Overview
Gold and nickel in the heart of Kambalda
Lunnon Metals Ltd is a gold/nickel explorer developer with an enviable position in one of the world’s great dual commodity belts, the St Ives (Au) / Kambalda (Ni) district. With over A$20M cash at hand, the company is enjoying considerable discovery success for gold and offers unrivalled leverage for investors to both gold and nickel discovery and development.
All Mineral Resources and emerging prospects are hosted on granted Mining Licences in a district with over 60 years of continuous mining history and the accompanying short lead times to regulatory approval. With a tightly held register and Gold Fields Ltd as a major shareholder (~31%), Lunnon Metals value proposition is primed to respond strongly to commodity price moves and a robust discovery and development news flow.
Location
Lunnon Metals currently holds 100% of the mineral rights at the Foster and Baker elements of the Kambalda Gold & Nickel Project (KGNP), subject to certain rights retained by St Ives relating to gold rights in minor parts of the project area. It also recently acquired rights to nickel at the last two historical WMC nickel mines never previously transacted, Silver Lake and Fisher, in the heart of Kambalda. In total, the four historical mines that the Company owns produced over 161,000 tonnes of nickel metal when in production between 1967 and 1994.
Kambalda and Lunnon Metals’ project areas are located 70km south-southeast of Kalgoorlie within the Kambalda Nickel District, Eastern Goldfields, Western Australia. Exploration and mining in the region have been occurring since 1896, prior to the town of Kambalda being gazetted in December 1897. Post-World War II, the area was extensively explored and mined by Western Mining Corporation before the sale of the Project area to Gold Fields Limited in December 2001.
KGNP, shown in its regional location in below, is approximately 47km2 in size comprising two parcels of 19 (Foster and Baker) and 20 (Silver Lake and Fisher) contiguous granted mining leases situated within the Kambalda Nickel / St Ives Gold District which extends for more than 70km south from the township of Kambalda. This world-renowned gold and nickel district has produced in excess of 1.6 million tonnes of nickel metal since its discovery in 1966 by WMC Resources Ltd (Kambalda and Widgiemooltha belts combined). In addition, over 15Moz of gold in total has been mined with WMC accounting for 5.9Moz and over 8.3Moz produced by Gold Fields Ltd since the purchase of the operation in December 2001 from WMC, making the Kambalda/St Ives district a globally significant gold camp in its own right.
The area can be accessed via well-established mine road infrastructure and lake causeway from the Kambalda township. The BHP Ltd, Nickel West nickel concentrator plant on the north side of Lake Lefroy is only 20km away from Foster and Baker.
Mineral Resource
The Kambalda Gold & Nickel Project has a JORC Mineral Resource estimate compiled in accordance with the JORC 2012 guidelines of 4.1 Mt @ 2.7% Ni (Indicated 2.26Mt @ 3.1% Ni and Inferred 1.80Mt @ 2.2% Ni) for a total of 109,100 tonnes of nickel metal, hosted at the Foster nickel mine, the newly discovered Baker deposit and recent additions at Silver Lake and Fisher mines to the north of Lake Lefroy.