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Critical metals explorer Leeuwin Metals Ltd (Leeuwin or the Company) (ASX: LM1) is pleased announce an update on the progress of drilling activities at the Company’s 100% owned William Lake Nickel Project (William Lake) in Manitoba, Canada.
HIGHLIGHTS
- Confirmation of significant nickel sulphide mineralisation in all drill holes solidifies William Lake as a major nickel system within the world-class Thompson nickel belt
- Drilling to date has intersected multiple zones of massive sulphide and disseminated nickel sulphide mineralisation
- Significant intercept from hole WL23-367, at the W56 target:
- 1.4m massive to semi massive sulphide zone with spot pXRF of 5% Ni within 24m zone of disseminated nickeliferous sulphides from 227.2m
- 1.4m massive to semi massive sulphide zone with spot pXRF of 5% Ni within 24m zone of disseminated nickeliferous sulphides from 227.2m
- Drilling is ongoing, with 8 holes completed, totalling ~4,000m; priority assays expected in coming weeks
- Untested geophysical anomalies have been identified through down hole electromagnetic (DHEM) surveys at the high-priority prospects of W21 and W56
- Highly encouraging mineralisation intercepted in all drill holes extending zones beyond the historic nickel sulphide intercepts
- Completion of on-site visit by Glencore technical committee
Managing Director, Christopher Piggott, commented:
“The results from our first drill program confirms that William Lake is a significant nickel system within the world-class Thompson nickel belt. Drilling has intersected nickel sulphides in all holes to date affirming the presence of significant mineralisation.
This successful start to our exploration program has not only confirmed the accuracy of our existing geological model but has also showcased the immense scale of the project. The utilisation of drilling and DHEM techniques has further reinforced the view that our project represents a significant nickel system. Given the desirability of high-grade Class 1 nickel deposits in the context of the green energy transition, Leeuwin is in an ideal position to capitalise on this opportunity at William Lake.
Additionally, we extend our gratitude to the Glencore technical committee personnel for their attendance during the project site visit. Their presence and input are greatly appreciated.
We look forward to updating the market in the coming weeks, as we receive results from our assays.”
Figure 1: W56 prospect - WL23-367 Massive Sulphides at 227.2m and net texture sulphides at 248.5m.
Figure 2: W21 prospect - WL23-370 Stringer Sulphides from 400m including a 30cm zone of semi massive sulphides - left (90% pyrrhotite, 10% pentlandite).
Initial Drilling and DHEM
The Company’s maiden drill program continues to be a success, providing confirmation of the geological model, and identifying extensive areas of pentlandite-rich massive to disseminated sulphides. The drilling has been focused on extending known high-grade nickel mineralisation at the W56 and W21 prospects through +100m step-out drill holes. The results support the interpreted continuity of mineralisation and provides further geological information to enable targeting of higher grade zones. Assays for all holes are currently pending, but we expect results to be available in the coming weeks. See Table 2 of Appendix A for a summary of significant visual intercepts.
Initial DHEM testing at W21 has identified a large conductor measuring 200m x 60m, which coincides with higher grades of nickel mineralisation in historical drilling. We anticipate the results of further surveys are anticipated shortly, providing additional insights into the deposit.
W56 Prospect - Summary of Results
Four holes, totalling ~2,100m of diamond drilling, have been completed at the W56 target, which is a large-scale prospect. Historical data indicates a continuity of high tenor nickel sulphides along a trend of over 2km. Leeuwin’s maiden drill program was specifically designed to target interpreted high-grade shoots. All four holes have intersected nickeliferous sulphides within the target horizon, effectively extending the mineralisation along strike and up-dip from historical intercepts (refer to Appendix B Table 1 for details).
To the northwest of the W56 target, drill hole WL23-367 has intercepted a zone of 1.4m of massive to semi-massive sulphides (50% pyrrhotite, 20% pyrite and 5% pentlandite) at a depth of 227.2m. This sulphide zone is part of a broader 24m interval containing disseminated and net-textured nickeliferous sulphides, from 227.2m (15% pyrrhotite and 1% pentlandite) (refer Figure 1). Portable X- ray Fluorescence (pXRF) spot readings within the semi-massive sulphide zone at 227.5m ranged from 0.9% Ni up to 5% Ni, while concentrations of net to heavy disseminated sulphides within the wider interval exhibited spot pXRF readings ranging from 0.5% Ni up to 3% Ni.
Hole WL23-367 is a 180m up dip extension to high-grade nickel mineralisation intercepted in WL96- 168, where a historical result of 7.83m @ 1.73% Ni from 572m was obtained in the main target horizon (refer to historical results in the Company's Prospectus on the ASX, dated 28/03/2023).
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This article includes content from Leeuwin Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Nickel Price Update: Q2 2025 in Review
Nickel prices sink to 2020 lows
Nickel prices crashed at the start of Q2, falling to a five year low and reaching US$14,150 on April 8. However, the metal quickly recovered from the rout and reached US$15,880 on April 24.
The end of April saw nickel retreat to US$15,230. Prices were largely rangebound through May, rising to US$15,850 on May 9 before collapsing again to US$15,085 on May 27.
Nickel price, April 1 to July 24, 2025.
Chart via TradingEconomics.
Nickel had a short-lived rebound to US$15,510 on June 2 before falling to below the US$15,000 mark to reach US$14,840 on June 24. Since then, prices have experienced some upward momentum, reaching US$15,575 on July 23.
Supply surplus causing nickel price pressure
In a presentation at the Indonesian Mining Conference on June 30, Ricardo Ferreira, director of market research and statistics at the International Nickel Study Group (INSG), outlined the current state of the nickel market.
He suggested that high output from Indonesian miners has continued to exert downward pressure on nickel over the last several years, resulting in a decline from an average price of US$30,425 in 2022 to an average of US$15,000 during the first five months of 2025. Meanwhile, combined inventories on the London Metal Exchange and Shanghai Futures Exchange have exploded from 38,200 MT at the end of May 2023 to 230,600 MT at the end of April 2025.
This coincides with a 15.1 percent increase in global nickel production in 2023 and a 2.3 percent increase in 2024. The expectation is that nickel output will surge an additional 8.5 percent in 2025, with a significant portion to come from Indonesia, whose share is forecast to grow to 63.4 percent from 61.6 percent in the previous year.
Nickel demand not keeping up with supply
Demand has not kept pace with the increase in production. Ferreira stated that nickel demand increased by 7.8 percent in 2023 and 4.8 percent in 2024, and is expected to grow by 5.7 percent in 2025.
Stainless steel has been the primary driver of nickel demand for decades. Still, Olivier Masson, principal analyst for battery raw materials at Fastmarkets, predicts a changing demand landscape over the next couple of years.
At Fastmarkets' 2025 Lithium Supply & Battery Raw Materials conference in June, Masson provided insight into why he believes the current oversupply situation will begin to shift by 2027.
Currently, nickel’s primary demand driver is in the production of stainless steel, accounting for just over 2 million MT per year. However, the expectation is that between now and 2035, total demand for nickel will increase by 2 million tons, with stainless production accounting for just 564,000 MT — that's a CAGR of 2 percent.
“We expect to see more end-of-life scrap being generated within China, and then that should start slowing down the growth requirements for primary nickel in the Chinese stainless-steel industry,” Masson explained.
The remaining demand is predicted to come from a 12.8 percent, or 1.4 million MT, increase from the EV sector.
“Most of this growth will come from pure EV, so pure battery EVs, where we expect sales growth of over 30 million vehicles … But we still expect an increase in plug-in hybrids with an additional 11.5 million vehicle sales over the next decade,” Masson said. The expert went on to say that over that time, supply is expected to grow at a slower rate, with the majority owed to increases in nickel sulfate destined for battery manufacturing.
“What does that mean for the balance for the nickel market? Well, the nickel market has been oversupplied for the past couple of years. We expect that to continue this year and for the next few years," Masson explained.
"We are in a state of structural oversupply. That said, it's only by around 2027 or 2028 that we think the market will start to return to a semblance of balance," he added. Looking to the long term, Masson stated that an additional 750,000 MT will be needed by 2035, which he doesn’t see as a significant problem.
Nickel producers still curtailing output
With the nickel market currently experiencing a supply glut, more producers have taken to curtailing production or shuttering operations. Since 2024, there have been closures of significant operations, including First Quantum Minerals' (TSX:FM,OTC:FQVLF) Ravensthorpe, Panoramic Resources’ Savannah operations in Australia and major miner Glencore's (LSE:GLEN) Koniambo nickel mine in New Caledonia.
Likewise, refiners have been under pressure. BHP (ASX:BHP,NYSE:BHP,LSE:BHP,OTC:BHPLF) has suspended operations at its Nickel West refinery in Australia until 2027, and Sibanye Stillwater (NYSE:SBSW) repurposed its Sandouville nickel refinery in France to produce precursor cathode active material during the first half of 2025.
According to INSG data, 32 percent of global nickel production lines are currently offline.
One of the few companies to buck the trend was Vale (NYSE:VALE), which announced a 44 percent year-on-year increase in nickel production in its Q2 report, released on July 22.
Its nickel output rose to 40,300 MT from 27,900 MT during the same quarter last year. The company said gains were driven by strong performance from its Canadian assets and the Onca Puma mine in Brazil.
While there was some speculation that Indonesia may reduce its output, no cuts have materialized, which has in part led Australian investment bank Macquarie Group (ASX:MQG) to downgrade its nickel outlook to US$14,500 by the end of the year; that's in contrast to the US$15,500 it predicted at the end of Q1.
How are trade tensions impacting nickel?
Base metals were caught up in the fallout from US President Donald Trump’s “Liberation Day” announcement on April 2. The administration applied a 10 percent across-the-board baseline tariff to all but a handful of countries, and left open the possibility of more significant retaliatory tariffs starting on April 9.
However, a steep US$6.6 trillion selloff in equity markets and a squeeze in the bond market that sent yields for 10 year Treasuries up more than half a percent caused the US administration to walk back its plans. Instead, it announced a 90 day pause on the higher tariff rate and stated that it would work to negotiate new trade agreements.
The commodity price rout came as more analysts began to speculate about a recession later in 2025, which would reduce consumer spending on steel-dependent goods, such as light vehicles and new home builds.
Naditha Manubag, associate research analyst of metals and mining research at S&P Global, has suggested that nickel is likely to experience headwinds from the evolving trade policy in the US.
“We expect nickel prices to remain volatile in the near term as the Trump administration’s trade policies continue to evolve. Forecast for 2025 global primary nickel demand is lowered to 2.8 percent year-on-year due to the expected slowdown in global economic activity,” she said during her firm's State of the Market: Mining Q1’ 25 webinar on May 14.
Manubag said the slowdown would have a negative impact on demand for Chinese consumer goods, which would come alongside a rising Indonesian mining quota in 2025. Although prices spiked in March, she explained that it was due to tight supplies from the rainy season and increased royalty rates.
Manubag suggested that S&P’s overall expectation is that the nickel market will be in a surplus of 198,000 MT in 2025. As a result, the organization has lowered its nickel price forecast to US$15,730.
It’s more than just US tariffs that are expected to weigh on nickel prices in the short term. When Trump signed the One Big Beautiful Bill into law on July 4, it marked an end to the federal EV tax credit and other tax credits aimed at expanding charging infrastructure, a cornerstone of the Inflation Reduction Act.
The consumer credit was meant to provide a US$7,500 rebate toward the purchase of new EVs, and is expected to have an impact on overall demand when it expires on September 30. Although the majority of nickel demand comes from the production of stainless steel, the growing demand from EV battery production has provided additional tailwinds; however, a decline in EV demand could impact future demand growth.
“If and when this bill is passed, a slowdown of EV uptake is expected to lead to higher EV prices and slower rollout of charging infrastructure,” Manubag said.
Nickel price forecast for 2025
Currently, the easiest way to sum up the nickel market is that it's widely disliked. The fundamentals aren’t there, and a significant portion of nickel is being produced at a loss.
In an interview with the Investing News Network on July 20, Steve Barton, host of the "In It To Win It" podcast, suggested that while investors have avoided nickel, there may still be opportunities in the sector.
“You know, nickel is hated right now. I think there’s a decent case for nickel, just like when we went into platinum, right? Platinum did nothing for a decade; it just hung around US$900 to US$1,000 (per ounce), and now we’ve finally broken out … You have no idea when, but buy it when it’s boring. At US$900, no one cares, and then you get to ride the wave up. So I think that would be it. Pay attention to what’s unloved and hated and buy that,” he said.
Others in the investment community have expressed a similar sentiment. Although fundamentals for nickel are currently lacklustre, demand, especially from the automotive sector, is expected to grow over the next 10 years.
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Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
FPX Nickel Completes Production Run of Battery-Grade Nickel Sulphate to Support Discussions with Prospective EV Battery Supply Chain Partners
Overview
As described in the Company's October 15, 2024 news release, FPX completed a pilot-scale refining test program to advance the technical maturity of refining the Baptiste awaruite concentrate to nickel sulphate. This test program included continuous, pilot-scale leaching to produce low-impurity leach solution. A small portion of the leach solution was further advanced through purification and crystallization operations to nickel sulphate crystals to demonstrate the technical viability of the purification process. The remainder of leach solution was retained for future testing including continuous, pilot-scale processing of the purification and crystallization area, ensuring the final refinery strategy is supported by purification and crystallization requirements defined in collaboration with FPX Nickel's current and prospective downstream partners.
FPX recently re-engaged Sherritt Technologies Ltd. to conduct an additional nickel sulphate production run, building on Sherritt's successful completion of the previous pilot-scale refining test program. In the current testing campaign, a portion of this remaining leach solution has been processed to produce larger quantities of nickel sulphate crystals. As with previous testing campaigns, the quality of the produced nickel sulphate, presented in Table 1, meets the strict target specifications for battery applications. To further advance the produced qualification process, the nickel sulphate samples will be provided to prospective downstream partners to ensure the quality and suitability of the nickel sulphate for their battery manufacturing process. Figure 1 shows a portion of the nickel sulphate samples produced.
Table 2 – Baptiste Nickel Sulphate Crystal Quality vs. Target Specification
Qualified Person
The metallurgical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101: Standards of Disclosures for Minerals Projects of the Canadian Securities Administrators ("NI 43-101"). Testwork was supervised, reviewed, and verified by Kyle D. Marte, P.Eng., FPX Nickel's Director of Metallurgy and a "Qualified Person" as defined by NI 43-101.
About the Baptiste Nickel Project
The Company's Baptiste Nickel Project represents a large-scale greenfield discovery of nickel mineralization in the form of a sulphur-free, nickel-iron mineral called awaruite (Ni3Fe) hosted in an ultramafic/ophiolite complex. The absence of sulphur and our ability to connect to the BC Hydro grid means that Baptiste has the potential to be one of the lowest carbon-intensive nickel producers in the world and will produce a very high-grade product that does not require any intermediate smelting or complex refining. The Baptiste mineral claims cover an area of 453 km2 west of Middle River and north of Trembleur Lake, in central British Columbia. In addition to the Baptiste Deposit itself, awaruite mineralization has been confirmed through drilling at several target areas within the same claims package, most notably at the Van Target which is located 6 km to the north of the Baptiste Deposit. Since 2010, approximately US$55 million has been spent on the exploration and development of Baptiste.
FPX has conducted mineral exploration activities to date subject to the conditions of agreements with First Nations and keyoh holders.
About FPX Nickel Corp.
FPX Nickel Corp. is focused on the exploration and development of the Decar Nickel District, located in central British Columbia, and other occurrences of the same unique style of naturally occurring nickel-iron alloy mineralization known as awaruite. For more information, please view the Company's website at https://fpxnickel.com/.
On behalf of FPX Nickel Corp.
"Martin Turenne"
Martin Turenne, President, CEO and Director
Forward-Looking Statements
Certain of the statements made and information contained herein is considered "forward-looking information" within the meaning of applicable Canadian securities laws. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed in the Company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.