Mineral Resource

JORC 2012 Mineral Resource

Perspective view of the Foster Mine area highlighting nickel Mineral Resource models (red) relative to the historical workings

Lunnon Metals has applied significant attention to the review and analysis of the former WMC reported mineral inventories to upgrade and report these in accordance with JORC 2012 guidelines. The work carried out by the Company included a detailed audit of the historical data and historical drill core that supports the current Mineral Resources, including:

• duplicate sampling with QAQC (insertion of certified reference material or sample standards)
• density determinations
• check geological logging
• mineralisation characterisation for metallurgical considerations
• historical section and plan reviews (in 2D and also in 3D as scanned and geo-referenced images)
• review of paper geology logs, assays and surveys cross referencing with the digital database

This work has led to the reporting of the following JORC 2012 Mineral Resources, all reported above a 1.0% Ni lower cut off.

All material modifying factors have been considered and accommodated in the chosen reporting cut-off grade, which is >1.0% Ni. Refer to the ITAR in Schedule 3 of the Prospectus (dated 22 April 2021) released to the ASX for further details, the Competent Person and Important Statements for the Mineral Resources estimates for the nickel deposits on this website which also contain additional information required by ASX Listing Rules 5.8.1 and 5.8.2.

85H

In January 2021, Cube Consulting Pty Ltd (Cube) estimated a Mineral Resource for the 85H nickel surface in the main Foster area. Drillhole data and geological interpretations were supplied by Lunnon Metals and Cube produced the estimate using standard processes and procedures including data selection, compositing, variography, estimation by ordinary kriging (OK) and model validation. Estimates were made for nickel and bulk density only.

Foster South

In December 2020, Cube estimated a Mineral Resource for the Foster South nickel deposit. As with 85H, drillhole data and geological interpretations were supplied by Lunnon Metals and Cube produced the estimate using standard processes and procedures including data selection, compositing, variography, estimation by OK and model validation. Estimates were made for nickel and bulk density as well as the minor elements of arsenic, cobalt, copper, iron, magnesium oxide (MgO) and sulphur. Furthermore, estimates were made for all variables in the background ‘halo’ domain (outside the mineralised lodes) for potential future mine planning purposes (e.g. dilution calculations).

Warren

In November 2020, Cube estimated a Mineral Resource for the Warren nickel deposit (formerly known as Foster NW). As with 85H and Foster South, drillhole data and geological interpretations were supplied by Lunnon Metals and Cube produced the estimate using standard processes and procedures, including data selection, compositing, variography, estimation by OK and model validation. Estimates were made for nickel and bulk density only. The focus of the estimate was the high-grade mineralised lodes, but estimates were also made for the adjacent hangingwall and footwall lower grade oxide mineralised lodes. Unlike the 85H and Foster South areas, the Warren Shoot comprises a large number of separate mineralised zones, both on the komatiite-basalt contact and higher up within the ultramafic sequence, as hangingwall mineralisation. Compared to the Foster South mineralisation, the Warren Shoot area has been relatively well-drilled from the surface and from the access decline. The basalt ‘trough’ is narrow but is well-defined and constrained by drilling.

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