GME Resources (ASX:GMR) - Non Executive Chairman, Peter Sullivan
Non Executive Chairman, Peter Sullivan
Source: GME Resources
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  • GME Resources (GME) has begun a program of work to update the pre-feasibility study (PFS) for its NiWest nickel-cobalt project in Western Australia
  • NiWest hosts one of the highest-grade undeveloped nickel laterite mineral resources, estimated to contain 85 million tonnes
  • The PFS outlined a 20-plus year, technically robust project with significant leverage to nickel price growth
  • GME has now formally re-engaged with the original PFS study team to complete an update of the estimates
  • The updated PFS will also include an update to cost estimates and potential project scope enhancements
  • GME Resources shares were down 3.57 per cent, trading at 13.5 cents

GME Resources Limited (GME) has begun a program of work to update the pre-feasibility study (PFS) for its 100 per cent-owned NiWest nickel-cobalt project in Western Australia.

NiWest hosts one of Australia’s highest-grade undeveloped nickel laterite mineral resources, estimated to contain 85 million tonnes, averaging 1.03 per cent nickel and 0.065 per cent cobalt.

Over 75 per cent of the resource falls within the measured and indicated JORC categories, and there is significant potential to expand the current mineralisation with further drilling.

The average annual production in the first 15 years of the project was 19.2ktpa nickel and 1.4ktpa cobalt at an all-in sustaining cost of US$3.48/lb of nickel.

Development studies are well advanced for a heap leach process producing battery-grade nickel sulphate, and include the 2018 completion of an ore reserve and extensive PFS, supported by a technically viable and pilot tested metallurgical flowsheet.

The PFS outlined a 20-plus year technically robust project with significant leverage to nickel price growth.

Challenges with financing a new nickel laterite operation in the then prevailing environment did not warrant significant further investment, however recent strength in nickel and cobalt prices and increased inbound interest from battery metal consumers now justifies further advancement of the project.

GME has now formally re-engaged with the original PFS study team to complete an update of the PFS estimates to quantify the impact of the significantly higher nickel and cobalt prices on the PFS financial outcomes.

The updated PFS will also include revised cost estimates and potential project scope enhancements which GME has been investigating since the original PFS was completed.

Completion of the updated PFS is expected to occur in the June quarter 2022 and the work program will be funded from the company’s existing cash reserves.

GME Managing Director Jamie Sullivan said: “NiWest’s relatively low capital intensity for a nickel laterite project and high leverage to nickel and cobalt price movements positions the project ideally for the current environment.”

“Completion of an updated PFS will provide a strong platform to demonstrate the enhanced project economics and facilitate further engagement with potential investors and project partners,” he said.

GME Resources is an exploration and development company with nickel, cobalt and gold interests in Western Australia. Its principal asset is the 100 per cent owned NiWest which sits adjacent to Glencore’s Murrin Murrin operations.

Company shares were down 3.57 per cent, trading at 13.5 cents at 10:57am AEST.

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