NickelSearch Ltd (ASX:NIS) has partnered with Allkem Ltd, owner and operator of the Mt Cattlin Lithium Mine, on a technical collaboration to evaluate the lithium potential at the Carlingup Nickel Sulphide Project near Ravensthorpe, Western Australia.
Under the agreement, Allkem, will review lithium-specific data from Carlingup and offer guidance on target prioritisation.
The collaboration follows a comprehensive review by Allkem of existing datasets on NickelSearch's Carlingup project, including rock chip samples, soil sampling and geophysical surveys.
As part of the collaboration, Allkem's lithium geologists will guide NickelSearch in undertaking additional rock chip and stream sediment sampling to refine high-priority lithium target areas.
Spirit of partnership
NickelSearch managing director Nicole Duncan said: “NickelSearch is excited to commence working in technical collaboration with Allkem, the owner and operator of the Mt Cattlin Lithium Mine in Ravensthorpe, located just 10 kilometres away from Carlingup.
“Given the similar geology between Mt Cattlin and Carlingup, the companies have agreed to work together to assess the lithium potential of our project.
“The exploration team at Mt Cattlin is sharing its vast technical expertise on greenfield lithium exploration and NickelSearch is sharing the data from the work completed to date.
“These discussions are based on the spirit of partnership, where success sets both companies up well to negotiate further steps in the relationship.”
The arrangement does not constitute a formal joint venture at this stage.
NickelSearch’s Carlingup project is just 10 kilometres away from Allkem’s Mt Cattlin Lithium Mine, which produced some 131,000 tonnes of spodumene concentrate in fiscal year 2023.
Allkem has also recently extended the mine life of Mt Cattlin to at least 2028 via open-pit methods and has initiated studies for underground mining options.
In April 2023, NickelSearch highlighted the lithium potential at Carlingup through an independent geochemical review.
The study focused on ultra-fine soil sampling over parts of the Carlingup Trend, reporting on the assay data for lithium-caesium-tantalum (LCT) pegmatite potential. NickelSearch has also commenced an initial rock chip sampling program over areas already cleared for exploration.
Next steps
The two companies have established a confidentiality agreement for sharing current results and future developments.
Allkem will review geochemical results specific to the Carlingup area and provide advice on targeting for the ongoing rock chip sampling program. Following this advice, NickelSearch will execute a stream sediment sampling program across Carlingup.