HNC) HPAL project, adding mixed hydroxide precipitate (MHP) to its product portfolio.
Nickel Industries is now embarking on its next transformative step, investing in Excelsior Nickel Cobalt (ENC), a next-generation HPAL project capable of producing MHP, nickel sulphate and nickel cathode. ENC is expected to produce approximately 72,000 tonnes of nickel metal per annum, diversifying the Company’s production and reducing the Company’s carbon emissions profile – reflecting the strong commitment to sustainable operations.
To learn more, please visit: www. nickelindustries.com
Contact details:
Nickel Industries Limited (ASX:NIC)
Justin Werner
Managing Director
[email protected]
+62 813 8191 2391
Cameron Peacock
Investor Relations and Business Development
[email protected]
+61 439 908 732
Investor Relations
The Capital Network
Julia Maguire
+61 2 7257 7338
[email protected]
