Admitted to the ASX less than six months ago, Golden Mile Resources (ASX: G88) has discovered “extensive nickel-cobalt rich” mineralisation at its Quicksilver project in Western Australia.
Initial drill assays have returned more than 2% nickel and up to 0.20% cobalt, with better intercepts including 13m grading 2% nickel and 0.10% cobalt, 10m grading 1.09% nickel and 0.05% cobalt, and 7m grading 0.20% cobalt at 0.55% nickel.
The project is situated in the south west mineral field which hosts a number of renowned deposits, including: Boddington gold mine, Capel mineral sands operations, Greenbushes lithium-tin-tantalum, and Darling Scarp bauxite-alumina.
According to Golden Mile, the Quicksilver project is also prospective for scandium and includes 15km of prospective mineralisation.
The company undertook a reverse circulation drilling program in October and is anticipating results next week.
Golden Mile is actively exploring its tenement suite throughout Western Australia which is prospective for gold, cobalt, nickel and scandium.
Electric vehicle consumption to drive nickel market revival
On Friday, Small Caps reported an imminent nickel resurgence was on the cards due to the burgeoning electric vehicle, consumer electronics and green energy markets.
What has been largely ignored up until recently is the lithium-ion battery used to power these products contains a substantial portion of nickel.
In its high purity nickel concentrate form, the commodity comprises part of the lithium-ion’s cathode, traditionally along with cobalt.
Until recently, cobalt and nickel comprised equal portions of the cathode but due to cobalt’s surging price and potential supply bottle necks, many battery manufacturers have been using more nickel.
According to Roskill, lithium-ion manufacturers are now using eight times more nickel than cobalt and this trend is predicted to continue.
The lithium-ion battery market is projected to be worth US$77.4 billion by 2024 – powered by the electric vehicle industry.
In recent years, lithium and cobalt miners have enjoyed sky-rocketing stock prices.
Many analysts predict nickel will follow this trend as stockpiles on the London Metals Exchange drop off and consumption picks up.
Shares in Golden Mile had shot up more than 37% by mid-afternoon trade.