Metals X Limited ("the Company" or "Metals X") has received a number of enquiries, and noted several media comments, in regards to the cobalt inventory of the Company. In response to this interest, Metals X provides the following summary.
The current surge in cobalt price and apparent fundamental shift in cobalt demand from the battery industry is bringing the potential of the world-class Wingellina deposit back into focus as either a stand-alone cobalt project or a more typical nickel project with strong co-product revenue.
Metals X's wholly owned Wingellina project, also known as the Central Musgrave Project, remains as one of the largest undeveloped nickel-cobalt-scandium deposits in the world. Wingellina has a Mineral Resource containing over 1.9 million tonnes of nickel and 154,000 tonnes of cobalt and an Ore Reserve containing approximately 1.56 million tonnes of nickel and 122,000 tonnes of cobalt.*
A recent review of the Wingellina deposit has identified within the current resource a high grade cobalt domain of 29.7 million tonnes at a grade of 0.14% Co (cut-off grade of 0.1% Co) or 85.9 million tonnes at a grade of 0.11% Co (cut-off grade of 0.05% Co). There are numerous high grade cobalt intercepts within the Wingellina deposit including:
• WPRC0576 - 38.0m at 0.582% Co.
• RR332 - 25.91m at 0.539% Co.
• RR130 - 18.29m at 0.699% Co.
Refer to Table 2 for additional intercepts
In addition to the Wingellina project the Company's wholly owned Maroochydore Copper Prospect, located approximately 90km from the Nifty Copper Operations, hosts a Mineral Resource of 486,000 tonnes of contained copper and 18,500 tonnes of contained cobalt.*
High grade intercepts at Maroochydore include:
• MRC0034 - 11.00m @ 0.324% Co.
• MAP0008 - 10.00m @ 0.249% Co.
• MAM0002 - 5.20m @ 0.357% Co.
Refer to Table 3 for additional intercepts
The Maroochydore project was subject to a Scoping Study in 1998 and, given the additional exploration potential, is currently being reviewed as an opportunity for a substantial development project.
World annual cobalt supply in 2015 was approximately 100,000 tonnes of which approximately 94% was produced as a co-product from nickel and copper production. The LME official cash price of cobalt, currently trading at approximately A$69,000/t, has more than doubled over the past 12 months and has increased by over 60% during the past 3 months. At prevailing cobalt prices significant co-product credits are added to cobalt-hosting nickel and copper projects such as Wingellina and Maroochydore.
*Refer to ASX announcement of 18 August 2016 for the Annual Update of Mineral Resources and Ore Reserves as at 30 June 2016
ASX Code: MLX
OTCQX Code: MLXEF
Level 3, 18-32 Parliament Place West Perth WA 6005
Australia
reception@metalsx.com.au www.metalsx.com.au
Metals X is continuing to work on options for the development of Wingellina as a polymetallic producer of nickel, cobalt, iron and scandium. Although additional work on the specific cobalt distribution with the nickeliferous limonite needs to be completed, the size and continuity of the higher grade cobalt zones within the larger ore system are highly encouraging and may present a commercial opportunity for cobalt development (with coincident nickel) in its own right.
Ends
ENQUIRIES
Warren Hallam Rod Corps
Managing Director Manager - Investor Relations e: warren.hallam@metalsx.com.au e: rod.corps@metalsx.com.au
COMPETENT PERSONS STATEMENTS
Please refer to Metals X (ASX:MLX) announcement of 18 August 2016 for full details of Mineral Resource and Ore Reserve Estimates.
The information in this report that relates to Exploration Results and Mineral Resources is compiled by Metals X technical employees and contractors under the supervision of Mr. Jake Russell B.Sc. (Hons), who is a member of the Australian Institute of Geoscientists. Mr Russell is a contractor to the company, and has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Russell consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
The information in this report that relate to Ore Reserves has been compiled by Metals X technical employees under the supervision of Mr Michael Poepjes BEng (Mining Engineering), MSc (Min. Econ) M.AusIMM. Mr Poepjes is a full-time employee of the company. Mr Poepjes has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Poepjes consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Mr Poepjes is eligible to participate in short and long term incentive plans and holds performance rights in the Company as has been previously disclosed.
SUBSTANTIAL COBALT INVENTORY | 2 |
PRESS RELEASE |
Figure 1: Overview of Wingellina deposit showing 9 km footprint of +1% Ni resource wireframes, +0.05% Co resource wireframes and potential high-grade open pit outlines. All coordinates are Wingellina 2015 local grid.
SUBSTANTIAL COBALT INVENTORY | 3 |
PRESS RELEASE |
High-Grade Cobalt Occurrences Section A-A1
WPRC0479 WPRC0335
WPRC0480 WPRC0333
WPRC0656
600mRL
WPRC0337
Potential High Grade Pits
WPRC0334
WPRC0332
WPRC0481
WPRC0482
Drill Hole Trace
1% Nickel Resource
0.05% Cobalt Resource
0 M 25 M 50 M
West East
49,600E
49,700E
49,800E
49,900E
50,000E
500mRL
Figure 2: Section A-A1 showingoutlineof+1% Ni resourcewireframes, outline of+0.05% Coresourcewireframes, potential high-grade open pit outlines and the traces of supporting drillhole information. All coordinates are Wingellina 2015 local grid.
Figure 3: Section B-B1 showing outline of +1% Ni resource wireframes, outline of +0.05% Co resource wireframes, potential high-grade open pit outlines and the traces of supporting drillhole information. All coordinates are Wingellina 2015 local grid.
4SUBSTANTIAL COBALT INVENTORY
PRESS RELEASE
Metals X Limited published this content on 20 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 March 2017 02:26:14 UTC.
Original documenthttps://www.metalsx.com.au/system/announcements/816/20170320_Substantial_Cobalt_Inventory.pdf
Public permalinkhttp://www.publicnow.com/view/5F8DF98C380483F94FE64C773977BFABA8B9B0FA