Lunnon Metals Limited · ASX:LM8
Lunnon Metals — Diggers and Dealers Conference 2021
38 slides from Lunnon Metals's conference presentation, Jul 30, 2021
Slide 1: Diggers and Dealers Conference
LUNNON METALS LIMITED ABN: 82 600 008 848 DIGGERS AND DEALERS CONFERENCE 30 JULY 2021 BOARD/MANAGEMENT Presentation Mr Liam Twigger NON-EXECUTIVE CHAIRPERSON Mr Ian Junk Lunnon Metals Ltd Managing Director, Ed Ainscough, and Exploration & Geology NON-EXECUTIVE DIRECTOR Manager, Aaron Wehrle, will be
Slide 2: Right Team, Right Address, Right Assets, Right Timing
RIGHT TEAM >100yrs combined experience in district and commodities RIGHT ADDRESS August 2nd - 4th 2021 Globally significant nickel & gold camp attending Diggers & Dealers 28 Ni RIGHT ASSETS Under-explored, missed last Ni boom, Investor Update 79 Au no modern exploration for >25 yrs RIGHT TIMING Supp
Slide 3: Important Notice & Disclaimer
Important Notice & Disclaimer This material in this presentation has been prepared by employees of Lunnon Metals Ltd (“LM8” or the “Company”) on its behalf. This presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person, or published, in whole or in
Slide 4: Corporate headlines
Corporate headlines Capital structure Board & Management Shares on issue (#M) 141.2 - direct experience - commodity / assets / location St Ives (GFI) (#M) 44.7 Share price ($) 0.52 Market capitalization ($M) ~72.0 Cash – June 30 2021 ($M) 14.0 Tightly held register Top 20 > 77% 2yr escrow ~45% 1yr e
Slide 5: Globally significant district
Globally significant district The right address..... • Kambalda • 1.6Mt nickel metal mined, > 54Mt of ore since 1966 (at 3.1% Ni) • >14 Moz of gold sold since 1980 • LM8 owns two mines that produced > 90 kt Ni • No meaningful nickel exploration since mid 1990s • Multiple Ni troughs offer discovery u
Slide 6: Aggressive discovery program, significant opportunity
Lunnon’s “Kambalda Playbook” • Deep • World • No • Global drive Significant opportunity Aggressive discovery program Nickel key forward facing metal Poised for the next cycle knowledge of renowned meaningful for net zero project nickel exploration emissions district for >25 yrs *see Appendix page 19
Slide 7: Historical production infographic
Historical production infographic WMC sell mines to ASX startups; St Ives (with Foster/Jan) to Gold Fields Jan Foster Production No meaningful exploration Production 30kt Ni 2021 IPO 61kt Ni 1966 2000/03 2014/18 2020 WMC Kambalda Operations – 1.15mt Ni >0.45mt Ni Produced found & mined MCR raise >$1
Slide 8: LM8 owns 2 historical nickel mines
LM8 owns 2 historical nickel mines Production: Pre-WMC sale vs Total Life of Mine to date 4.3% Opportunity 4.1% • Replicate previous ASX 3.9% 342 3.7% 203 companies’ achievements 3.5% • Aggressive new drilling Ni % 3.3% 101 467 674 3.1% 2.9% • 12.6km DD 196 2.7% 91 • 15.4km RC 2.5% 2.3% • Apply new
Slide 9: Foster & Jan – proven producers
Foster & Jan – proven producers Site played host to a Foster Mine (decline & shaft) – closed ‘94 new WMC gold mill at St Ives in 1987 Relatively shallow depth ~ 560m (vs Otter-Juan at 1,300m) 665m >60kt nickel metal produced >30kt nickel metal produced Jan Shaft – closed ‘86, open at depth 8
Slide 10: 2 Year Aggressive Program to grow Mineral Resource
2 Year Aggressive Program to grow Mineral Resource Discovery Program > RC +/- DD > DHEM (Ni) > Geo-interp & grade estimation > JORC’12 > DDH, RC > DHEM (Ni) > Geo-interp & grade estimation > JORC’12 > Geochem/ground mags > Interp/analysis > RC/DDH bedrock test > DHEM Torquata > Historical Drill Core
Slide 11: RC/DD first pass programmes
RC/DD first pass programmes All drilling shown Mineralised trough separate Two adjacent and parallel to Foster Main, deeply embayed hosts 6.4kt Ni metal in troughs, “clipped” JORC12 – targeting by historical drilling, up-plunge extensions to targeting sulphide grow MRE near / beneath significant HW
Slide 12: Drilling Underway
Drilling Underway 80 m wide slice through East Trough – East • East Cooee opportunity to Cooee test.... • Resource Definition • Advanced Prospect; and • Conceptual .....style targets • Both hangingwall and contact massive sulphide nickel targets • Objective • Maiden resource to JORC’12 standards by
Slide 13: Historical Drill Core Retrieval programme
Historical Drill Core Retrieval programme Stds/blanks Access 350km inserted, density of core, check measured, logging, metallurgical duplicate characterisation, sample/assay Establish RPEEE criteria QAQC checks for reporting as per JORC 2012 requirements Cross reference with Historical digital geolo
Slide 14: 19 years of detailed geology records
19 years of detailed geology records • All 3D registered • Over 430 individual plans/sections • >3 km of strike and 800 m depth coverage at Foster • >500 m depth and full E-W & N-S X/secs at Jan • Foundation to all LM8 interpretation & JORC’12 estimations • Fact based…… 13
Slide 15: Foster South JORC 2012 Resource
Foster South JORC 2012 Resource • Previous successful application of LM8 procedure • 690m BGL, 300m south of Foster Decline • Data validation – collar, DH surveys, lith logging, assays • In-house geological / mineralisation model • Cube Consultant MRE Classification Tonnes (k) Ni % Ni metal (kt) Ind
Slide 16: BHP nickel supply agreement with Tesla Inc
BHP ~ nickel supply agreement with Tesla Inc • Already sells >75% of its nickel into the EV battery sector^ 50kt nickel may • New Tesla supply deal announced 22nd July 2021* translate into ~1 M EV • “Demand for nickel in batteries is estimated to grow by cars saving 2.76Mt over 500 per cent over the
Slide 17: Kambalda Playbook
“Kambalda Playbook” Missed the last nickel boom Two nickel mines and associated 9.0km prospective belt received no meaningful modern exploration for over 25 years (locked up in a global gold major) JORC’12 Resources* Already have 39,000t Ni metal JORC’12 Mineral Resource at Foster Mine – shaping up
Slide 18: Thank you…
Thank you… Driller, Jack Lunnon (far right) overlooking Lake Lefroy from north side of Red Hill: with local and WMC dignitaries at site of KD1, discovery hole for nickel at Kambalda (not on Company’s tenements) (image source ABC Goldfields-Esperance: story dated 1st Feb 2016: image late 1960s / earl
Slide 19: Contact Us
Contact Us Suite 5/11 Ventnor Avenue West Perth, WA 6005 PO Box 470 West Perth WA 6872 Tel: (08) 9226 0887 www.lunnonmetals.com.au 18
Slide 20: Appendices: Mineral Resource Statement
Appendices Mineral Resource Statement Foster Mine Indicated Inferred Total Cut-off Shoot Tonnes % Ni Ni metal Tonnes % Ni Ni metal Tonnes % Ni Ni metal (Ni %) 85H 1% 387,000 3.3 12,800 300,000 1.3 3,800 687,000 2.4 16,600 Foster 1% 223,000 4.7 10,500 116,000 4.8 5,500 340,000 4.7 16,000 South Warren
Slide 21: Competent Persons Statement
Competent Persons Statement Mineral Resources The information in this presentation that relates to geology, nickel mineralisation and Mineral Resources is based on and fairly represents information compiled and reviewed by Mr. Aaron Wehrle, who is a Member of the Australasian Institute of Mining and
Slide 22: Foster South: Additional Drill Hole Details
Foster South: Additional Drill Hole Details Historical WMC drill hole collar/details Hole ID Easting Northing Elevation Dip Azimuth EOH Depth Hole Type Grid (m ASL) (m) CD244 383,490.18 6,529,440.50 320.79 90.00 0.00 726.00 Diamond MGA94_51 CD323 383,444.43 6,529,394.00 317.52 89.75 5.00 846.70 Diam
Slide 23: JORC Table 1 – Foster South
JORC Table 1 — Foster South SECTION 1 SAMPLING TECHNIQUES AND DATA Sampling techniques ‘Nature and quality of sampling (e.g., cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down-hole gamma sondes, or ha
Slide 24: JORC Table 1 – Foster South
JORC Table 1 — Foster South LUNNON METALS sample recovery ‘Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and gra
Slide 25: JORC Table 1 – Foster South
JORC Table 1 — Foster South LUNINON For all sample types, the nature, quality and such samples have been used in the grade estimation process. appropriateness of the sample preparation * WMC typically sampled in interval lengths relevant to the underlying lithology and mineralisation such that sampl
Slide 26: JORC Table 1 – Foster South
JORC Table 1 — Foster South LUNNON METALS the ticket books (ie., tickets still intact). The sample register included regularly inserted Certified Reference Material (CRM) standards into strings of sample numbers. Calico sample bags were then pre-marked to match the unique sample numbers in the sampl
Slide 27: JORC Table 1 – Foster South
LUNNON METALS Verification of sampling and assaying The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocol
Slide 28: JORC Table 1 – Foster South
JORC Table 1 — Foster South LUNNON METALS Orientation of data in relation to geological structure Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orient
Slide 29: JORC Table 1 – Foster South
JORC Table 1 — Foster South LUNNON METALS SECTION 2 REPORTING OF EXPLORATION RESULTS eral tenement and land tenure status Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native
Slide 30: JORC Table 1 – Foster South
JORC Table 1 — Foster South LUNNON METALS Geology Deposit type, geological setting and style of mineralisation. The relevant area is host to typical ‘Kambalda’ style, komatiitic hosted, nickel sulphide deposits. Drillhole information ‘* Asummary of all information material to the understanding of th
Slide 31: JORC Table 1 – Foster South
LUNNON METALS sectional views. Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. The historical drill database co
Slide 32: JORC Table 1 – Foster South
JORC Table 1 — Foster South LUNNON METALS SECTION 3 ESTIMATION AND REPORTING OF MINERAL RESOURCES Database tegrity Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initia collection and its use for Mineral Resource estimation purp
Slide 33: JORC Table 1 – Foster South
JORC Table 1 — Foster South LUNNON METALS Dimensions The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource. The modelled Foster South lode (Indicated and Inferred p
Slide 34: JORC Table 1 – Foster South
JORC Table 1 — Foster South LUNINON the final down hole composite per lode. ‘+ Length and density weighting was used during compositing. The resulting composite data set for the HG lode (35 samples) has a minimum sample length of 0.94 m, a maximum of 1.47 m and a mean of 1.03 m, with 86% of the comp
Slide 35: JORC Table 1 – Foster South
JORC Table 1 — Foster South LUNNON METALS closer to the declustered mean of 4.8756 Ni for the driling (using an 80 mE by 80 mN by 2 mR moving window). ‘+ Asemi-local comparison using swath plots show that the informing composites and the block estimates were observed to correspond satisfactorily bot
Slide 36: JORC Table 1 – Foster South
JORC Table 1 — Foster South processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made. A representative number of drill core samples were identified
Slide 37: JORC Table 1 – Foster South
JORC Table 1 — Foster South LUNNON METALS 2.93 t/m? - Kambalda Komatiite (KK) 2.78 t/m3 - Lunnon Basalt (LB) 2.4 t/m? - Oxidised KK 2.4t/m? - Oxidised LB 2.65 t/m® - Intermediate Dyke 2.65 t/ms - Proterozoic Dyke 3.1 t/m? - Devon Consols Basalt 2.6 t/m? - Kapal Slate 2.8 t/m? - Defiance Dolerite 000
Slide 38: JORC Table 1 – Foster South
LUNNON METALS ‘* grades and geometry are amenable to small-scale underground mining, like many ‘Kambalda-style’ nickel deposits * Ore would likely be sent to the nearby Kambalda Nickel Concentrator (BHP Nickel West). At the time of completing each of the MRE the nickel price was suggestive of an att