The search for nickel can be long and laborious, and filled with near misses, so NickelSearch is teaming up with its neighbour, Allkem, to accelerate the assessment of the potential for lithium in its ground.

 

Allkem, owner of the Mt Cattlin operation that is just 10km away, is already a globally significant lithium miner, and set to get even bigger if it can consummate its circa A$16 billion merger with Livent.

 

That corporate move makes Mt Cattlin a much smaller part of the whole, and there has been speculation since day one that the hard rock mine might become non-core, especially with limited visibility for mine extension that could rely on going underground.

 

Allkem has rebuffed that talk, saying Western Australia is one of the world's key hard rock lithium sources and could remain a core area.

 

Amid ongoing consolidation in the lithium space, Allkem will lend its technical nous to NickelSearch, having already reviewed the existing data over Carlingup.

 

NickelSearch first discussed the potential for lithium earlier this year with an initial ultra-fine soil sampling across part of its holdings that defined 22 areas of interest and four priority targets in the ‘Goldilocks Zone' off local granites.

 

Allkem will suggest areas for additional rock chip and stream sediment sampling to refine high-priority targets.

 

Duncan stressed there was no formal joint venture that this stage, nor any firm budget, but said the technical collaboration could broaden if the results of greenfield exploration bear fruit. 

 

Allkem has flagged latent capacity at Mt Cattlin to potentially toll-treat third-party product before the end of the decade. 

 

NickelSearch shares were up 166% today to 6.7c, capitalising it at $9 million

 

The stock has traded at 3.1-17c over the past year.