JOHANNESBURG (miningweekly.com) – The first ore from ASX-listed Kagara Resources’ joint-venture (JV) Lounge Lizard high-grade nickel sulphide deposit, in Western Australia, has been mined, the diversified miner reported on Wednesday.

The ore was accessed by JV partner Western Areas as part of the joint development of its Flying Fox deposit and the connecting Lounge Lizard ore-body.

The 744 t of development ore produced so far, grading 4,4% nickel, has been stockpiled and was awaiting treatment through Western Areas’ Cosmic Boy concentrator.

Kagara noted that the ore produced so far was outside the indicated and inferred resource estimate of 1,15-million tons grading 4,6% nickel, which was previously reported for the Lounge Lizard project.

Kagara executive chairperson Kim Robinson said that production of the first ore at Lounge Lizard highlighted the significant benefits of the JV with Western Areas, which enabled mining to start much sooner and at a lower cost than had Kagara developed the project as a standalone operation.

“The speed at which Lounge Lizard has been developed has been extremely impressive,” Robinson said. “This will generate cash flow from the project far sooner and at significantly less expense than would have been the case had Kagara not struck the JV with Western Areas. It is also expected to result in even greater operating and capital cost benefits for both parties going forward.

Under the terms of the JV, Western Areas would mine Lounge Lizard using access from the Flying Fox decline. Western Areas would manage and operate all aspects of the combined project, and Lounge Lizard ore would be treated at the Cosmic Boy nickel concentrator and sold into Western Area’s offtake agreements.

In addition to accessing first ore at Lounge Lizard, a further 21 diamond drill holes have been drilled from the exploration drive and assay results have been received for eight holes.

When the drilling programme was complete, a reserve for Lounge Lizard would be calculated and this would incorporate any ore drive development within the upper section of the ore body.

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