Nico Resources Launches 6,000m Infill Drill Program to Upgrade Wingellina Resource
Key Takeaways
- Nico Resources has commenced a 94-hole, 6,062-metre RC infill drilling program at Wingellina, with contractor Stark Drilling now on site targeting the South Domain.
- The program is designed to convert the project's 164.1Mt of Indicated Resources (1,531Kt contained nickel, 98Kt contained cobalt) to the higher-confidence Measured classification required for final investment decision-making.
- Downhole density measurements will be collected across at least 10–15% of RC holes — a specific ERM recommendation critical to achieving Indicated-to-Measured conversion under JORC standards.
- Wingellina's 2022 PFS confirmed a 168.4Mt Probable Reserve capable of producing approximately 40,000t of nickel and 3,000t of cobalt annually as MHP over a mine life of at least 42 years.
- Phase 1 is the first step in a long upgrade journey — approximately 200,000 metres of additional RC drilling is ultimately required to convert the full deposit to Measured classification at 25 x 25m spacing.
Nico Resources has commenced reverse circulation (RC) infill drilling at the Wingellina Nickel-Cobalt Project in Western Australia. The 6,000-metre program across 94 RC holes is designed to convert Indicated Resources to Measured classification, increasing geological certainty and supporting more effective mine and process planning. Drilling contractor Stark Drilling is now on site at the project, located in the Musgrave Ranges approximately 100km east of BHP’s West Musgrave Project.
Inside the Phase 1 drilling program
Phase 1 targets the South Domain of the orebody as part of a strategically phased approach to upgrading resource confidence across the deposit. The program delivers two critical data streams: infill drilling to tighten the geological model, and downhole density measurements to improve local tonnage estimates.
Program specifics:
- 94 RC drillholes for 6,062 metres of drilling
- Phase 1 aims to create a staggered 50 x 25m grid across main mineralisation in the South Domain
- Objective: define contacts between mineralised ultramafic and largely unmineralised gabbro
- Downhole density data to be collected on at least 10–15% of RC holes (as recommended by ERM) to support Indicated-to-Measured conversion
The density data matters because it provides better local tonnage estimates — critical for upgrading resource confidence. Without representative density measurements across different rock types and depths, the geological model remains less certain, which keeps resources in the Indicated category rather than Measured.
Jonathan Shellabear, Managing Director
“Nico is very pleased to be on the ground progressing development of the Wingellina project. Wingellina is world class in terms of size, grade, and ore quality, and remains one of last major undeveloped oxide-type nickel-cobalt deposits in the world outside of Indonesia. The RC drilling program in progress is the beginning of a staged approach to infilling the deposit areas which will facilitate the conversion of these areas to Measured Resources and facilitate more effective mine and process planning.”
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Why the resource upgrade matters
JORC resource classification sits on a confidence hierarchy: Inferred → Indicated → Measured. Each step up the ladder requires tighter drill spacing, more density data, and greater geological certainty. Inferred Resources reflect lower-confidence estimates based on limited sampling. Indicated Resources require reasonable confidence in continuity and grade. Measured Resources demand the highest level of geological certainty, supported by detailed sampling and structural understanding.
Moving resources from Indicated to Measured allows mining engineers to plan with precision. You can model pit designs, waste-to-ore ratios, and processing schedules with confidence because the geology is defined tightly enough to reduce material uncertainty. That reduces development risk and positions the project closer to a final investment decision.
The current resource base sits predominantly in the Indicated category, with room to upgrade confidence through systematic infill drilling.
| Classification | Tonnes (Mt) | Ni (%) | Ni metal (Kt) | Co (%) | Co metal (Kt) |
|---|---|---|---|---|---|
| Indicated | 164.1 | 0.93 | 1,531 | 0.06 | 98 |
| Inferred | 23.3 | 0.72 | 166 | 0.03 | 7.3 |
| Total | 187.3 | 0.91 | 1,698 | 0.06 | 106 |
Note: 2024 Wingellina Mineral Resource Estimate at 0.4% Ni cut-off. Heritage exclusion areas have been excluded. Minor discrepancies may occur due to rounding.
The drilling now underway is the first step in that upgrade journey. It targets the South Domain first, with approximately 200,000 metres of additional RC drilling ultimately required to drill the full deposit to a nominal 25 x 25m spacing — sufficient to convert all resources to Measured classification.
A Tier 1 asset with a long development runway
Wingellina’s fundamentals position it as a strategically significant Western supply source of battery metals. The December 2022 Pre-Feasibility Study (PFS) confirmed the project’s scale and longevity, with the asset capable of delivering decades of production from a single resource.
Headline credentials:
- Probable Reserve of 168.4Mt at 0.93% Ni & 0.07% Co for 1.56Mt contained nickel and 123Kt contained cobalt
- Capable of producing approximately 40,000t nickel and 3,000t cobalt annually as Mixed Hydroxide Precipicate (MHP)
- Mine life of at least 42 years
- Characterised by long life, low cost and high operating margins (per PFS)
The scale and grade combination places Wingellina among the last major undeveloped oxide-type nickel-cobalt deposits globally outside Indonesia. At a time when Western jurisdictions are prioritising domestic battery metal supply chains, a project with a four-decade mine life and steady annual output carries strategic value beyond its economics.
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What comes next
The full opportunity requires approximately 200,000 metres of additional RC drilling to drill the entire deposit to a nominal 25 x 25m spacing — sufficient to convert all resources to Measured. Phase 1 (South Domain) is the strategic starting point of this phased work, establishing the methodology and data collection protocols before expanding across the full resource footprint.
No assay results or density data have been disclosed yet. The program is underway, but completion timelines and results release dates have not been announced. Each phase of infill drilling incrementally de-risks a Tier 1 asset toward development readiness, moving the project closer to the level of geological certainty required for final investment decision-making.
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