Dear Shareholders
March was a significant milestone month for Widgie Nickel, and on behalf of the team I am very proud to have delivered a Scoping Study highlighting the potential of our Mt Edwards Nickel Project.
The standalone concentrator contemplated in the Study delivers a compelling case, including low operating costs, higher payabilities and the benefits of control of Widgie’s integrated mining and milling process.
The Study outlines how Widgie’s resource base is able to supply a steady state production profile with a production rate of ~800,000tpa, and additional upside potential from the 7 nickel deposits not contemplated by this Study. It is Widgie’s unique ability to maintain a steady production rate able to underpin a standalone concentrator that really differentiates Widgie from other aspiring nickel producers in the region.
The details of the Scoping Study are outlined in this announcement and our latest presentation. If you would like to view the replay of the webinar I hosted with details of the Scoping Study, you can find the replay of that on our website at this link.
As I discussed in the webinar, we see this as a significant step forward for the company and we truly believe we have a great project at Mt Edwards. We are highly attuned to nickel price trends, and we are conscious of the current market dynamics in play. Regardless of the near-term price pressures, the Widgie Board has confidence that the overall market demand fundamentals are there to support the nickel price rebounding over future years.
Furthermore, as a new project, we have the potential to garner support from recently announced State and Federal Government programs to uphold a vibrant and sustainable nickel industry in WA and Australia. The government has a clear mandate to see Australia develop a battery industry and is willing to support its development through funding and subsidies.
I can only reiterate that we are derisking a nickel project for the future, not one to be developed today.
To that end, we are looking ahead to the future, and we take great encouragement from the areas of opportunity detailed in the Study, including:
Mine Life Extensions and Resource Growth: Mineralisation is considered to remain open at all Resources in the Scoping Study, other than Armstrong, and further drilling may increase the size of these deposits. Widgie has 7 additional deposits located close to the planned operation which can be considered in further studies to provide additional mill feed thus increasing mine life.
Capital and operating cost reduction: Opportunities exist to consider suitable dormant processing plants and other infrastructure items in the region, which may lead to reduced capital costs of the Project. Additional opportunity to reduce capital intensity through potential expansion of output and/or mine life are self-evident. The opportunity exists for in-pit tails storage disposal thereby reducing capital requirements and operating costs.
Mining Costs may be reduced through competitive tender processes or achievement of higher development rates resulting in a compressed schedule (ie more output with less resources).
Metallurgical testwork and process improvements to further enhance outcomes.
Product payability and offtake. Customised concentrate specifications can ensure a competitive produce sale process and attract a premium. The potential for ethically sourced nickel supply may ultimately attract a green premium.
Permitting and approvals process to start now, to avoid delays seen elsewhere in WA.
Downstream processing to be evaluated, potential to reduce ex mine gate costs and increase payabilities. Considering the production of nickel sulphate from the current proposed nickel concentrate and the further potential to make battery precurser products at the mine not only increase the effective payability of our nickel but reduces the total carbon footprint credentials of the product to an absolute minimum.
What does Widgie have in store for the coming months? We intend to continue to progress the Mt Edwards Nickel Project to prepare for the Pre-Feasibility Study stage, spending the next 12 months working through some of the key aspects of the PFS as we start to unlock the value of developing this project.
We also have our ongoing lithium exploration program underway, where our field team is on the ground re-evaluating Widgie’s tenure for lithium prospectivity. Lithium markets appear poised to turn – with “Mr Lithium” Joe Lowry talking about the market bottom happening this year, and Fastmarkets predicting a 500% growth in US lithium demand by 2030 - demand fundamentals remain strong.
Widgie’s lithium exploration program has already delivered two new discoveries at its Farson and Gemini Lithium Prospects, and we are looking forward to bringing further news on this program to our shareholders.
If you have any questions, my contact details are below. I would also encourage you to follow the Widgie Nickel social channels LinkedIn; X (Twitter); and to join our mailing list via our website here.
The company is appreciative of your ongoing support in what has been uncertain times for the battery metals industry as a whole.
Steve Norregaard
Managing Director, Widgie Nickel
steve@widgienickel.com.au
0472 621 529
