Hexagon Energy Materials Ltd (ASX:HXG) is focused on progressing work plans for its McIntosh Nickel-PGE Project in the Kimberley region of Western Australia and is encouraged by recent developments at nearby projects.
As well as McIntosh and the potential new Pedirka Hydrogen Project in the Northern Territory, the company is also exploring business development opportunities.
Based on reprocessing of historical geophysical and geochemical data at McIntosh, the company has identified numerous targets prospective for nickel and platinum group element (PGE) mineralisation and is continuing to develop these targets and a fieldwork program for 2021.
The company notes that Panoramic Resources Ltd (ASX:PAN) nearby Panton PGE deposit, which is currently under offer for $15 million for 100% interest, lies immediately adjacent to Hexagon’s tenements with several PGE targets identified within similar geological units.
As well as site inspections, site activities in the past few months have included rehabilitation of recent and legacy exploration activity.
Hexagon looks forward to providing further updates as these and the prospective nickel-copper targets are further developed.
Pedirka Hydrogen Project
In early October the company signed a confidentiality agreement with Ebony Energy Limited to enable Hexagon to conduct due diligence on Ebony Energy’s Pedirka Hydrogen Project in the Northern Territory.
The Pedirka project is planned to be a zero-emission ‘blue’ hydrogen project, utilising resources from Ebony’s exploration licences in the Northern Territory, targeting domestic and international hydrogen markets.
Hexagon is well advanced on its due diligence and has formed a good understanding of the project and the next steps required to complete a pre-feasibility study.
This work will include a significant exploration drilling program seeking to establish a mineral resource estimated in accordance with the JORC code.
Transaction discussions underway
In tandem with its due diligence, Hexagon is in negotiations with Ebony Energy on the form, structure and terms of a potential transaction.
While there is strong interest from both sides to thoroughly assess the opportunity and progress towards a transaction, the result of these discussions is still undetermined.