Photo: Exploration-work-Australian-Mines-Exploration-Manager-Stuart-Peterson-on-site-at-the-Sconi-Project.

Australian Mines is looking to build on its strengths at its mineral leases north west of Townsville.  

It’s backing up off-take agreements for its nickel and cobalt with more exploration.

Australian Mines entered into a binding long form offtake agreement with LG Energy Solution (LGES) in August 2021 for mixed nickel-cobalt hydroxide precipitate sourced from Sconi. ­­

During the initial six-year term of the offtake agreement LGES has agreed to purchase 71,000 dry metric tonnes (DMT) of nickel and 7,000 DMT of cobalt. 

The additional exploration program is intended to complement the existing resource at the Sconi Nickel- Cobalt-Scandium Project.

Australian Mines has advised the ASX the exploration program encompasses fourteen targets, … in the first instance via surface soil and rock sampling, field portable XRF geochemical analysis and geological mapping. 

The results of the current program will be used to plan the next phase of exploration at the Sconi Project, which is intended to include a reconnaissance drilling program of priority targets. 

Further infill and extensional drilling phases may then follow, which would be designed to increase confidence in the grade and volume. 

The additional exploration activities being undertaken at Sconi may result in an upward revision of the project’s mineral resource and the project life span, with the potential to enhance the longer-term commercial potential of Sconi, the company told the ASX.