Nico Resources has progressed key development activities at its Wingellina nickel-cobalt project, preparing for an infill drilling campaign as nickel and cobalt prices rally on Indonesian supply policy shifts.
- Planned infill drilling program to upgrade resource classification
- Upgrades to Wingellina exploration camp completed
- Metallurgical testwork supports future Definitive Feasibility Study
- Nickel and cobalt prices strengthened due to Indonesian government supply controls
- Cash position of $2.8 million with reduced discretionary spending
Wingellina Project Progresses Despite Market Volatility
Nico Resources Limited has provided its quarterly update for the period ending 31 December 2025, highlighting steady advancement of its flagship Wingellina nickel-cobalt project in Western Australia. The company is moving forward with detailed planning for an infill drilling program aimed at upgrading the resource classification from Indicated to Measured, a critical step towards refining mine planning and advancing the project’s development.
The Wingellina deposit remains a globally significant asset, boasting a JORC-compliant resource of 187.3 million tonnes at 0.91% nickel and 0.06% cobalt, containing approximately 1.7 million tonnes of nickel metal. The project’s long life and low operating costs underpin its Tier 1 status, confirmed by a pre-feasibility study completed in late 2022.
Geometallurgical Modelling and Drilling Plans
In collaboration with ERM, Nico has completed Phase 1 of a geometallurgical model that categorises material types within the orebody based on geological and geochemical characteristics. Phase 2 is underway, involving an infill drilling campaign designed to collect additional samples for metallurgical variability testing and to improve resource confidence. The planned program includes 94 reverse circulation drill holes over the South Domain, with further drilling anticipated in the Central and Northern Domains.
These efforts aim to fill knowledge gaps, particularly around density data, which currently limits resource classification upgrades. By increasing drill density and collecting downhole density measurements, Nico expects to convert a significant portion of Indicated Resources to Measured status, thereby reducing project risk and enhancing mine scheduling accuracy.
Infrastructure and Metallurgical Advances
To support upcoming field activities, Nico has upgraded its exploration camp at Wingellina, including the installation of new diesel generators, electrical system reviews, fire safety enhancements, and accommodation refurbishments. These improvements ensure compliance with health, safety, and environmental standards ahead of the drilling program.
Metallurgical testwork continues to underpin the project’s progression towards a Definitive Feasibility Study (DFS). Recent results indicate a potential 10% upgrade in nickel head grade through ore preparation improvements, alongside valuable data on metal recovery, reagent consumption, and material handling. This testwork is critical to optimising processing flowsheets and maximising economic returns.
Market Dynamics and Regulatory Environment
The quarter saw a notable rally in nickel prices, climbing from around US$14,100 per tonne to approximately US$18,000 per tonne by January 2026, the highest since mid-2024. Cobalt prices also strengthened significantly. This surge is largely attributed to Indonesian government policies tightening nickel ore supply, including reduced mining quotas and increased royalty rates. These measures are expected to tighten global supply, potentially erasing the projected nickel market surplus in 2026 and supporting higher prices.
While the nickel market remains volatile, these developments may improve the economic outlook for projects like Wingellina, which are positioned to benefit from sustained higher prices. However, the company remains cautious, opting to reduce discretionary expenditure until market conditions stabilise.
Stakeholder Engagement and Environmental Commitments
Nico continues active engagement with Traditional Owners, the Ngaanyatjarra Council, and government agencies to secure necessary approvals and foster positive community relationships. The Wingellina Project’s designation as a Major Project Status by the Federal Government facilitates streamlined regulatory processes and underscores its strategic importance in Australia’s critical minerals landscape.
The company also maintains a strong focus on environmental and social governance, developing systems aligned with international standards and reporting transparently on sustainability initiatives.
Financial Position and Outlook
At quarter-end, Nico held $2.814 million in cash and working capital, with exploration expenditure of $202,571 during the period. The company issued shares and options to directors as part of remuneration arrangements, with major shareholders including Metals X Limited and Ajava Holdings Pty Ltd.
Looking ahead, Nico plans to commence its infill drilling program, continue metallurgical testwork, and advance the DFS scope while maintaining prudent financial discipline. The company is also exploring potential value-add opportunities, including preliminary investigations into platinum group element potential within its tenure.
Bottom Line?
Nico’s measured progress at Wingellina, set against a backdrop of rising nickel prices and tightening supply, positions it well, but the path to production hinges on securing approvals and successfully upgrading its resource base.
Questions in the middle?
- When will regulatory approvals for the infill drilling program be finalized?
- How will ongoing Indonesian supply policies impact nickel prices and project economics long-term?
- What are the timelines and expected outcomes for the Definitive Feasibility Study?