- Lunnon Metals (LM8) reports high palladium levels in nickel concentrate through metallurgical testwork at its KNP in Western Australia
- Palladium is a critical mineral and the company is eyeing potential by-product sales to boost the value
- Palladium grades of 8.6g/t have been achieved from ore at its Baker prospect with recovery rates of more than 90 per cent
- Following Wyloo’s recent acquisition of Mincor, LM8 has become the only ASX-listed Nickel explorer and developer with assets in Kambalda
- LM8 shares are down 1.04 per cent, trading at 95 cents at 12:05 pm AEST
Lunnon Metals (LM8) has reported high palladium levels in nickel concentrate through metallurgical testwork at its Kambalda nickel project in Western Australia.
Nickel concentrate from LM8’s Baker prospect, once refined with metallurgical downstream processes, turned over a high-grade palladium read at 8.6 grams per tonne of palladium and platinum.
These high grades were underpinned by high recovery values from Baker-sourced ore at 91.9 per cent recovery.
As for nickel, recovery rates for ore from the Warren deposit hit 85.2 per cent and from the Foster 85H Surface prospect, 88.9 per cent. The total mineral resource estimate (MRE) for nickel at KNP stands at 57,000 contained tonnes.
The company is confident both high-value metals could provide the KNP additional value down the line in by-product sales.
Palladium and platinum production potential was first realised in a preliminary feasibility study (PFS) for its Baker prospect, but testwork results were still pending at the time.
The Foster target alone reflects 39,000 tonnes of metal of the total resource.
The PFS estimated palladium grades of 2.35g/t based on what data it could observe at the time but that reading now sits higher at 2.51g/t. Platinum is boosted to 0.62g/t.
As for the Warren and Foster targets, the company is confident it can replicate high-grade nickel concentrates downstream, also noting the presence of copper and cobalt.
“These testwork results confirm that Foster’s mineral resources have the capability to deliver a premium nickel concentrate along with the added bonus of the potential for value to be realised from the palladium and platinum present,” Lunnon Metals Managing Director Ed Ainscough said.
“Our methodical approach to de-risking and permitting our mineral inventory has served us well at Baker and we are confident integrating Foster with the excellent physical and financial results from the recent Baker PFS will open up considerable value and opportunity.”
An ongoing technical study at the Foster target will run further metallurgical testwork, and geotechnical surveys on the mine footwall, allow for overall mine design and begin estimating pre-development costs – including for that of mine dewatering.
Following Wyloo’s recent acquisition of Mincor, LM8 has become the only ASX-listed Nickel explorer and developer with assets in Kambalda.
Lunnon Metals shares were down 1.04 per cent, trading at 95 cents at 12:05 pm AEST.