Metals X’s Managing Director, Peter Cook said “this is a major endorsement of the potential of the Central Musgrave Project which includes the Wingellina Nickel Limonite deposit. It is a significant step forward for both the Company and the State of Western Australia. The Jinchuan Group is a world leader in both the nickel industry and the construction of, and operation of High Pressure Acid Leach plants.” Wingellina today is estimated to be the 16th largest undeveloped Nickel Oxide deposit in the world and preliminary scoping study works suggest that it may progress into a mining operation producing approximately 40,000 tonnes of Nickel in metal hydroxide complexes also containing approximately 2000 tonnes of recoverable Cobalt metal as a co-product. “The future of Metals X looks bright. Our strategic positioning in both the nickel and tin industries has placed us into the two hottest metals in the base metal market. Through Jinchuan, we will have a strategic partner who has both the financial capacity and technical capability to assist us with the process of turning Wingellina into one of the Country’s largest and long life nickel producers.”
Metals X also has a strong nickel royalty portfolio which earns annual royalty income as a percentage of totals sales from the Mt Keith mine and Kambalda (East Location 48 only) mines. In the last quarter receipts from these royalties totalled $2.85 million and these royalties are without exposure to capital and operating risk and provide uncapped exposure to higher nickel prices.
In parallel with its Nickel business, Metals X continues to advance its tin assets. Metals X is currently Australia’s largest tin producer from our newly developed Collingwood Tin Project, albeit at a modest 3500-4000 tonnes per annum. In response to stronger tin prices, Metals X has plans to recommence its Renison Project in the current year. The Rentails tailings re-treatment and tin fumer project has achieved its technical objectives and we are planning to commence pilot testing as a final step before completion of a bankable feasibility study. Collectively, these projects can elevate the Company to be a top 10 global producer of tin