Why Nico Resources (ASX:NC1) reported infill drilling progress at its Wingellina nickel-cobalt project in its September quarterly

Sonal Goyal

28 October 2026 04:40 PM AEDT

Why Nico Resources (ASX:NC1) reported infill drilling progress at its Wingellina nickel-cobalt project in its September quarterly

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Key Highlights

Infill reverse circulation drilling at Wingellina was about 70 per cent complete, with 65 holes totalling 4,300 metres drilled and first assays expected around mid-November 2026.
The 2024 Mineral Resource is 187.3 million tonnes at 0.91 per cent nickel and 0.06 per cent cobalt, and a definitive feasibility study scope is in progress.
Cash was A$4.318 million at 30 September 2026, with an estimated funding runway of 7.95 quarters.

Nico Resources Limited (ASX:NC1) reported in its quarterly report for the period ended 30 September 2026 that infill reverse circulation (RC) drilling at the Wingellina nickel-cobalt project in Western Australia began in early September and was about 70 per cent complete at quarter end. The company said 65 holes totalling 4,300 metres had been drilled, and that first assay results are expected around mid-November 2026.

Infill drilling program

Clearing for the program was completed in June 2026, and drilling started after delays from rig maintenance and weather. The planned program is 94 holes for about 6,062 metres on a staggered 50 metre by 25 metre grid in the South Domain, with further infill planned in the Central and Northern Domains. Around 2,400 two-metre composite samples had been sent to Intertek, and the company expects drilling to finish in the December quarter.

Downhole geophysics crews arrived at the end of the quarter to collect density data, with early results described as positive. The company said its consultant ERM recommends density data from 10 to 15 per cent of RC holes. The aim of the work is to convert Indicated resources to the Measured category. Nico estimated that about 200,000 metres of additional RC drilling would be needed for 25 metre by 25 metre spacing across the whole deposit, and said it plans to phase this, starting with higher-grade areas likely to be mined in the first ten years.

Resource, studies and metallurgy

Wingellina's 2024 Mineral Resource is 187.3 million tonnes at 0.91 per cent nickel and 0.06 per cent cobalt, including 1.7 million tonnes of contained nickel, of which 164.1 million tonnes is Indicated and 23.3 million tonnes Inferred. The company's pre-feasibility study indicated production of about 40,000 tonnes of nickel and 3,000 tonnes of cobalt a year as mixed hydroxide precipitate for at least 42 years. Work on the scope and definition documentation for a definitive feasibility study is in progress. The report quotes two different Ore Reserve tonnages, 164.8 million and 168.4 million tonnes, and gives differing dates for the pre-feasibility study, so readers should consult the company's original studies.

Review of bench-scale testwork by ALS continues, and the company said ore preparation work suggests rejecting the coarse fraction could lift nickel head grade by about 10 per cent and reduce acid-consuming elements. A geometallurgical model is being developed with ERM. The flowsheet covers high-pressure acid leaching, neutralisation, counter-current decantation, impurity removal and mixed hydroxide precipitation.

Partnerships and other projects

Nico signed a non-binding memorandum of understanding with Pure Battery Technologies in the June quarter to assess producing mixed hydroxide precipitate from Wingellina and refining it into precursor cathode material. Discussions continued, but no definitive agreements were reached. The company also continued a review of greenfields exploration in the Musgraves region, planning at the Lewis calcrete prospect and planning for water bores in the Cobb Embayment. Tenement holdings were unchanged, and no reportable safety incidents occurred.

Cash and next steps

Cash at 30 September 2026 was A$4.318 million, compared with A$4.861 million at 1 July. Operating cash flow was an outflow of A$181,000, after staff costs of A$262,000, administration costs of A$198,000, interest income of A$76,000 and rent income of A$203,000. Exploration and evaluation spending was A$362,000, and there was no financing activity. The Appendix 5B showed an estimated funding runway of 7.95 quarters. The announcement gives related party payments of A$113,666, while Appendix 5B item 6.1 shows A$125,000, a difference the figures do not reconcile.

For the December quarter, Nico plans to complete the infill drilling and receive assays, continue its metallurgical review, advance the geometallurgical model and definitive feasibility study scope, and progress government, community and Ngaanyatjarra Council engagement. The report contains forward-looking statements that carry significant uncertainty.

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