NickelX (ASX:NKL) expands gold exploration portfolio with strategic acquisition of Penny South Gold Project

NickelX (ASX:NKL) has announced a significant expansion of its West Australian gold exploration portfolio through the acquisition of the Penny South Gold Project, located in a renowned gold district just 550 meters south of Ramelius Resources’ Penny West/North Gold Mine.

This acquisition positions NickelX strategically in proximity to one of Australia’s highest-grade gold mines and is set to bolster the company’s exploration efforts in the region.

Key Highlights:

• NickelX has entered into a binding Tenement Sale Agreement to acquire 100% of the Penny South Gold Project (E57/1045).
• The project is strategically located in a world-class gold district, with the Penny West mine historically producing 154,000 tonnes at an impressive 18g/t Au.
• The Penny South project area includes a 2.5 km extension of the Penny West Shear, the structure that hosts the high-grade Penny deposits.
• Historical drilling at Penny South has revealed several anomalous intersections of gold mineralisation, though the area remains underexplored, with most drilling averaging only 42 meters in depth and no diamond drilling conducted to date.

The Penny South Gold Project is situated at the southern end of the Youanmi Greenstone Belt, a region known for its rich gold deposits. The project covers 9.95 km² and is characterised by limited outcrop, with prospective bedrock obscured by up to 30 meters of windblown sand and other sediments.

Despite extensive historical drilling, much of the area remains underexplored, particularly at greater depths where significant gold mineralisation may exist.

Commenting on the acquisition, NickelX Managing Director Peter Woods stated, “We are extremely pleased to have reached an agreement for the acquisition of the Penny South Project.

The addition of this exciting gold exploration asset next door to one of the highest-grade gold mines in production in Western Australia, and in a district seeing current M&A activity, greatly enhances our existing portfolio.

Given the minimal deeper drilling and lack of diamond drilling, it is the Company’s view there may be substantial value to be unlocked at depth and we are eager to execute a path forward to test the theory as the momentum for gold continues.”

Next Steps: NickelX plans to immediately commence a comprehensive review of all available geological, geochemical, and historical drill hole data to define high-priority drilling targets, particularly at depths greater than 80 meters below the surface.

The company also intends to explore the potential of using electrical geophysics, such as Induced Polarisation (IP) and Electromagnetics (EM), to detect Penny-style quartz-sulphide lodes.

The acquisition terms include an upfront payment of A$60,000 in cash and the issuance of 3 million shares at a deemed price of $0.02 per share, with additional deferred cash considerations linked to future gold resource discoveries.

Completion of the acquisition is subject to shareholder approval and customary third-party approvals.

This strategic acquisition not only enhances NickelX’s exploration portfolio but also positions the company to leverage the ongoing momentum in the gold market.

With a focus on unlocking value at depth, the Penny South Gold Project offers significant potential for the discovery of new high-grade gold resources, further solidifying NickelX’s presence in one of Australia’s premier gold districts

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