Mining has started at Lunnon Metals‘ (ASX:LM8) Kambalda Gold and Nickel Project, 50km southeast of Kalgoorlie.
Lunnon Metals has unveiled its first mineral resource estimate for the Hustler gold deposit at a combined 682,000 tonnes of 1.4 gram per tonne (g/t) gold at a 0.5g/t gold cut-off grade. This is expected to be refined into 30,200 gold ounces, which is touted to bring “positive” cash flow.
“This success puts the company on the verge of positive free cash flow, cash flows that will greatly strengthen its balance sheet and position it to aggressively explore and develop not only its own gold (and nickel) portfolio but also consider opportunities in the wider district over the longer term,” Managing Director Edmund Ainscough says.
“These significant milestones have all been achieved against the backdrop of a steadily increasing gold price that … sits at near record highs [and is] now also buoyed by early signs of an improvement in not just nickel sentiment but [also] nickel prices,” Ainscough adds.
Geological studies show narrow stacked lenses within an upper and lower zone, both dipping gently northwest at the Hustler deposit. Drilled widths will be about the true width of the intersected gold mineralisation.
Lunnon Metals samples have been submitted to Intertek Genalysis for sample preparation. The company has also used Chrysos‘ PhotonAssay gold analysis technology.
Deposit wireframes are modelled through drillhole interval selection and vein modelling with Leapfrog Geo’s three dimensional geological modelling program.
Lunnon Metals also plans to perform a scoping study to investigate potential to mine the Hustler deposit. There is potential for further closer spaced drilling, depending on whether optimisation results are positive.
Scoping study results will also investigate the potential to mine Hustler and any further open pit mining stages at the Lady Herial deposit.
Lunnon Metals is a gold and nickel exploration company with assets east of Perth, mostly in Western Australia’s Goldfields region.
Write to Richard Szabo at Mining.com.au
Images: Lunnon Metals
