Metals X buys out Rio Tinto

THE BOURSE WHISPERER: Metals X Limited (ASX: MLX) has completed the acquisition of Rio Tinto Exploration’s interests in the Mt Davies Joint Venture in South Australia.

The consideration for the acquisition is $500,000 and 870,000 fully paid ordinary shares and is subject to the normal provisions for the transfer of titles, agreements and rights with the SA government and the Anangu Pitjantjatjara Yankunytjatjara.

“This acquisition further consolidates the foundations for the Wingellina project,” Metals X chief executive officer Peter Cook said in the company’s announcement to the Australian Securities Exchange.

Metals X said the acquisition consolidates its ownership of the Wingellina layered intrusive complex in the Central Musgrave Ranges.

The tenement is situated within the company’s 100 per cent-owned tenement EL4751.

This tenement was previously subject to a farm-in agreement with Rio Tinto in which Metals X was earning a 51 per cent interest.

“For the first time for many decades the entire Wingellina Layered intrusive has been consolidated into one entity,” Cook explained.

“Despite the enormous resources that already reside at Wingellina and Claude Hills, the potential for additional resources is significant and so is the potential for a virgin nickel and/or copper sulphide discovery.

“Although the current nickel price is depressed, these projects are extremely long-life and of a magnitude that means they will definitely be developed at some time in the future.”

The tenement hosts part of the Claude Hill deposit, which consists of an Inferred Resource of 33.3 million tonnes grading 0.81 per cent nickel and 0.07 per cent cobalt.

Claude Hills will now be 100 per cent-owned by Metals X.

The deposit is located approximately 25 kilometres to the east of the Wingellina deposit which hosts a Total Mineral Resource of 183.2 million tonnes at 0.98 per cent nickel and 0.08 per cent cobalt, containing almost 1.8 million tonnes of nickel and a Probable Mining Reserve of 167.5 million tonnes at 0.98 per cent nickel and 0.08 per cent cobalt.

Metals X said the consolidation of the tenure in the region provides it with an opportunity to extend its known nickeliferous limonite deposits in the region.

The company considers the move could also boost Wingellina to possibly become the largest undeveloped and independently owned nickel deposit in the world.

In the past year, Metals X has focused its exploration efforts in the Musgrave region on the discovery of nickel and copper sulphides.

It explained this has been due to many known deposits within the world having been located within similar geological settings.

The company recently completed an airborne electro-magnetic survey (Spectrum) covering 5,370 line kilometres, which defined a number of conductors considered to potentially be buried nickel and/or copper sulphides.