Posted on 17 Apr 2024
Australian miner Lunnon Metals will suspend the drilling at its Baker nickel deposit, the company’s cornerstone asset at its Kambalda Nickel Project (KNP) in Western Australia, Kallanish notes.
“In light of current nickel market conditions, the company does not intend to proceed with Baker’s development until these conditions improve,” Lunnon says in a statement.
The company recognises that there is significant option value in timing its financial investment decision to maximise the value of Baker and Foster under a more favourable nickel price and equity price scenario.
In the meantime, the company continues to finalise the pre-feasibility (PFS) study for Baker-Foster and complete the permitting of both deposits. This requires minimal expenditure with the majority of technical data collection and analysis already complete.
Lunnon will review the timing of recommencing nickel exploration when considered appropriate in the future.
Its recent reverse circulation drilling program at the Baker nickel deposit, has shown high-grade results. The company will incorporate the Baker mineral resource estimation update into the combined Baker and Foster PFS.
Source:Kallanish
