Nex Metals and its Aboriginal partner WTAC have applied for a 100ha lease to build processing infrastructure for the Kookynie Tailings Project, while metallurgical tests show promising gold recovery rates and potential tungsten by-product.
- Applied for 100ha General Purpose Lease near Kookynie
- Up to 71% gold recovery achieved in lab tests
- Potential tungsten by-product identified via scheelite
- Joint venture with WTAC aims to own processing plant
- Further test work underway to optimise processing flowsheet
Lease Application Signals Shift to Owned Processing Infrastructure
Nex Metals Explorations (ASX:NME) is taking a significant step towards controlling its Kookynie Tailings Project processing by applying for a 100-hectare General Purpose Lease (GPL) roughly 10km east of the tailings site. This move, made through the Nex Wongatha JV with Wangkatja Tjungula Aboriginal Corporation (WTAC), aims to establish jointly owned processing infrastructure, moving away from reliance on toll treatment and potentially boosting project economics.
The GPL application remains subject to regulatory approval, and no guarantees exist that the full area applied for will be granted. However, if successful, the site could become the hub for processing gold tailings, underpinning the project's next development phase.
Metallurgical Tests Confirm Up to 71% Gold Recovery
Recent metallurgical test work has demonstrated that a relatively conventional processing approach can recover up to 71% of gold from the tailings. This marks a substantial improvement from initial direct cyanidation tests that achieved 52%, with carbon-in-leach (CIL) and light grinding prior to CIL driving the gains. The 71% figure represents a 19-percentage point uplift, or about 37% more gold recovered compared to the baseline.
These results stem from laboratory-scale testing and should not be interpreted as guaranteed commercial recovery rates. Further optimisation is underway, including testing finer grind sizes to enhance gold liberation without complicating the process flow.
Tungsten By-Product Opportunity Emerges
Alongside gold, Nex Metals has identified scheelite, a tungsten-bearing mineral, in the tailings. Assays from bulk samples showed tungsten concentrations of 0.05% W (0.063% WO₃), and gravity concentrates fluoresced under ultraviolet light, confirming scheelite’s presence.
This discovery aligns with historical records from the Cosmopolitan Gold Mine area and opens the door to recovering tungsten as a secondary product. Further evaluation is planned to assess the commercial viability of tungsten recovery alongside gold.
Representative Sampling Supports Confidence in Tailings Grade
Bulk sampling and historical drilling data align closely, with gold grades around 0.94 to 0.96 g/t confirmed in both recent 50 kg samples and the 2017 air-core drilling program. This consistency bolsters confidence that the metallurgical test work is representative of the broader tailings inventory, providing a solid foundation for ongoing optimisation efforts.
Environmental testing has also been favourable, with no deleterious elements detected above World Health Organization guideline levels, simplifying downstream processing and regulatory considerations.
Partnership and Next Steps
The Kookynie Tailings Project continues under the Profit Sharing and Empowerment Agreement with WTAC, with the joint venture structure pivotal to advancing development. While the lease application and metallurgical work mark progress, no final decision has been made on the processing pathway or infrastructure deployment.
Investors should watch for updates on the GPL approval process and results from ongoing test work refining the processing flowsheet. The potential to capture both gold and tungsten revenues, combined with infrastructure ownership, could materially influence the project’s economics and Nex Metals’ strategic position in the WA gold sector.
Bottom Line?
Nex Metals is positioning itself to capture more value from Kookynie tailings by seeking processing plant ownership and improving recovery rates, but key approvals and optimisation remain ahead.
Questions in the middle?
- Will the General Purpose Lease be granted in full and on what timeline?
- How will further metallurgical optimisation impact projected recoveries and processing costs?
- Could tungsten recovery materially enhance project economics or complicate processing?