Alliance Nickel is advancing its NiWest project by exploring vat leaching to reduce capital costs and has completed initial gold drilling at Wanbanna, while continuing offtake talks with Stellantis and considering a NASDAQ listing via de-SPAC.
- Capital cost optimisation underway via vat leaching replacing heap leaching
- Potential significant savings on water infrastructure costs
- Completed 10-hole gold drilling program at Wanbanna with assays pending
- Ongoing revised nickel offtake negotiations with Stellantis
- Board evaluating de-SPAC merger options for NASDAQ listing
Capital Cost Optimisation at NiWest
Alliance Nickel Limited (ASX:AXN) has initiated a capital cost optimisation program for its flagship NiWest Nickel-Cobalt Project, focusing on replacing the previously planned heap leaching process with vat leaching technology. This shift aims to significantly reduce the project's capital expenditure, primarily by cutting down on the extensive water infrastructure required under the heap leach design.
Preliminary analysis suggests that vat leaching, which operates at atmospheric temperature and pressure, could allow the project to source water locally from the Mt Kilkenny tenement, eliminating the need for the circa $310 million water infrastructure outlined in the 2024 Definitive Feasibility Study. The company is collaborating with hydrometallurgical experts to complete a desktop study, with early indications pointing to both capital and operating cost benefits.
Gold Exploration Progress at Wanbanna
In parallel, Alliance Nickel has completed a preliminary reverse circulation drilling program at its Australia United Gold Mine within the Wanbanna tenement area. The 10-hole program, totaling approximately 720 metres, was finished safely and has yielded encouraging initial geological observations. Samples have been sent for assay, with results expected soon. This exploration effort reflects the company’s strategy to leverage the high gold prices by assessing additional value from its tenements beyond nickel and cobalt.
Offtake and Strategic Discussions
Alliance Nickel continues to engage with Stellantis N.V. regarding revised nickel offtake terms. Stellantis has expressed support for the company’s capital cost optimisation initiatives and remains open to alternative processing and product outcomes. Formal feedback on the revised terms is awaited, with updates promised in due course.
Meanwhile, the Board is exploring de-SPAC merger opportunities as a potential route to a NASDAQ listing. Although the previous termination of an offtake agreement with Stellantis has tempered the immediate appeal of this pathway, the company remains committed to evaluating whether such a transaction could deliver shareholder value and enhance market access.
Looking Ahead
Managing Director Paul Kopejtka emphasised the company’s focus on cost discipline amid challenging nickel prices and highlighted the promising early results from the vat leaching study. He also noted the strategic importance of pursuing gold exploration concurrently to unlock further value from Alliance Nickel’s diverse asset base.
As the optimisation program advances and assay results from Wanbanna emerge, investors will be watching closely for signs of improved project economics and potential new revenue streams. The outcomes of Stellantis negotiations and de-SPAC discussions will also be pivotal in shaping Alliance Nickel’s growth trajectory.
Bottom Line?
Alliance Nickel’s cost-cutting and exploration efforts could reshape NiWest’s economics, but key results and deal terms remain pending.
Questions in the middle?
- Will vat leaching deliver the anticipated capital and operating cost savings at NiWest?
- What do the upcoming gold assay results reveal about the Wanbanna tenement’s potential?
- How will Stellantis’ feedback on revised offtake terms influence Alliance Nickel’s commercial outlook?