Lunnon Metals (ASX: $LM8) Baker drill-out update

Lunnon Metals Limited (ASX: $LM8) has reported the successful completion of a diamond drill (DD) and reverse circulation (RC) program at its Kambalda Nickel Project (KNP). The program aimed to validate the current grade estimation model and de-risk potential future production. The results, including high-grade hits such as 12.75m @ 7.21% Ni, have refined the existing Mineral Resource Estimate (MRE) and are expected to enable the declaration of a first-time Measured Resource. The Company anticipates these results to contribute to the ongoing combined Baker and Foster Pre-Feasibility Study (PFS).

Executive commentary on Baker drill-out results

The Managing Director, Edmund Ainscough, emphasized the significance of high-grade nickel sulphides, particularly in the current market conditions. He highlighted the thorough de-risking of the Baker deposit through comprehensive data collection and analysis, positioning it as a low capital cost development opportunity with the flexibility to maximize its value. Ainscough also noted the advanced permitting status, shallow depth, and proximity to existing infrastructure as key positive characteristics of the deposit, providing the Company with the flexibility to choose the optimal time for development.

Summary of Baker drill-out update and outlook

The successful drill-out program at Baker has validated the existing MRE, with high-grade hits reinforcing the Company's confidence in the geological model and grade estimation methodology. The upcoming update to the MRE is expected to enable the declaration of a first-time Measured Resource, potentially leading to a Proven Ore Reserve declaration. The Company aims to maximize the value of Baker by strategically timing its financial investment decision, considering the prevailing nickel market sentiment. Additionally, the ongoing Pre-Feasibility Study will model the impact of varying nickel prices and deliver a mine schedule for both Baker and Foster, enhancing the Company's ability to review processing alternatives and regulatory approvals. The Company continues to deploy its cash prudently to explore new nickel deposits and de-risk the path to production, emphasizing its commitment to strategic growth and development.