NickelX (ASX: NKL) has secured land access and mineral exploration agreements covering its Cosmos South nickel project, with drilling expected to get underway in the current quarter.
A heritage survey is due to be completed early next month, which, once finished, will pave the way for a 1,500m drilling program.
The program is designed to test near-surface and down dip extensions of priority anomalies.
In readiness for the drilling program, NickelX has collared a co-funded grant of up to $180,000 under the Western Australian Government’s Exploration Incentive Scheme.
NickelX is negotiating a contract with DDH1 Drilling, which is active in the Wiluna Greenstone Belt in WA, where Cosmos South is located.
Managing director Matt Gauci noted negotiations for the land access and mineral exploration agreements with the Tijwarl (Aboriginal Corporation) RNTBC had been “efficient” and “cordial”.
“We look forward to the heritage survey, which will evaluate the proposed drill hole sites recently field checked by the company.”
“Very limited preparatory work and vegetation clearance will be required prior to commencement of the Cosmos South drilling program,” Mr Gauci added.
Cosmos South nickel project
The Wiluna Greenstone Belt is a highly prospective nickel region and home to world-class deposits, including BHP’s (ASX: BHP) Leinster, Mt Keith, Yakabindie and Honeymoon Well mines and IGO’s (ASX: IGO) Cosmos operation, which it acquired earlier this year when it took over Western Areas.
Cosmos South is 10km south of IGO’s Cosmos operation and 20km north of BPH’s Leinster mine.
Despite being surrounded by major nickel miners, Cosmos South has undergone “very limited” exploration.
At Cosmos South, NickelX has processed data from a magnetic survey, which helped better define results previous moving loop electromagnetic and fixed loop magnetic surveys, which identified the CS1 and CS2 anomalies.
The upcoming drill program will comprise four diamond holes to test the extensions of the modelled conductive plates identified in CS1.
