ASX-listed Alliance Nickel (AXN) reports its first modern gold drilling results at the historic Australia United site, as the Company pursues earn-in partnerships and advances its flagship NiWest nickel-cobalt project.
Drilling operations underway in Western Australia’s Eastern Goldfields region. [Australian Mining]
Early Drilling Results Point to Mineral Potential in WA Tenement
Recent exploration activity in Western Australia’s Eastern Goldfields has delivered encouraging results following a drilling program at a historic mining site within Alliance Nickel Limited’s portfolio. The campaign focused on previously underexplored ground, where modern testing methods were applied for the first time in decades. Early assay outcomes indicate the presence of mineralised zones that may warrant further systematic investigation.
The Company completed an initial 10-hole reverse circulation (RC) drilling program within its Wanbanna tenement package. The results mark the first modern drilling conducted at the historically productive site.
Reverse circulation drilling marked the first modern exploration at the Australia United tenement. [Devico]
The program returned intercepts including 3 metres at 3.2 grams per tonne (g/t) gold. Mineralisation remains open along strike and at depth. These results confirm the site holds exploration potential beyond its historical record, and the company plans to build on the findings with additional work.
RC Drilling Program Returns Positive Gold Assay Results
The 10-hole RC program targeted areas of known historical gold production. This was the first modern drilling conducted on the historically high-grade mine area. The campaign aimed to assess whether the site could support a future mineral resource estimate under current JORC standards.
Grab samples from historical tailings and spoil heaps also returned positive gold grades.
These results support the broader prospectivity of the site and justify further drilling aimed at defining a JORC-compliant mineral resource. The Company now holds data from both drillhole intercepts and surface sampling, providing a more complete picture of the tenement’s gold potential.
Mineralisation Remains Open — Further Drilling Planned
A key finding from the initial campaign is that the gold system has not been fully tested. Mineralisation remains open in multiple directions. This means the current intercepts do not mark the boundary of the gold zone.
Drill core samples indicate zones of gold mineralisation across the tenement. [Yahoo Finance]
The Company views this as a basis for expanding the exploration footprint.
Alliance Nickel has confirmed plans to conduct follow-up drilling at the site. The goal is to trace the mineralisation further along strike and at depth.
The Company intends to use these results to work toward a JORC-compliant resource definition, which would form the foundation for any future development or partnership discussions.
Alliance Nickel Seeks Earn-In Partner to Fund Gold Exploration
Alliance Nickel is not planning to fund all future gold exploration from its own balance sheet. Instead, it is pursuing a third-party partnership model.
The Company is in talks with potential partners on an earn-in arrangement. Under this structure, a third party would fund additional exploration and possible mine development. Alliance would retain an ongoing economic interest through ownership, royalties, or both.
This approach allows Alliance to retain exposure to any future gold upside. It also avoids placing excessive capital demands on the company while its flagship NiWest nickel-cobalt project moves toward construction. No partner has been publicly named at this stage, and negotiations remain ongoing.
NiWest Capital Optimisation Program Runs in Parallel
While the Australia United gold results draw attention, Alliance Nickel continues to advance its core asset.
The Company launched a capital cost optimisation program at its NiWest nickel-cobalt project in Western Australia, investigating vat leaching as a potential alternative to the heap leaching configuration outlined in the project’s 2024 Definitive Feasibility Study.
Alliance Nickel continues to advance its NiWest nickel-cobalt project in Western Australia. [Bloomberg]
Water supply infrastructure represented roughly AU$310 million of the project’s capital cost under the previous heap leach configuration.
Preliminary analysis suggests that under a vat leach flowsheet, local water sourcing from the Mt Kilkenny tenement could be sufficient to support operations, potentially lowering both capital and operating costs.
Managing Director Simon Lill addressed the rationale directly, stating:
“This work is aimed at reducing the capital intensity of NiWest while maintaining the robust processing approach outlined in our DFS.”
Stellantis Offtake Talks and NASDAQ Listing Under Consideration
Alliance Nickel is managing several strategic threads alongside its exploration activities. The company remains in discussions with Stellantis over revised nickel offtake terms.
It also continues to explore a potential de-SPAC merger and NASDAQ listing, though it acknowledges that the earlier termination of a Stellantis agreement has tempered the immediate appeal of that route.
The revised terms for an offtake agreement with Stellantis were in the hands of Stellantis’ legal team as of the company’s last quarterly update. A successful resolution would reinforce NiWest’s commercial positioning as a supplier of battery-grade nickel and cobalt to the electric vehicle market.
Capital Raise Supports Ongoing Exploration and Corporate Activity
Alliance Nickel is also shoring up its balance sheet. The company launched a non-renounceable entitlement offer to raise approximately AU$4.15 million.
This supports ongoing work at NiWest and broader corporate activities. All NiWest operations recorded an incident-free period during the quarter.
The capital raise runs alongside the gold exploration push and NiWest optimisation work. It ensures the company maintains sufficient working capital to progress multiple programs without interruption.
NiWest Project Status and Production Timeline
NiWest remains Alliance Nickel’s primary development focus. The Company is preparing to commence early works construction at NiWest in 2026, with first production slated for the first half of 2029.
NiWest achieved Major Project Status in May 2024, the first nickel-based project to receive this classification since nickel was added to Australia’s Critical Minerals list.
The Definitive Feasibility Study released in November 2024 shows an after-tax NPV of AU$1.5 billion, an IRR of 17.6 percent, and a payback period of five years at an annual long-term average nickel price of US$20,216.
These figures underpin the company’s dual-track strategy, advancing NiWest toward production while unlocking value at the Australia United gold tenement through a capital-light partnership model.
Also Read: Whitehaven Coal Reports Strong NSW and Queensland Sales in March Quarter
FAQS
Q1: What did Alliance Nickel discover at the Australia United tenement?
A1: Alliance Nickel confirmed gold mineralisation at the Australia United tenement in Western Australia following a 10-hole reverse circulation drilling program. The results included intercepts such as 3 metres at 3.2 g/t gold.
Q2: Where is the Australia United tenement located?
A2: The Australia United tenement is located in Western Australia’s Eastern Goldfields region, within Alliance Nickel’s broader Wanbanna tenement package.
Q3: What type of drilling program did Alliance Nickel conduct?
A3: The Company carried out a reverse circulation (RC) drilling program, which marked the first modern drilling activity at the historically productive gold site.
Q4: What do the drilling results indicate about the gold mineralisation?
A4: The drilling results indicate that gold mineralisation remains open along strike and at depth, suggesting potential for further resource expansion with additional exploration.
Q5: Is Alliance Nickel planning more exploration at the site?
A5: Yes, Alliance Nickel plans to conduct follow-up drilling to further define the extent of the gold mineralisation and work toward a JORC-compliant mineral resource.
Q6: What is an earn-in agreement in mining?
A6: An earn-in agreement allows a third party to fund exploration or development in exchange for a stake in the project, enabling the original owner to reduce financial risk while retaining exposure.
Q7: How does this discovery relate to the NiWest project?
A7: The gold discovery provides additional exploration upside while Alliance Nickel continues to focus on advancing its flagship NiWest nickel-cobalt project toward development.
Q8: What is the significance of the NiWest project?
A8: NiWest is a large-scale nickel-cobalt project in Western Australia, with planned production targeted for 2029 and a focus on supplying materials for the battery and electric vehicle sectors.
Disclaimer
This article is published by Colitco for informational purposes only and does not constitute financial or investment advice. Information is based on publicly available sources and may not be complete or accurate. References to Alliance Nickel Limited (ASX: AXN) are not recommendations. Readers should conduct their own research and consult a licensed advisor before making investment decisions.
Sources
https://investingnews.com/best-nickel-stocks-asx/
https://alliancenickel.au/company-overview/
Last modified: April 29, 2026
