AANR Poised to exploit the Nickel Supply Cliff
As the stampede for the adoption of Li-ion batteries intensifies, Associated African Nickel Resources Ltd (“AANR”) has been growing its mining portfolio in Zimbabwe and Africa at large to satisfy the world’s growing demand for Li-Ion Battery technology.
Rudairo Mapuranga
The junior mining company has announced its intention to list on Zimbabwe US$ Denominated stock exchange, Victoria Falls Stock Exchange (VFEX) thereby attracting significant domestic capital trapped in Zimbabwe pension funds.
Li-Ion Battery technology is an essential component in the electric vehicle industry.
Reports have indicated that the Electric Vehicle rollout promises extraordinary Nickel demand growth, possibly 300-500 percent by 2040. The biggest suppliers of Nickel ore, Indonesia and the Philippines are producing expensive Nickel Oxide deposits that yield toxic waste.
AANR Chair Ben Mbanga indicated that the company and the Nation are on an expansion drive and are looking to spread their wings across the nickel value chain. This will help the company tap into the ever-growing Li-ion battery in line with the global shift towards clean energy alternatives.
“AANR is therefore focused on clean Nickel Sulphide deposits in Africa to yield traceable, sustainable EV-Battery Grade Nickel Sulphate and Cobalt Sulphate (99.5% pure). This has seen the company advancing rapidly in exploring nickel and other Li-Ion Battery technology required metals to advance the world’s increasing demand for green energy, “he said.
Nickel production for AANR remains significant because for small devices and Electric Vehicles, Li-Ion Batteries are unchallenged. Within Li-Ion technology, developments continue to reduce Cobalt requirements in favour of Nickel.
AANR projects in Zimbabwe
AANR intends to Beneficiate its ore in Zimbabwe to EV Battery-Grade Nickel Sulphate + a matching quantum of EV Battery-Grade Cobalt Sulphate – all traced to the source and certified as socially and environmentally responsible. This will likely attract significant price premiums. The following are projects being carried out by AANR in Zimbabwe.
Chaka Project
AANR’s Chaka Project incorporates a 19kms strike of the Chakari Belt including the mothballed Perseverance mine (ex Rio) – which closed for safety reasons during the civil war. Historically, float-concentrate from the mine’s high-grade sulphide ore was processed at Rio’s Empress smelter facility and refinery. The resource may be open at depth and amenable to near-term re-opening. Prospectivity promised by a Thompson model offers a roadmap for discoveries in repetitions targeted along the 19kms strike.
According to the Chaka project’s significant investment to date – geophysics, geochemistry, mapping, Hydrogeological studies, drilling, dewatering etc. The project is arguably in the top 10 global nickel sulphide prospects.
Exploration rollout
Ground-based Electromagnetic Survey – 100x100m TDEM moving transmitter loop; base frequency 1Hz and Average 26Amp pulses. EM targeted at nickeliferous, gossanous outcrop, soil, radiometric, and magnetic anomalies plus off-topographic expressions of bulging serpentinite structures mimicking known ore bodies. Conductors require analysis for differentiation between previously logged graphitic, conductive black shales versus massive sulphides.
Exploration Drilling & Resource Development plans
Drill defined anomalies for proof-of-mineralisation; and Massive & disseminated Sulphide bodies were identified to be drilled out to JORC compliance.
Maddy Project
The setting of the Maddy project is within the greater Madziwa Igneous Complex with Brownfield sites and extensive potential for blind ore body discovery based on new geological understanding.
The Maddy project is one of AANR’s lead projects with the potential for early production and extensive potential for multiple virgin nickel sulphide bodies. It Is a Brownfield with >50,000 tonnes of nickel produced historically.
The float-concentration residues of this history form a 14 million tonne tailings dump. AANR has surveyed & drilled this asset. A JORC compliant Resource of ~25,000 tonnes containing Ni Metal has been declared (mostly in Indicated category). Large parts of the dump are running at 0.2% and over, with early extraction tests showing that much of this is in sulphide particles. Various techniques are being tested to upgrade the dump material to >0.4% Ni whereafter flotation to 5%+ Ni is expected to be achievable.
The Company intends to advance this project to profitable production within 18 months.
During the first quarter of 2022, Maiden JORC Resource Declared 24,923 tonnes of contained nickel metal = ~USD$1 billion gross in situ metal inventory. A feasibility study has commenced intending to test the economic viability of tailings retreatment – targeting a Reserve and Balance Sheet revaluation on discounted NPV.
A comprehensive 2015 White Paper authored by Prendergast & Wilson – arguably two of the leading geologists in their field – has essentially revolutionised the Company’s view of the Madziwa Igneous Complex and offered (indirectly) a clear roadmap to new deposit discovery. This, therefore, means that Past Geological Survey Bulletins can be largely disregarded.
AANR has conducted extensive geophysical surveys over an area of roughly 10kms x 7 kms (Magnetic survey) to assist in the identification of further anomalous zones with nickel mineralization potential. These surveys are ongoing and have yielded excellent data prompting more expensive Stage 2 Geophysics. In stage 2, Legacy data & magnetic anomalies highlighted by Stage 1 Geophysics guided a recently completed time-domain electromagnetic survey. A large conductive body was pinpointed. Qualified interpretation leads the Company to believe it represents a massive sulphide, possibly a significant virgin nickel ore body – i.e. a high-value drill target.
Empress Project
The mineralogy and geological setting of Empress Nickel mine are unusual in that it hosts relatively high Gold, Silver, Palladium, Platinum, Rhodium & Rhenium credits in addition to the expected Nickel, Copper, Cobalt. Host minerals, in order of % occurrence, are pyrrhotite, pentlandite, chalcopyrite, pyrite, violarite and chalcocite.
The ratio of Nickel to Copper is also unusual in that it is almost 50/50 @ 14:13. It has become common practice, therefore, to refer to combined base metals (“CM”) – i.e. Ni+Cu, when referring to estimated contained metals (i.e. excl Co, Au, PGM’s)
Owned and mined by Rio Tinto until 1983, Empress was both open pit & underground, with total reported production of nett 100,000 tonnes of CM (USD$1.4 billion @ today’s pricing). Cobalt and Precious metals went largely unreported.
Rock Stockpiles, slag dumps and float tailings make up some 13 million tonnes lying on the surface – likely bearing some 40,000t CM. Residual underground reserves have been professionally estimated @ 80,000t CM underground excluding lateral extensions which would require exploration & resource definition drilling.
Exploration rollout
Geophysics Surveys around old mine site to detect orebody extensions at depth and nearby; and Targeted magnetic geophysics + geochemistry on surrounding areas, subject to tenure consolidation, to identify targets for EM; and Dewatering followed by limited re-equipping then LIDAR underground survey to map voids/pillars/stopes etc, define residual extractable resource; and Subject to outcomes of above, consider merits of underground EM and drilling for extensions.
Exploration Drilling & Resource Development plans:
Underground: channel sampling + limited drilling of halo; Surface drilling of strong anomalies in lateral extensions; and All above-mineralised zones drilled out to JORC compliance.