Golden Mile Resources intersects ‘spectacular’ nickel-cobalt, appoints new MD

While lithium is stealing the limelight with investors at present, the battle continues to find enough nickel and cobalt to underpin future electrification plans.

So the reports out of Golden Mile Resources (ASX: G88) this week take on special significance, the company releasing details of what it describes as “spectacular” grades of nickel and cobalt at its Quicksilver project near the town of Lake Grace in Western Australia.

The headline intercept returned 49m at 1.74% nickel and 0.071% cobalt from 30m down hole, including 28m at 2.34% nickel and 0.109% cobalt and that including small intervals up to 4.14% nickel and 0.421% cobalt.

This is the highest grade of both nickel and cobalt so far intersected at Quicksilver.

This development coincides with the company appointing a new managing director, mining engineer Damon Dormer.

Direct shipping potential

Other intersections included 0.61% nickel from 20m depth, 47m at 0.74% nickel and 29m at 0.65%, all three holes including higher grade intervals.

The company says the results show potential for direct transportation and shipping from higher-grade zones of the orebody without beneficiation.

Moreover, high-grade nickel and cobalt in the oxide zone might be an indication of potential disseminated nickel within the untested primary zone, said Golden Mile.

Mr Dormer said the potential for direct shipping of some ore could provide early cash flow while the company builds a beneficiation plant.

“These are spectacular intersections,” he added.

Near surface disseminated nickel sulphide accumulations can, the company notes, be an economic source of nickel provided there are sufficient tonnes and grades.

Role of turning around projects

Mr Dormer joined the company in March as chief executive officer, but the company has cut short his probationary period and confirmed him as managing director.

Chairman Grant Button said Mr Dormer has had considerable success turning around mining projects in Africa as well as operational success in Australia.

Mr Dormer has had more than 26 years in the mining sector, including 15 years at mine management level.

The Quicksilver project, which lies about 300km southeast of Perth, is located on privately owned farmland.