Lunnon Metals Limited (ASX: LM8) has unveiled a significant to update its nickel Mineral Resource estimate (MRE) for the Baker deposit, its first discovery at the Kambalda Nickel Project (KNP) in Western Australia.
Within 12 months of announcing the discovery of Baker in January 2022 and less than 18 months since listing, Lunnon Metals confirms this new deposit as its cornerstone asset.
The new Baker MRE now stands at 929,000 tonnes @ 3.3% nickel for 30,800 contained nickel tonnes, comprising:
- 638,000 tonnes @ 3.8% Ni for 24,000 nickel tonnes in Indicated Resource; and
- 291,000 tonnes @ 2.3% Ni for 6,800 nickel tonnes in Inferred Resource.
This result increases Lunnon Metals’ global MRE across the KNP to 2.6 million tonnes @ 3.1% nickel for 79,300 contained nickel tonnes1, a 23% increase in contained metal since June 2022. Since Lunnon Metals listed in June 2021, the global MRE at KNP has grown by 103% in contained nickel metal terms.
Managing Director, Ed Ainscough, said 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 2022) and a resultant higher proportion (78%) of Indicated Resource as 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 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 south east beyond the limits of the Inferred Resource, advancing the technical and mine design studies are now the priority for the company with the down plunge potential able to be targeted more accurately and efficiently from the potential future underground development, should it proceed.
Mr Ainscough said the updated MRE positions the company to fast track Baker by commencing mine design and scheduling in the March 2023 quarter. Metallurgical and geotechnical studies have been ongoing as the drilling programme and MRE update progressed. Coupled with significant advancement on the permitting front, the Company is well placed to continue reporting the steady progress of Baker throughout 2023 towards a potential Final Investment Decision (FID).
The company is progressing permitting activities to dewater Foster and possibly use neighbouring infrastructure at Baker, such as the West Idough open pit (for the Baker decline portal location), existing waste dumps and dewatering corridors.
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,” Mr Ainscough said.
“To think there was over 30,000t 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 thank Aaron 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.”
