Lunnon (ASX:LM8) add nickel tonnage from East TroughDecember 18, 2023
Lunnon Metals has revealed its inaugural resource from the East Trough deposit, bringing in 3000 tonnes of JORC classified all-Inferred nickel metal at 2.7 per cent to the immediate south-west of Baker at its Kambalda Nickel Project.
Mineralisation at East Trough remains open down-plunge, and potentially offers economic mineralisation in close proximity to a future operating nickel mine, with the Lunnon trove now standing at 3.8 million tonnes @ 2.7% nickel for 104,400 contained nickel tonnes – a two-and-a-half-fold increase since Lunnon’s 2021 listing.
With a high-grade, close proximity to planned mining operations, and sulphide mineralisation remaining open down plunge beyond 500 metres from surface, Lunnon believe it offers a compelling opportunity likely to enhance the Baker economics.
“The drill program in the Baker locality has delineated East Trough and provided a growth opportunity in close proximity to any future potential underground mine at Baker,” Lunnon Managing Director Edmund Ainscough said.
“Advancing East Trough to an Inferred Resource category status allows us to factor its potential impact into the technical studies ongoing for Baker and Foster.
“The East Trough channel is open down plunge and as with a lot of the Kambalda nickel channels, offers the prospect of continuing discovery and extensions well into the future.”
The newly stamped resource will now serve as a foundation of economic studies to investigate the potential to exploit the deposit as part of developing Baker, and Lunnon will continue to explore with the aim of defining further MRE potential.
The explorer will also consider extending an exploration decline or cross-cut from workings at Baker, a feature which would offer an underground diamond drill platform for infill, upgrades, and extension testing while doubling as a necessary future second means of egress from any production from a restart.
Metallurgy from the project’s Foster South deposit produced a premium concentrate with grades of 17.3 and 12.9% nickel, premium iron to manganese oxide ratios, and negligible levels of arsenic from conditions made to mimic the Kambalda concentrator.
Lunnon has operations underway across its project as it looks to continue build up more resources and kickstart operations for new feed from the storied region.
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