Lunnon Metals’ ongoing diamond drilling program at its Kambalda project has unlocked the potential for additional nickel sulphides beyond the current resources at Warren.

Diamond hole WRN21DD_003 intersected 2.33m of massive to semi-massive nickel sulphides under a 6.12m zone of disseminated nickel sulphide mineralisation from a depth of 353.05m, outside the current resource of 6,400t of nickel metal grading 3.1%.

While assays are still pending, the result adds to the body of evidence Lunnon Metals (ASX:LM8) has been building, suggesting a return to the glory days of nickel mining at Kambalda is a very real possibility.

These include shallower reverse circulation drilling returning results such as 4m at 3.44% nickel up plunge from old workings on the Warren nickel channel and re-assaying of historical core at the N75C nickel surface in the main Foster mine.

Lunnon’s drilling success, coupled with the abundance of old holes drilled by WMC Resources, reinforce the company’s belief that resource growth at the Kambalda Nickel Project is close at hand.

“Given the delays being experienced across the sector in assay turnaround times, we thought it important to report on the successful intersection of nickel sulphides at Warren; the diamond drilling program is continuing to build a compelling story at Warren and is setting us up for a great start to 2022,” managing director Ed Ainscough said.

Warren nickel channel

The drilling at Warren is designed to test the channel and surrounding area for nickel sulphides, both up and down plunge of the historical workings, demonstrating Warren can mirror the main Foster channel, in length and prospectivity.

Portable XRF readings, which can provide a good idea of what elements are present, support the presence of nickel within the visually identified sulphides with lab testing to determine exact widths and grades.

Lunnon is currently drilling “daughter” holes from WRN21DD_001 which target the anticipated position of the main Warren channel down dip from the parent.

The LM8 team have also carried down-hole electromagnetic surveying of the latest hole to determine the size and style of any conductive response which may indicate an extension of the nickel sulphides intersected.

Results from these activities will likely lead to further diamond drilling targeting extensions of the current Mineral Resource into the gaps left behind by WMC.




This article was developed in collaboration with Lunnon Metals, 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.