The Marriotts nickel deposit is located approximately 70 km south of Leinster, and 80 km north of Leonora. Norwest holds a 100 percent interest in a single Mining Lease (M37/96), covering an area of approximately 0.16 square kilometres. The nickel deposit was remodelled in October 2019 to define a total resource of 743,000 tonnes at 1.07% Ni for 7,950 tonnes of contained nickel. A significant tonnage of the new resource reports to the higher confidence ‘Indicated Resources’ category as shown in the table below.
The Mineral Resource for the Marriotts Nickel project as at 21 October 2019
(0.6% lower cut-off)
|Indicated Resources||Inferred Resources||Total Resources|
|Kt||Ni (%)||Tons Ni||Kt||Ni (%)||Tons Ni||Kt||Ni (%)||Tons Ni|
The new Marriotts model has a precise mineralisation wireframe which has increased the reliability of the interpretation resulting in the high amount of Indicated tonnage. The previous January 2018 model used a wireframe described an inaccurate in many areas which allowed some of the higher nickel drill grades to spread beyond reasonable limits during block grade interpolation. As a result of restricting the spread, the overall grade of the new Marriotts resource has dropped from 1.3% to 1.07%. (Note: the January 2018 Inferred resource totalled 662,000 tonnes at 1.3% nickel for 8.700 tonnes contained nickel metal)
A preliminary mining and economic study was completed on the new Marriotts resource.
The key findings are:
- At current nickel price Marriotts project produces a negative cashflow
- A nickel price of US$8.50 per pound is required to achieve a positive cashflow (no capital allocation)
- A nickel price of US$9.00 per pound produces cashflow of $6 million