Posted on 30 May 2023
Australian miner Lunnon Metals has completed the preliminary feasibility study (PFS) for the Baker deposit within its greater Kambalda nickel project in Western Australia, Kallanish notes.
The initial probable ore reserve for the Baker deposit stands at 612,000 tonnes, at 2.86% nickel for 17,500 contained nickel tonnes.
The PFS confirms the Baker project is a commercially robust high-grade nickel sulphide orebody, with a modest pre-production capital cost of AUD 18.6 million ($12.15m). It shows pre-tax and post-tax free cash flow generation of AUD 196m and AUD 145m respectively.
The PFS also confirms that Baker will produce a premium nickel concentrate, the results of which now enable detailed offtake discussions for the project.
The PFS leaves significant future upside potential, with a depth of mining of less than 200m below surface and the deposit remaining open down plunge.
Lunnon Metals will now continue further studies, including reviewing scale and synergy benefits with Foster’s Mineral Resources. The company is looking to build on its initial ore reserve for the Kambalda nickel project, which comes less than two years since listing and 18 months after Baker’s discovery.
Source:Kallanish
