GME Resources (ASX:GME) has finalised sonic core metallurgical drilling at its NiWest Nickel Laterite Project in Western Australia.
The company recently raised $1.4 million from a non-renounceable rights issue.
The program generated over five tonnes of lateritic nickel ore sample that is now at the HRL laboratory in Brisbane in readiness for assaying.
The first stage of test work covers batch testing through bottle roll tests to determine the extent and variability of typical leach kinetics and acid consumptions.
Crushing, agglomeration and heap height optimisation test work will follow and includes hydrodynamic and geotechnical work.
Large scale column tests will be undertaken that will generate up to eight tonnes of pregnant nickel solution to be used to conduct both batch and continuous pilot plant tests for iron removal and direct solvent extraction.
The program is designed to cover all aspects of the flow sheet and provide engineering data required to feed into the definitive feasibility study.
The recently completed scoping study has determined the optimum start up production rate for the heap leach project to be 1.5 million tonnes per annum.
Near surface, low strip ratio open pit mining of the defined resources at NiWest are sufficient to maintain this rate for at least 20 years.
All of the test work completed on the NiWest ore types over the past seven years has consistently supported nickel extraction rates above 70%.
It is the combination of these factors and the unique chemical makeup of the NiWest ore types that provide the potential to develop a simple, long term nickel heap leach operation at a capital cost which is not dissimilar to a nickel sulphide project of this size.
In July, the company identified a gold mineralised structure following aircore drilling at its Abednego project in the North Eastern Goldfields.
This has gold grades ranging from 1 to 2 grams per tonne and up to 10 metres width.
GME is valued at around $13 million.
