Question 8
Spargoville JV/Sale
Are we getting into bed with BHP and providing higher-grade 3rd party ore to the Kambalda nickel concentrator to top up overall production?
This is from the 1/2 yearly!
SPARGOVILLE NICKEL RIGHTS PROJECT, 100% WAThe Company has been progressing the potential development of the high grade 5A nickel sulphide deposit during the half-year with Permit of Work application and Exploration Notification being finalised for the extraction of a bulk sample of the 5A ore for "metallurgical" testing. ,
In light of the recent strength in the nickel market and the positive outlook, the Company has undertaken steps towards commercialisation of the 5A nickel sulphide Mineral Resource with discussions ongoing regarding the treatment of potential high-grade nickel sulphide ore recovered from shallow open pit mining.Due to tight constraints of the current land tenure with the proposed mining area, the Company has been in discussions with adjacent landholders for the use of their land to allow the full extraction of the identified 5A ore.
Previous drilling has highlighted high-grade nickel mineralisation very close to surface and a simple pit cut back of the historic 5A mine has strong merit in light of the current nickel market.
The 5A nickel sulphide deposit is one of a number of significant nickel sulphide occurrences that make up the Company’s 100% owned Spargoville Nickel Rights Project which was purchased at a time when nickel projects were not in favour and nickel prices were much lower.
Could this be the cash cow that we have been waiting for???
ESR gets a 30% royalty and retains 100% ownership of Spargoville
Kambalda(BHP) Mines the shallow high-grade Ni at 5A (Massive sulfides are just 20m from surface), covers all extraction costs, all transport costs in return for a 30% royalty.
Esr gets an income stream
BHP tops up its concentrate grades
(20min delay)