Versatile nickel – which is ductile, non-corrosive and recyclable – has always been an important commodity for a range of nation-building purposes.
Its current critical role in the global energy transition will only serve to intensify global demand.
The base metal’s properties make it an essential alloying material for producing stainless steel and clean energy technologies, including solar, wind, hydro and nuclear power.
As one of the most recycled metals, nickel also aligns with global sustainability goals.
Enter Lunnon Metals
Recognising all of this upside, Lunnon Metals Ltd (ASX:LM8, OTC:LNMLF) is focused on strategic acquisitions and discoveries in the historic Kambalda nickel district of Western Australia that position it as a key player in the sector and the region.
The company is committed to capitalising on the district’s potential as a world-class nickel and gold province and securing its place in the nickel supply chain within a tier-1 jurisdiction.
Lunnon’s portfolio, which includes the Baker Nickel Deposit and the Foster Nickel Mine, puts it at the centre of the mining community in Kambalda.
The company stands out as the only ASX-listed explorer and developer in the district, boasting a strong balance sheet with A$27 million in cash.
It plans to leverage Kambalda's premium location and unrivalled discovery record to develop high-grade nickel sulphide resources with resilient project economics.
The portfolio benefits from existing built infrastructure, excellent local services and uncontracted offtake.
The Baker deposit, with a short lead time and economic viability at current prices, underscores Lunnon’s strategy by offering maximum flexibility with low pre-production capital.
Its discovery program and historical core program aim to unlock the value of under-explored assets that missed the last nickel boom.
History of nickel in the area
The region's nickel history began when diamond driller Jack Lunnon, under the guidance of renowned Australian geologist Dr Roy Woodall AO, discovered nickel sulphide mineralisation.
WMC Resources Ltd then aggressively explored the area, uncovering 24 deposits around the Kambalda Dome, Widgiemooltha Dome and Golden Ridge Greenstone Belt.
The initial find, known as the Lunnon Shoot, led to the development of Silver Lake Shaft, Kambalda's first nickel mine.
Silver Lake produced 4.5 million tonnes of ore at 2.7% nickel, yielding 123,318 tonnes of nickel metal and establishing Kambalda as a globally significant nickel district with more than 1.6 million tonnes of nickel metal produced to date.
In the late 1990s, WMC sold its active nickel mines in Kambalda to a clutch of junior ASX-listed companies that thrived, delivering nickel ore to WMC's Kambalda Concentrator through ore tolling and concentrate purchase agreements.
WMC also sold its gold assets at Agnew and St Ives to Gold Fields Ltd, including the Silver Lake, Fisher, Foster and Jan nickel mines, which had produced over 253,000 tonnes of nickel metal between 1967 and 1996.
While Gold Fields focused on gold exploration, the nickel mines remained dormant, missing the mid-2000s nickel boom.
The birth of Lunnon
However, from 2014 to 2021, Lunnon Metals – then ACH Nickel – joint ventured with Gold Fields to reassess historical data and establish a mineral resource of 39,000 tonnes of nickel metal.
This led to Lunnon Metals' ASX listing in June 2021.
In May 2022, Lunnon Metals discovered the Baker deposit and achieved considerable drilling success at the Foster mine, increasing its mineral resource to 109,100 tonnes of nickel metal.
In April of that year, the company also acquired nickel rights to the Fisher and Silver Lake mines, consolidating its hold on the nickel promise of the region.