East Cooee

Project Overview

Historical WMC Resources (“WMC”) drill holes had intersected nickel mineralised komatiite in and above an interpreted trough position, now termed East Trough.

Lunnon Metals recently reported success in intersecting nickel sulphides at that prospect (see ASX announcement dated 28th September 2021). RC drilling by Lunnon Metals has now also successfully intersected the hanging-wall surfaces and recorded the following significant results:

9.0 metres (8.7 mTW) @ 1.66% Ni from 113 metres (ECO21RC_007), including:
- 1.0 metre @ 7.44% Ni from 113 metres; and

8.0 metres (7.8 mTW) @ 1.31% Ni from 130 metres (ECO21RC_008), including:
- 2.0 metres (1.9 mTW) @ 3.46% Ni from 136 metres.

Analysis & Interpretation

The East Cooee area is hosted on the eastern limb of the folded prospective nickel belt at KNP and is rapidly developing into a mineralised nickel system with the potential to complement the Company’s existing Mineral Resource of 39,000 tonnes of nickel at the Foster Mine (located 2.5km to the west). Coupled with the results reported on 28th September 2021 for the adjacent East Trough prospect, the East Cooee H/W surfaces are now shaping up as a relatively shallow and extensive host of nickel sulphide mineralisation.

Two main surfaces are interpreted to be above the komatiite-basalt contact to the east of the East Trough position (see Figure 2). They have been previously interpreted to be lower grade and continuous over broad distances (approximately 1.0km dip extent by ~350m across strike at the current maximum known extent).

The mineralised surfaces sit typically between 30m and 60m above the komatiite-basalt contact (see Figure 3 for a cross sectional representation). These mineralised surfaces typically comprise stringer to disseminated nickel sulphides but can include zones of massive nickel sulphides.

This phase of RC drilling and results have confirmed the following:

• Drill holes ECO21RC_007 and ECO21RC_008 confirm the thickness, orientation and continuity of the mineralisation currently modelled.
• High grade components do exist within the broader lower grade nickel mineralised envelopes.
• Spacing of drill pierce points is now approximately 80 m x 100 m, allowing the Company to consider a Mineral Resource estimation
on what are broadly planar and regular mineralised surfaces.

East Cooee area – perspective view looking (NW) illustrating spatial relationship between East Trough,
East Cooee H/W (geological solids red) and the Lunnon Basalt contact (mesh -tan coloured)

The East Cooee H/W prospect formed part of the East Cooee Exploration Target1 reported in the Company’s Prospectus lodged on 11th June 2021. The combined tonnage and grade potential of the Exploration Target was estimated to be in the range of 500 kt to 750 kt with an average grade of 1.25% to 2.5% nickel; the East Cooee H/W surfaces formed the basis of the lower limits of this estimate. Lunnon Metals highlights that the potential quantity and grade of the Exploration Target is conceptual in nature, that prior to this programme of drilling, there had been insufficient exploration to estimate a Mineral Resource and it was uncertain if further exploration would result in the estimation of a Mineral Resource.

This programme of RC drilling was therefore a key part of the Company’s proposed exploration activities designed to test the validity of the Exploration Target as required under the JORC Code, 2012 Edition.

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