Lunnon Metals reports promising update on Foster South nickel project, progresses gold exploration

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Lunnon Metals Ltd (ASX:LM8, OTC:LNMLF) managing director and CEO Edmund Ainscough takes Proactive's Stephen Gunnion through a mineral resource update for the company's Foster South project, which he described as very encouraging. The project now boasts an updated mineral resource estimate of 375,000 tonnes with a 4.7% nickel content, which was based on recent metallurgical drilling.

Ainscough highlighted significant historical data and the high recovery rates of the testing done, which contributed to an overall 10% increase in both tonnes and metal content without changing the grade.

Foster South, a historical mine with a deep nine-kilometre decline, is positioned as a key target for development and mining upon any potential restart of the project. Despite the current negative sentiment towards nickel, Ainscough said the project's proximity to existing infrastructure and high-grade resources positions it well for future developments.

He further noted the ongoing integration and evaluation with the Baker deposit, and the importance of external factors such as decisions from BHP on their nickel business which could affect third-party processing alternatives.

Lastly, Ainscough touched upon the company's strategic pivot to gold exploration during the hiatus in its nickel program, leveraging the region's prolific gold belt. This dual-focused strategy aims to optimize resource development while awaiting further clarity on nickel market conditions.

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View source version on newsdirect.com: https://newsdirect.com/news/lunnon-metals-reports-promising-update-on-foster-south-nickel-project-progresses-gold-exploration-389361710

Lunnon Metals Ltd

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