Mineral resource explorer Lunnon Metals (ASX:LM8) has returned improved nickel recoveries up to 95.1% and 84.4% from metallurgical testwork at its Baker deposit within its Kambalda Nickel Project in Western Australia.
The company, which has a $184.67 million market capitalisation, says these new testwork results returned from both the BOF01 and BOF02 domains add to the comprehensive metallurgical test program at Baker. They come hand-in-hand with assay results from associated diamond drilling in the area.
Lunnon reports diamond drill hole assay results include 8m @ 5.35% nickel (Ni) and 8.35m @ 2.20% Ni and, in conjunction with the improved nickel recoveries, are expected to be incorporated into an updated Mineral Resource Estimate (MRE) for Baker.
The completion of this updated PFS is expected to quantify the current view of the nickel production potential from the Kambalda Nickel Project and better position Lunnon to continue detailed negotiations with potential ore tolling and concentrate purchase partners in the immediate local area.
The MRE for Baker currently stands at 929,000 tonnes at 3.3% nickel for 30,800 contained nickel tonnes, which is inclusive of an initial ore reserve estimate of 612,000 tonnes at 2.86% Ni for 17,500 contained nickel tonnes.
Lunnon notes these results also demonstrate that Baker’s nickel shoots can produce a premium concentrate product, contain high levels of copper and cobalt by-product credits, are host to low levels of deleterious elements, and possess ‘extremely favourable’ iron (Fe):MgO characteristics.
Commenting on the results, Lunnon Metals Managing Director Ed Ainscough says: “These results are further proof that our data-driven approach to de-risking Baker is prudent and effective. They also confirm the reliability of the Baker MRE, with the added bonus of excellent recoveries of the very highest-grade Baker mineralisation and important confirmation of the previous results where Baker approaches the weathering profile up-dip.
“These results are further proof that our data-driven approach to de-risking Baker is prudent and effective”
The new diamond drill results, coupled with the previous metallurgical diamond holes, will all now be incorporated into the Mineral Resource estimation for Baker, with the expectation that they will have a positive impact on tonnes, grade, and metal content in the local areas where they intersected the deposit.“
Lunnon Metals is a mineral resource explorer that currently holds a 100% interest in the mineral rights at the Foster and Baker elements of the Kambalda Nickel Project, subject to certain rights retained by St Ives Gold Mining.
The company’s Kambalda Nickel Project is located in Western Australia and comprises a land package of about 47km-square, which is built up of 2 parcels of 19 (Foster and Baker), and 20 (Silver Lake and Fisher) contiguous mining leases that extend for more than 70km south from the township of Kambalda.
Lunnon Metals had $22 million cash at hand as of 31 March 2023, as stated in its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Lunnon Metals Ltd
