Ann: Nico Confirms High Grade Pits for First Decade of Production, page-5

Page 1 of 51 (just some basics)
ASX Announcement Nico Resources Limited ASX: NC1

19 January 2023
Nico confirms high grade pits for first decade of production
Nico Resources Limited (“Nico” or the “Company”) (ASX: NC1) is pleased to announce that it has received all
the assay results from the infill reverse circulation (RC) drilling program completed in October 2022 at its 100%
owned Wingellina Nickel-Cobalt Project (“Wingellina” or the “Project”) in Western Australia. The program
comprised 152 Reverse Circulation (“RC”) holes for 7,856m of drilling and was a continuation of work initiated
in 2017 to infill 15 high-grade nickel-cobalt domains delineated from the resource model as potential high-grade
starter pits.
The results confirm the continuity within the identified high-grade nickel and cobalt domains and provides key
inputs into future production scheduling. In particular, it is anticipated that sufficient higher-grade tonnage will
be available for the initial 10 years further improving the project economics.
Assay Highlights
• WPRC0758: 74m @ 1.26% Ni and 0.09% Co (1.46% Nieq) from surface
• WPRC0759: 86m @ 1.25% Ni and 0.10% Co (1.47% Nieq) from surface
• WPRC0760: 90m @ 1.50% Ni and 0.12% Co (1.77% Nieq) from surface
• WPRC0761: 70m @ 1.45% Ni and 0.12% Co (1.71% Nieq) from 2m
• WPRC0766: 26m @ 1.81% Ni and 0.16% Co (2.16% Nieq) from 2m incl. 8m @ 3.73% Ni from 18m
• WPRC0798: 72m @ 1.30% Ni and 0.11% Co (1.54% Nieq) from surface
• WPRC0799: 64m @ 1.39% Ni and 0.07% Co (1.55% Nieq) from 2m
• WPRC0801: 12m @ 1.93% Ni and 0.04% Co (2.02% Nieq) from 26m incl. 4m @ 3.58% Ni from 32m
• WPRC0813: 92m @ 1.18% Ni and 0.10% Co (1.39% Nieq) from surface
• WPRC0822: 56m @ 1.47% Ni and 0.11% Co (1.70% Nieq) from 4m
• WPRC0880: 50m @ 1.68% Ni and 0.08% Co (1.85% Nieq) from surface incl. 10m @ 2.29% Ni from 30m
Results are reported with a weighted average grade of ≥ 0.5% Ni with a maximum internal dilution of 6m.
Higher-grade intercepts use a cut-off grade of ≥ 2.0% Ni
Commenting on the Nico’s exceptional infill drill results, Rod Corps, Managing Director, said:
“These outstanding drill results continues to demonstrate the Tier 1 nature of the Wingellina Nickel-Cobalt
Project. With intercepts like 90m at 1.77% Nieq and 8m at 3.73% Nieq demonstrating the significant potential
within the broader orebody. One could be forgiven for thinking these sorts of grades and widths would be
associated with a sulphide orebody!
The inclusion of these high-grade nickel and cobalt results will further enhance the already very robust Project
economics estimated from the recent PFS to be a post-tax NPV8 of A$3.34bn – A$6.54bn under the Base Case
and Spot Case respectively (refer ASX announcement 22 December 2022). The results and other potential
upside benefits will be incorporated in the updated mine schedule and the Wingellina Definitive Feasibility Study
(“DFS”).
ASX Announcement
Released 19 January 2023
2
The results continue to illustrate that Wingellina is a world-class orebody and geological system that exists in its
own class, boasting an initial reserve capable of producing approximately 40,000t of nickel and 3,000t of cobalt
for 42 years.
Overall, the drilling results will define the high grade production scheduling for the first 10 years of operation,
finalising a further key input into DFS as we progress towards the development of the Wingellina project.”

GLAH Mal ..