Lunnon Metals (ASX: LM8) has reported a maiden mineral resource estimate for the Baker Shoot target within the Kambalda nickel project in Western Australia of 568,000 tonnes grading 2.8% nickel for 15,800t of contained nickel.
The estimate comprises an indicated component of 295,000t at 2.75% nickel for 8,100t; and an inferred amount of 273,000t at 2.82% nickel for 7,700t.
It increases Lunnon’s global mineral resource across the Kambalda nickel project by 33% to 2.2 million tonnes at 2.9% nickel for 64,300t of contained nickel.
Since the company listed on the ASX 12 months ago, its global mineral resource has grown by 65% in contained metal terms.
Successful first year
Lunnon managing director Ed Ainscough said completion of the Baker resource estimate capped off a successful first year which focused on the exploration target at East Cooee.
“We [always] knew this area hosted nickel mineralisation, but we had no idea that within 12 months it would turn into a high-grade discovery, get drilled out and be reported as a JORC-compliant resource,” he said.
“Baker highlights the prospectivity of our ground holdings in the world-renowned Kambalda nickel district and our ability to yield extensional and new discoveries on an ongoing basis.”
Lunnon is progressing initial metallurgical and geotechnical studies at Baker, as well as a drilling program to extend the nickel mineralisation down plunge and along strike where it is currently open.
Permitting activities are also underway in consultation with major shareholder St Ives Gold Mining Co and include exploring the use of existing nearby infrastructure such as the West Idough open pit (for a portal location), existing waste dumps and dewatering corridors.
The Kambalda nickel project area is located within the Kambalda nickel district in WA’s eastern goldfields.
It comprises 19 contiguous mining leases covering approximately 23 square kilometres and is broadly surrounded by tenements held by St Ives.
The East Cooee target has been drilled historically by Western Mining Corporation; however, the company did not progress identified nickel mineralisation at the base of the second flow unit of the hanging wall Kambalda komatiite, despite a broadly-spaced grid of diamond drilling.
An exploration target range for the East Cooee area, which covered Baker Shoot was estimated by Lunnon in 2020.
The work identified multiple mineralised surfaces in basalt-ultramafic contact trough locations, contact flanking locations, footwall positions and extensive hanging wall surfaces.
Lunnon budgeted for drilling in its prospectus to test the exploration target within 18 months of listing.
This drilling led directly to the discovery of Baker.