Lunnon Metals, Ngadju People Sign Mining Agreement for Kambalda Gold-Nickel Project

Lunnon Metals (ASX:LM8) said Thursday (January 9) that it has signed a mining agreement with Ngadju Native Title Aboriginal Corporation regarding the Kambalda gold-nickel project in Western Australia.

In a press release, the company said the agreement covers only relevant parts of the project. The conditions of the agreement have been discussed since June 2021, after Lunnon listed on the ASX.

“This agreement has taken over three years to finalise but embodies a shared commitment with the Ngadju people to progress our gold and nickel portfolio towards development and potential future production,” said Lunnon Managing Director Edmund Ainscough. He added that the deal covers procedures from exploration to production.

According to the company, its tenements at Kambalda predate native title requirements, but it opted to engage proactively with the Ngadju people to show its commitment to collaborating with local stakeholders.

The agreement features a comprehensive framework outlining proper benefits for the Ngadju people regarding the development of Lunnon’s gold and nickel portfolio, including the right to royalties from future production by Lunnon.

The company said the benefits allocated to the Ngadju people are up to the region’s standards, and also include funding for education, cultural awareness programs and conservation initiatives.

Kambalda has a resource of 4.1 million tonnes at 2.7 percent nickel for 109,100 tonnes of nickel metal. The indicated category includes 2.26 million tonnes at 3.1 percent nickel, while 1.8 million tonnes at 2.2 percent nickel are inferred.

The project lies within the Kambalda nickel district, one of the world’s great dual-commodity belts, and is responsible for production of 1.6 million tonnes of nickel and over 15 million ounces of gold since 1966.

Lunnon holds 100 percent of the mineral rights to Kambalda's Foster and Baker elements, subject to to certain rights retained by St. Ives. It also recently acquired rights to Silver Lake and Fisher, two historic nickel mines.

Thursday's agreement also renews Lunnon’s mining licenses; the current term was set to end in December 2025.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.