GAL, WIN, NC1: ASX nickel stocks with good performance in 2022

Highlights

• Nickel's demand is on the rise due to the growing electric vehicle market across the world
• Recently, Galileo Mining announced the assay results of its Norseman project The pre-feasibility study of the Wingellina Project confirmed its Tier-1 status and great future potential

Nickel is the second-most abundant element in the earth’s core and its demand is on the rise due to the growing electric vehicle market across the world. As per the report of Resources and Energy, nearly 65% of nickel is used to produce stainless steel, and 15% is used for manufacturing batteries. Australia has approximately 22% of the world’s nickel resources and produces an average of more than 200,000 tonnes of nickel each year.

The export earnings of Australia from nickel are estimated to reach AU $5.1 billion in 2022-23 with a growth of 17%, as per the Resources and Energy December Quarterly Report 2022.

Amid soaring demand for nickel, let us take a look at some ASX-listed nickel stocks which have delivered high performance in the last 12 months.

Galileo Mining Ltd (ASX:GAL)

ASX-listed base metals exploration company Galileo Minerals is focused on Western Australia for discovering base metals. Currently, the company is exploring the Fraser range for large-scale magmatic nickel-copper deposits and high-grade nickel-copper-cobalt resources at the Norseman project. Galileo Mining has a joint venture with the Creasy Group in Fraser range tenements. Nova-style nickel-copper-cobalt mineralisation is being targeted in the Fraser range.

Recently, Galileo Mining announced the assay results of diamond core drilling at its wholly owned Norseman project. Drilling was done at the Callisto prospect containing palladium-platinum-gold-rhodium-nickel-copper. The assay results showed the presence of high grades of palladium, nickel and copper, which were increasing over wide intervals. The highest copper and gold grades were also found, indicating that the full potential of the project is yet to be determined.

Data: ASX as on 13 January 2023

High-grade shallow mineralisation was confirmed by metallurgical twin drill hole NRCD337. Galileo has planned to resume drilling this month to target the zones of high-grade palladium-nickel-copper located to the east of current mineralisation.

Widgie Nickel Ltd (ASX:WIN)

ASX-listed company, Widgie boasts a consolidation of about 240 sq km package of highly prospective nickel and new economy metal prospects within the prolific Eastern Goldfield nickel sulphide belt. With its current Mineral Resources of ~168,150 Ni tonnes, the company is planning to stay ready for production by the end of 2023.

Recently, Widgie received assay results from 8 RC holes from a 18-hole program at the Faraday Lithium prospect. Lithium bearing pegmatite extending under a 600m surface outcrop of 25m width has been identified after drilling completed on a 40m x 40m spacing over ~175m of strike. The drill results show the continuous presence of lithium-bearing pegmatite at a high-grade (≥ 0.8%).

Nico Resources Ltd (ASX:NC1)

Mineral exploration and development company Nico Resources Limited is focused on its Central Musgrave Project (CMP) in Western and Southern Australia. The company aims to transform the nickel industry in Australia and support sustainable growth. The Mineral Resource Estimate of CMP is nearly 2 million tonnes of nickel and 154,000 tonnes of cobalt, covering about 1,756 sq. kilometres.

Nico Resources recently announced that the pre-feasibility study for its flagship Wingellina nickel-cobalt project confirmed the status of the Tier 1 project. The project is capable of delivering nickel and cobalt for a long time with a minimum of 42 years.

Image: © Febriyanta | Megapixl.com

The project has a low cost and high operating margins with a production potential of nearly 40,000tpa contained nickel and 3,000tpa contained cobalt.  

The majority of the power requirements of the project will be met by renewable energy. The company has plans to move ahead with a Definitive Feasibility Study following the positive results of the pre-feasibility study.

The findings of the pre-feasibility study will be discussed via a conference call and webcast with shareholders and interested shareholders of the company on 17 January 2023.