Lunnon Metals reports successful RC drilling program at Baker nickel deposit

Lunnon Metals Limited (ASX: $LM8) has announced the successful results of a recent reverse circulation (RC) drilling program at the Baker nickel deposit, part of its Kambalda Nickel Project (KNP). The program aimed to extend the mineral resource estimation (MRE) model and define the oxide-transition-fresh rock boundaries, yielding significant nickel mineralisation outside the current Ore Reserve boundaries.

Executive Commentary on Baker Nickel Deposit Results

Another excellent set of results from the Baker nickel deposit. Each time the Company drills at Baker, there is more nickel mineralisation recorded than previously recognized. The high-grade, near-surface nature of the Baker deposit underpins the project's impressive economics. However, in the current nickel market conditions, this program marks the last nickel-focused program for the foreseeable future at Baker. The Company intends to preserve cash and focus on its exciting gold program, including opportunities at Plentiful and Paringa West. The tenement portfolio benefits from positive attributes, offering opportunities for pursuing both gold and nickel projects.

Summary of RC Drilling Program and Future Outlook

The RC drilling program at the Baker nickel deposit has delivered significant growth potential, with high-grade nickel mineralisation extending beyond the current MRE model. Lunnon Metals plans to update the Baker MRE and incorporate it into the combined Baker and Foster Pre-Feasibility Study (PFS). The potential inclusion of a Measured Resource component in the PFS will decrease mineral resource risk, enhancing the project's value. Despite the current nickel market conditions, the Company aims to finalize the PFS study for Baker-Foster and complete permitting, while preserving cash and focusing on its gold opportunities. The Company also looks forward to reassessing nickel exploration timing in the future, pending the results and interpretation of the 3D seismic survey at the Silver Lake-Fisher project's Long South Gap.