Mineral resource exploration company Lunnon Metals (ASX:LM8) reports it has added 79,300 tonnes of nickel (Ni) metal to the Mineral Resource Estimate (MRE) for the Baker deposit, located within the Kambalda Nickel Project in Western Australia.
The company says the new MRE for Baker now stands at 929,000 tonnes @ 3.3% Ni for 30,800 contained tonnes of nickel comprising 638,000 tonnes at 3.8% Ni for 24,000 in Indicated resource, and 291,000 tonnes @ 2.3% Ni for 6,800 in Inferred resource.
This result increases the global MRE for Kambalda to 2.6Mt @ 3.1% Ni for 79,300 contained tonnes, which Lunnon says is a 23% increase in contained metal since June, and an increase of 103% since the company listed in June 2021.
The company has also posted a significant increase in its share price on the ASX, rising 12.95% to $0.920 as of 11:30am AWST.
Lunnon Metals Managing Director Ed Ainscough says: I couldn’t be happier for everyone at site that has worked so diligently and safely, pushing Baker as quickly as possible to this point.
“To think there was over 30,000 tonnes of nickel metal sitting within 300m of the surface at Baker is a little hard to believe looking back to when we listed”
To think there was over 30,000 tonnes of nickel metal sitting within 300m of the surface at Baker is a little hard to believe looking back to when we listed, but it was there, we have found it… it is high-grade and it is so close to the existing infrastructure and local processing capacity, it simply could not have been in a better location.
Again, I want to thankAaron Wehrle and his team, at site and in Perth, and also Blue Spec Drilling. Baker sets the company up for even greater success and 2023 is going to be an exciting and extremely busy year as we strive to advance Baker and Foster towards production, whilst we also turn our minds to the significant opportunities at Silver Lake and Fisher.”
Lunnon highlights that the recent ‘aggressive’ drilling campaign has provided sufficient additional data to support a higher total tonnage classified as indicated resource within the MRE up nearly threefold from June this year, and a resultant ‘higher’ proportion of Indicated resources compared to the lower confidence category of Inferred resource. The grade of this indicated resource has also improved by 37% to 3.8% Ni.
The company reports the inferred resource presents an opportunity for select infill drilling seeking to grow the indicated resource further, however whilst the Baker Deposit is still open down plunge to the southeast beyond the limits of the inferred resource.
Advancing the technical and mine design studies are now the priority for Lunnon with the down plunge potential able to be targeted more accurately and efficiently from the potential future underground development should it proceed.
The updated MRE also positions the company to fast-track Baker by commencing mine design and scheduling in the March 2023 quarter. It also notes metallurgical and geotechnical studies have been ongoing as the drilling program and MRE update progressed.
Coupled with ‘significant’ development advancement on the permitting front, Lunnon reports it is well placed to continue reporting the progress of Baker throughout 2023 towards a potential Final Investment Decision (FID).
As previously reported, in parallel to rapidly advancing Baker, the company is progressing permitting activities to dewater Foster and possibly use neighbouring infrastructure at Baker, such as the West Indough open pit, waste dumps and dewatering corridors.
Lunnon Minerals is a mineral resource company that wholly owns the Kambalda Nickel Project located near Kalgoorlie in Western Australia. The project comprises the Foster Nickel Mine, the Baker Shoot, the Silver Lake Mine, the Jan Shaft and the Fisher Nickel Mine.
Images: Lunnon Metals Ltd & iStock
