Lunnon Metals has announced that its Pre-Feasibility Study (PFS) on the Baker nickel deposit, its first discovery at the Kambalda Nickel Project (KNP) in Western Australia (WA), is nearing completion.
The primary goal of the PFS is to facilitate discussions with potential offtake partners and understand the optionality of an accelerated project timeframe, in which potential free cash flow from Baker may be deployed to fast-track a range of strategic growth options.
The study, which is expected to be concluded by June, will include a financial analysis based on reasonable assumptions on the various relevant modifying factors that influence or impact the estimation of ore reserves at Baker from the Indicated Resource category mineralisation.
The company completed a geotechnical study and confirmed which mining method and ground support regime would be most beneficial.
It also completed capital development design, stoping, production scheduling, and surface infrastructure layout and design.
Lunnon said it is still awaiting final assays to determine the minimum, maximum and weighted mean recovery and concentrate partners for each domain-specific composite collected.
The company’s global Mineral Resource Estimate (MRE) across the KNP stands at 2.9 million tonnes at 3.1 per cent nickel for 87,800 contained nickel tonnes, with the Baker MRE representing 929,000 tonnes at 3.3 per cent nickel for 30,800 contained nickel tonnes.
“The PFS is progressing to its conclusion with just a few final matters to complete before we are ready to report the outcomes to shareholders,” Lunnon Managing Director Ed Ainscough said.
He added that the company’s employees have worked to support the milestone, saying it will be an essential step in Lunnon’s journey from junior explorer to potential nickel producer.
The company said it is well-positioned to report the initial ore reserve in the near term and continue to progress Baker throughout 2023 towards a potential Final Investment Decision.
