- Australian Mines (AUZ) begins an additional exploration program across its Sconi nickel-cobalt-scandium project in North Queensland
- The company will undertake soil and rock chip sampling, geochemical analysis and mapping across 14 targets that are being investigated for nickel and cobalt mineralisation
- Once received, the results will be used to plan the next phase of exploration at Sconi which will consist of reconnaissance drilling of the priority targets
- This exploration may result in an increased revision in Sconi’s mineral resource estimate and its lifespan
- Shares in AUZ are down 4.26 per cent on the market and are trading at 22.5 cents
Australian Mines (AUZ) has begun an additional exploration program across its Sconi nickel-cobalt-scandium project in North Queensland.
The company will undertake soil and rock chip sampling, XRF geochemical analysis and geological mapping across 14 targets that are being investigated for potential nickel and cobalt mineralisation.
Once received, the results will be used to plan the next phase of exploration at Sconi which will consist of reconnaissance drilling of the priority targets.
Infill and extensional drilling may follow to increase the confidence in the grade and volume.
This exploration may result in an increased revision in Sconi’s mineral resource estimate and its lifespan.
In mid-August, AUZ signed a binding offtake agreement with LG Energy Solution for mixed nickel-cobalt hydroxide from Sconi.
Under the agreement, LG Energy Solution agreed to purchase 71,000 dry metric tonnes of nickel and 7000 dry metric tonnes of cobalt in the form of a mixed hydroxide precipitate.
The agreement runs for an initial six years and may be extended for another five, and is equivalent to the production of batteries for 1.3 million electric vehicles.
The agreement is expected to take effect on July 1, 2024, and AUZ said it is working to finalise agreements with a range of financing partners.
Shares in AUZ were down 4.26 per cent on the market and were trading at 22.5 cents at 10:31 am AEST.