Highlights

  • Phase 1 vat-leach metallurgical testwork at NiWest was completed with encouraging preliminary results.
  • The Board approved Phase 2 testwork, targeted for completion by end of Q4 2026.
  • Vat leaching could significantly reduce the A$310 million of water infrastructure in the 2024 DFS.
  • Cash at quarter end was $1.95 million, with an estimated funding runway of 5.55 quarters.

Alliance Nickel Limited (ASX:AXN) has released its September 2026 quarterly activities report. The quarter focused on evaluating vat leaching as an alternative processing route for its 100%-owned NiWest Nickel-Cobalt Project in Western Australia's Eastern Goldfields.

Vat-Leach Testwork Progress

Phase 1 metallurgical testwork was completed at an overseas facility using about two tonnes of ore delivered in June 2026. Preliminary nickel and cobalt extraction results were described as encouraging, though final results remain subject to further testing.

The Board approved Phase 2 testwork, and additional ore composites have been dispatched, with completion targeted by the end of Q4 2026. Vat leaching may significantly reduce water infrastructure needs. The 2024 DFS included about A$310 million for water infrastructure, including a pipeline over 200km long, and preliminary work suggests local water could be sourced from the Mt Kilkenny area, subject to verification.

NiWest Project Fundamentals

The November 2024 DFS remains the published base case, with an initial capital cost of A$1.65 billion and average production over the first 12 years of about 20,000t of nickel and 1,600t of cobalt a year across a 35-year mine life. Ore Reserves stand at 84.7Mt at 0.94% Ni and 0.06% Co.

The JORC Resource is 93.4Mt at 1.04% Ni and 0.069% Co. NiWest holds Major Project Status, and the 2023 Stellantis partnership includes an offtake for about 40% of future production, which is being renegotiated. No revised feasibility study has been completed for the vat-leach option.

Financial Position

Alliance Nickel held $1.95 million in cash at quarter end, with an operating cash outflow of $274,000. Loan facilities of $5.2 million are fully drawn at 13% interest and mature on 30 June 2027.

The Appendix 5B estimates a funding runway of 5.55 quarters. The company had 830,144,011 shares on issue and a market capitalisation of about $23.24 million at 30 September 2026. LME nickel traded mostly between US$16,000 and US$17,200 per tonne during the quarter.

Key Takeaways

  • Vat leaching is being assessed as a potentially lower-infrastructure route for NiWest.
  • Phase 2 testwork results are expected by the end of Q4 2026.
  • The 2024 DFS remains the base case until a revised study is completed.
  • Debt maturity in June 2027 and limited cash are important considerations.