Lunnon Metals Limited (ASX: LM8) has obtained high-grade results with testing at its first discovery and cornerstone asset, the Baker deposit, at the Kambalda Nickel Project (KNP) in Western Australia.
The Baker Mineral Resource Estimate (MRE) currently stands at 929,000t @3.3% nickel for 30,800 contained nickel tonnes.
A diamond drill (DD) campaign has now been completed at Baker designed to provide DD core sample for metallurgical testing of the key geological domains in the updated MRE.
In order to maximize the recovery of the requisite weight of core at the average grade specific to each domain, DD holes were planned to “twin” existing DD core intervals of known width and grade via wedging off the original “parent” hole above the target interval. The assays have been returned and the results for the programme demonstrate excellent correlation between each original DD hole and the recently drilled “twin” for the key MRE domain intervals.
“It’s full steam ahead at Baker,” Managing Director, Ed Ainscough, said. “These results provide validation of the updated MRE and the new test work will fine tune the metallurgical understanding of the deposit.
“The technical studies on-foot also cover the geotechnical and mine design aspects of the deposit and will complement the already high level of detail achieved in the geological and grade model informed by nearly 20km of drilling.”
The metallurgical test work completed to date was based on a single master composite of 170kg, derived from three DD holes drilled in late 2021 intersecting the deposit across its then known extent.
Summary results for the first programme of metallurgical test work were as follows:
• Composite Sample calculated head grade: 2.81% Ni, 0.27% Cu, 0.057 % Co, 16.4% Fe, 20.6% MgO, 7.29% S, 18ppm As
Rougher/Cleaner optimization tests were conducted at a grind size of P80 53μm; results were as follows:
• 86% recovery of nickel to concentrate grading 16.9% Ni;
• 95.5% recovery of copper to concentrate grading 1.88% Cu;
• 85.3% recovery of cobalt to concentrate grading 0.35% Co;
• Arsenic in concentrate graded 95ppm; and
• other concentrate measures included Fe:MgO ratio of 16.8 and sulphur at 36.8%.
The average grade of the updated Baker MRE is now 3.3% Ni (vs 2.8% Ni in June 2022) and the geological interpretation has been further refined, informed now by over 20km of drilling (both Reverse Circulation and DD). The average grade of the Indicated Resource component is now 3.8% Ni, also significantly higher than in the June 2022 MRE.
The company is also close to finalising agreement with St Ives Gold Mining Co. Pty Ltd in regard to the necessary access on the tenements immediately adjacent to the KNP (which are held by St Ives) for activities related to any future development of, and production from, the Baker deposit (e.g. vehicle access and dewatering infrastructure).
The strategic objective is to position the company to consider a potential Final Investment Decision (FID) later in 2023.
For further information please visit: https://www.lunnonmetals.com.au/
