Yes, its early days for GBR and initial results to date are highly encouraging. GBR mineralisation at this early stage is proving to be spread over a vast area. They are also closing in on the high-grade neck and yet to drill to depth. Following airborne EM surveys they have taken on two additional nearby JV’s both prospective for high grade nickel.
Relative to other Australian Nickel projects, current grades in large enough quantities are likely sufficient to support an open cut operation (eg: Mt Keith) however higher grades can be expected in time.
Nickel in Australia Western Australia is currently the sole producer of nickel in Australia. The state’s nickel resources consist of both sulphide and lateritic deposits, with most production derived from nickel sulphide mines. The first major nickel sulphide deposit was discovered at Kambalda with other deposits around Mount Keith, Perseverance and Yakabindie.
Potential for further discoveries exists and is highlighted by the recent nickel-cobalt-copper discovery at Nova in the new nickel province of the Albany-Fraser region in southern Western Australia. Nebo-Babel is a significant nickel sulphide deposit in Western Australia’s Musgrave Province.
In 2016-17, nickel was Western Australia’s fourth most valuable mineral sector, worth $2.3 billion.
BHP - Nickel West In 1971 the Mount Keith Mine was considered to have the capacity to provide 10 percent of the world's nickel requirements, the ore body extends for a distance of two kilometres and is generally regarded as consisting of sizable low grade disseminated nickel sulphide of around 0.5% Ni. Today, after 47 years, Mount Keith is still producing and after extending operations into Leinster and Yakabindie, both of which have a similar low grade around 0.5%, production should extend well into the 2030’s.
Current grades (click to enlarge)
Independence Group Based on the following grades, Independence Group recently acquired Sirius Resources for $1.8 billion.
Current grades:
GBR Price at posting:
20.0¢ Sentiment: None Disclosure: Held
