Lunnon Metals strikes massive nickel sulphides in the heart of Kambalda
Link copied to
Lunnon Metals’ RC infill drilling at the Kambalda Nickel Project (KNP) is off to a great start, intersecting 12m of nickel mineralisation from 159m – including 6m of massive nickel sulphides from 162m downhole.
The nickel sulphides were identified at the East Cooee H/W prospect – a priority target outside the Foster and Jan mines consisting of known hanging wall nickel mineralisation that was underexplored when the mines were in WMC’s hands.
The company says portable field X-ray fluorescence (XRF) readings support the presence of nickel associated with the visually identified sulphides – but this is no substitute for laboratory analysis.
Assay results are required to determine the exact widths and grades of the nickel sulphide mineralisation identified and are expected in late January at the earliest.
But it bodes well for East Cooee, which is just 300m from a mothballed open cut gold pit mined by Lunnon’s major shareholder Gold Fields, providing a potential access point into a future underground development.
The company IPO’d at $15 million in June and its aggressive exploration program is aimed at growing its Mineral Resource – which currently stands at 39,000 tonnes of nickel at 3.2%.
It certainly helps to have access to over 350 km of historical diamond core from WMC Resources in the Kambalda Nickel District, which has historical production in excess of 1.4 million tonnes of nickel metal.
“ECO-H/W has been both a big surprise and bonus from our early exploration programs post IPO,” says Lunnon Metals’ (ASX:LM8) managing director Ed Ainscough.
“To hit a shallow, easily accessible potential source of high grade nickel sulphides right in the middle of broad spaced historical drilling is obviously satisfying for the team and really highlights the opportunity that sits within the WMC data.
“Just because an area wasn’t drilled, or was drilled on a broad spacing and not followed up, doesn’t mean it can’t still deliver the goods,” he adds.
Once the infill drilling is complete, the drill spacing will be better than 40m x 40m, with the goal to move straight to mineral resource estimate work and complete geotechnical and metallurgical assessments in parallel.
This article was developed in collaboration with Lunnon Metals Limited, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.