Lunnon Metals (ASX:LM8) produce premium from Foster South

Lunnon Metals (ASX:LM8) produce premium from Foster South

December 8, 2023 Off By Tom Duggan

Lunnon Metals has produced a premium concentrate with nickel recovery averaging 91.4 per cent from the Foster South deposit, one of a collection making up its Kambalda Nickel Project near the famed concentrator in Western Australia.

Conditions were made to simulate the Kambalda concentrator, and it rewarded with concentrate grades of 17.3 and 12.9% nickel, premium iron to manganese oxide ratios, and negligible levels of arsenic.

And high recoveries and concentrate grades added further value on offer at the 340,000 tonne @ 4.7% nickel for 16,000 tonne deposit, part of an ongoing feasibility study for reopening the historic Foster mine alongside new underground operations at Baker.

Lunnon Managing Director Edmund Ainscough said it was another excellent example of a high quality Lunnon portfolio.

“The metallurgical results reported today are an important further data point in highlighting the premium nature of the concentrate able to be produced from Lunnon Metals’ deposits,” Mr Ainscough said.

“Foster South was left unmined by WMC Resources Ltd and offers the potential for high-grade nickel sulphides in proximity to existing development once the mine is dewatered and re-entered.”

Foster South also remains open down plunge, and Lunnon has operations underway at several deposits for a short-term increase to its global 3.7 million tonnes @ 2.7% Ni for 101,600 contained nickel tonnes Kambalda resource.

Discussions around ore tolling and purchase partners are ongoing, and these results will provide another important data point for Lunnon’s ability to produce a premium concentrate.

Nickel prices remain depressed for now, but it takes time to build a mine and Lunnon see itself in a supportive environment for a bull cycle for nickel and gold with immense demand still looming for one of the key metals of electrification.

LM8 Kambalda

Isometric view, illustrating the location of the Foster South deposit within the Foster Mine
complex and metallurgical averages.

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LUNNONMET FPO [LM8]
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