Knights Bay Advancing Nickel Exploration: Key Opportunities for Investors in Oman’s Mining Sector
MUSCAT: UK-based Knights Bay Minerals (KBM) has announced significant advancements in its nickel exploration efforts at Block 21 in Oman, moving closer to establishing the first nickel pilot plant in the Sultanate. This development is pivotal for defining a code-compliant mineral resource and propelling Oman’s initiatives in developing its strategic minerals sector.
Despite challenging summer conditions, KBM’s geological team successfully completed 12 diamond (HQ) boreholes within a systematic 100m x 100m drilling grid, as part of a comprehensive 33-hole program in the Central Saaqa area. This work aims to accurately define a JORC- or NI 43-101-compliant mineral resource for the laterite-hosted nickel deposit. The average thickness of the ore body recorded so far is 29.4 metres, with an upper lateritic layer measuring approximately 11 metres.
According to KBM, these findings support earlier estimates of around 79 million tonnes of code-compliant resources. The company anticipates that incorporating the new drilling data will increase its measured and indicated resources to about 107.3 million tonnes by the end of 2024. A total of 103 samples have already been submitted for assay, with over 200 core samples prepared for analytical testing.
Preliminary results have shown promise. Twelve earlier grab samples of magnetically altered lateritic sediment yielded average grades of 0.88% nickel, 40% iron, 440 parts per million cobalt, and 2% chromium—all exceeding KBM’s internal cut-off grade of 0.7% nickel. Additionally, high magnesium levels have been noted, aligning with regional geological expectations.
KBM stated, “While there may be some weathering effects influencing grades near the surface, these results continue to validate our model for a large-scale, high-grade nickel laterite system in Oman.”
The company is also conducting beneficiation and refining tests with international laboratories, including SGS and ERIEZ, to optimize ore recovery and processing methods. Initial magnetic separation tests yielded results that were “too strong,” prompting a recalibration of equipment to reduce magnetic forces to between 600 and 800 gauss.
In a separate series of tests, nine composite samples from various areas within Block 21—including Shannah, Ibra, East Ibra, and Central Saaqa—achieved direct nickel recoveries between 90% and 95%, with one altered magnetic lateritic sample showing around 45%. KBM described these outcomes as “outstanding,” enhancing confidence in the metallurgical potential of Omani laterites.
The next phase of the project involves sending a 25-tonne bulk sample for pilot-scale refining, which is expected to yield approximately 250 kilograms of mixed hydroxide precipitate (MHP) or metal, contingent on the availability of an electrowinning circuit.
If successful, this pilot initiative could lead to the establishment of a commercial-scale facility, positioning Oman as a future player in the regional nickel value chain amid rising global demand for battery minerals.
Knights Bay Minerals began exploratory drilling at Block 21 in 2023 after acquiring rights over a 1,200-square-kilometre concession. This project aligns with Oman’s national strategy to diversify its economy through the sustainable development of its mining and minerals industries, particularly focusing on critical minerals such as nickel, cobalt, and chromium.
Special Analysis by Omanet | Navigate Oman’s Market
The recent advancements by Knights Bay Minerals in nickel exploration signify a transformative opportunity for Oman’s strategic minerals sector. As Oman aims to diversify its economy, the establishment of the first nickel pilot plant could attract investments and innovations in mining technologies, making it a central player in the growing battery minerals market. Smart investors should closely monitor this development, as the project’s success may lead to increased demand for local mining services and infrastructure, presenting both opportunities and competitive risks for businesses in related sectors.
