The expected delivery of the definitive feasibility study (DFS) of the NiWest nickel/cobalt project, in Western Australia, has shifted to mid-2024, emerging battery metals producer Alliance Nickel reported on Tuesday.
This is to allow for the completion of optimisation studies and water drilling programmes.
Cost optimisation engineering across major capital and operating cost estimates is under way and international tender pricing continues for the acid plant, which is a material component of the project capital expenditure (capex).
Alliance Nickel stated that its engineering team had visited several overseas fabrication facilities to assess potential vendor capability. These meetings were positive and competitive indicative pricing had been received, which would offset cost pressures across other components of the capex estimate.
Further, the firm reported that it had completed drilling for water at its Mt Kilkenny tenements and other licensed areas. However, further water drilling programmes were required in other areas through access agreements with third parties. These programmes will run through to the first quarter of 2024.
“Unfortunately, the timing of completion for certain workstreams has impacted the timing for completion of the overall DFS. Whilst being disappointing the board considers it prudent that it takes the necessary time to ensure all aspects of the project are advanced and completed diligently and comprehensively.
“Given the ongoing advanced progress of other project workstreams, completion of the DFS next year should not have a material impact on the overall project execution schedule,” said MD and CEO Paul Kopejtka.