Lunnon Metals Ltd (ASX:LM8, OTC:LNMLF) has achieved an 11% upgrade in tonnage and 9% upgrade in nickel metal at the Baker Nickel Deposit at its Kambalda Nickel Project in the Eastern Goldfields of Western Australia.
The updated mineral resource estimate (MRE) now sits at 1 million tonnes at 3.3% nickel for 33,700 tonnes of contained nickel metal.
Importantly, all 33,700 tonnes sit within 350 metres of the surface, making for easier, cheaper mining and extraction.
The upgrade was achieved based on data generated through three different drilling campaigns consisting of 6,700 metres of drilling, completed since December 2022.
High-potential nickel asset
"Baker is a significant nickel sulphide discovery that due to its many positive attributes, high-grade, shallow depth, excellent metallurgical properties and ease of access, make it a prized asset for an aspiring nickel producer like Lunnon Metals,” Lunnon Metals managing director Edmund Ainscough said.
“Even when times were tough, Kambalda’s nickel mines remained resilient due to these many positive attributes and Baker maintains this rich tradition.
“The company has not been deterred by the current negative sentiment and has quietly gone about de-risking Baker, growing it, and recently permitting the future mine.
“This all stands the company in great stead when the time is right to develop Baker – when this occurs it will be Kambalda’s first brand new nickel mine in nearly 30 years!”
22,900 tonnes of nickel metal now sits in the indicated resource category at Baker, with a further 3,700 tonnes now in the higher-confidence measured category for the first time.
The Baker-Foster project’s combined resource now totals 3.1 million tonnes at 3% nickel for 95,100 tonnes of contained nickel metal.
Lunnon intends to continue advancing a pre-feasibility study for the Baker-Foster Project, as well as a mining proposal for Foster, with the aim to have an initial mining proposal approved for the dewatering and rehabilitation of the Foster decline as the company prepares to resume mining at the deposit.