Nickel Industries has announced a significant resource upgrade at its Sampala Project, with an updated JORC Resource of 1,095 million wet metric tonnes grading 1.24% nickel and 0.09% cobalt. This estimate encompasses 8 million tonnes of nickel metal and 583,000 tonnes of cobalt, derived from 4,308 drilling holes totalling 112,588 metres across the combined ANN and ETL mining concessions. The company acquired binding agreements for the Sampala Project in September 2024, and this latest resource statement represents a major milestone in developing what has become one of the company’s most valuable assets.
The scale of the Sampala resource positions it as one of the largest nickel deposits globally and dwarfs Nickel Industries’ existing Hengjaya Mine resource in comparison. Managing Director Justin Werner highlighted that the deposit contains substantial upside potential, with further resource upgrades possible from the GF concession, where 167 drilling holes have been completed but results remain pending. The company is well positioned to move quickly toward development given its early acquisition secured with a deferred final payment of US$144 million due April 2027 for the 60% interest in the ANN concession.
A particularly attractive feature of the Sampala deposit is its high-grade saprolite component, estimated at approximately 180 million wet metric tonnes grading 1.6% nickel. This is economically significant given current market conditions, where saprolite material grading at 1.6% nickel commands approximately US$58 per wet metric tonne. The presence of this high-margin ore component supports the company’s strategy to secure ore supplies for its existing rotary kiln electric furnace and high-pressure acid leach operations.
Development momentum appears strong, with 8 kilometres of the required 24-kilometre haul road connecting Sampala to the company’s existing operations in the Indonesia Morowali Industrial Park already 90% complete. The company has also recently signed a memorandum of understanding to source up to 14 million wet metric tonnes of limonite ore via a slurry pipeline from a nearby HPAL facility. These arrangements underscore management’s vision of establishing Nickel Industries as one of Indonesia’s largest nickel resource holders while ensuring long-term ore security and self-sufficiency in feedstock supply.
Investors should monitor the completion and results from the GF concession drilling, which will provide further visibility on the total resource base. The completion of the haul road and the commencement of ore haulage will be critical operational milestones. The timing and financial impact of the final US$144 million acquisition payment in April 2027 will also warrant attention. This announcement is price sensitive and has been flagged by the ASX as material to shareholders.
View the full ASX announcement (PDF)
About Nickel Industries Limited (ASX: NIC)
Nickel Industries Limited is an ASX-listed mining company that owns and operates a portfolio of nickel mining and downstream processing assets located primarily in Indonesia. The company produces nickel through high pressure acid leach (HPAL) technology and rotary kiln electric furnace (RKEF) projects, supplying nickel for stainless steel production and the electric vehicle supply chain.
If you would like to discuss this announcement or how it might affect your portfolio, request a callback or call us on 1300 889 603.
