Lifezone Metals resource update raises tonnages for Kabanga nickel project

Lifezone Metals Limited (NYSE: LZM), 17% owned by BHP (NYSE: BHP; LSE: BHP; ASX: BHP), announced on Thursday a resource update for its Kabanga Nickel project in northwest Tanzania.

The company reported attributable measured and indicated resources totaling 43.6 million tonnes, grading 2.02% nickel, 0.28% copper, and 0.16% cobalt (2.57% nickel-equivalent). That represents a 69% increase over a resource estimate released in February.

Attributable inferred resources total 17.5 million tonnes, grading 2.23% nickel, 0.31% copper, and 0.16% cobalt (2.79% nickel-equivalent), a 20% increase in tonnage over the February estimate.  

A total of 71% of Kabanga’s resource tonnage is now classified in the measured and indicated categories relative to inferred.

Lifezone CEO Chris Showalter said the resource increases provide a strong foundation for a feasibility study for Kabanga, expected to be completed by the end of third quarter 2024. 

“We believe that Kabanga has the potential to become a low-cost, long-life and environmentally responsible producer of nickel, copper and cobalt, which are critical metals for the green energy transition,” Showalter said. “We look forward to advancing the project in close coordination with the government of Tanzania, who have been highly supportive of our efforts.”

The update comes just over five months after Lifezone began trading on the NYSE, following the business combination between Lifezone Holdings and special purpose acquisition company GoGreen Investments.

The deal brought in $86.6 million, including about $70.2 million from private investment and the receipt of roughly $16.4 million of cash from GoGreen’s trust account, net of redemptions.

Those proceeds are in addition to investments in 2022 by BHP of $90 million into privately-held Kabanga Nickel, owner of the Kabanga project, which acquired the project in 2019, and of $10 million into Lifezone Ltd., both of which are subsidiaries of the company. Lifezone Limited holds 83% of Kabanga Nickel and BHP holds 17%.

Lifezone shares were down 1.2% to US$9.47 on Thursday afternoon in New York, valuing the company at US$756.4 million. Its shares traded in a 52-week range of US$6.90 and US$19.92,

The Kabanga nickel project is believed to be one of the world’s largest and highest grade undeveloped nickel sulphide deposits.