Good guys - have had a bit of bad luck though. MLX's most significant asset is the Wingellina nickel project - its a definite company maker. Problem is, its located in an isolated region in Central Australia, despite it having a highly attractive grade, stripping ratio and metallurgical characteristics. But there is no doubt in my mind it in the long term that this deposit will be developed.
Just not by MLX ???
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The Wingellina prospect is part of the Central Musgrave project, straddling the WA/SA/NT borders in Central Australia. Wingellina's nickel limonite resource is the 15th largest undeveloped nickel oxide resource in the world. It contains an estimated 2Mt of contained nickel metal and over 150kt in contained cobalt, with 85% of the resource now having JORC-compliant measured and indicated resource status. Mineralisation is substantial in scale, occurring over widths of up to 600m, along a strike length of some 9km and to depths of up to 200m (typically 80m100m). The mineralised system remains open along strike and there is significant potential for depth extensions in many areas of the deposit that were previously tested only by shallow drilling.
The scoping study covering conceptual mining plans for an initial 46- year production facility. The operation is expected to produce 40kt of nickel metal hydroxide complexes per annum, which will also contain approximately 2kt of recoverable cobalt as a co-product.
Metallurgical test work (to date) indicates recoveries in the order of 92%-96% for both nickel and cobalt from a HPAL (high-pressure acid leach) phase after 60 minutes of leaching at a temperature of 255 degrees Celsius. Acid consumption is estimated to be approximately 300kg per tonne of ore. As part of the feasibility study, a number of technical assessments by the company have commenced, including mine planning and scheduling, infrastructure and services, as well as hydrological and process water procurement studies.
MLX Price at posting:
9.6¢ Sentiment: None Disclosure: Not Held
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