Kagara acquired the Lounge Lizard nickel project in 2006 from LionOre Mining International for $25 million. The mine is about 138 kilometres south-east of Southern Cross in WA.
In 2008, Kagara announced an indicated resource of 7.55 million tonnes at 1.37 per cent nickel, which included 1.15Mt at 4.6 per cent nickel for Lounge Lizard.
The project is adjacent to Western Areas’ highly successful Flying Fox nickel mine. In May 2009 Kagara entered into a heads of agreement with Western Areas to access the ore body via the Flying Fox decline.
During the June 2011 Quarter, 13,331t of ore grading 4.1 per cent nickel was mined from Lounge Lizard as a combination of stope and development ore. A total of 9,792t of ore grading 3.5 per cent of nickel was processed through the Western Areas Cosmic Boy treatment facility at a recovery of 91.1 per cent, resulting in the production of about 314t of nickel-in concentrate for the quarter. Stockpiles of nickel ore at the end of the financial year stood at 6,568t grading 4.81 per cent for about 316t of contained nickel.
In September 2011, Kagara updated its indicated and inferred ore resource for the Lounge Lizard deposit to 1.02Mt at 5.76 per cent nickel grading 0.29 per cent copper and 0.12 per cent cobalt.
During the September 2011 quarter 13,776t of ore grading 3.6 per cent nickel was mined from the Lounge Lizard deposit. About 14,910t of ore grading 3.7 per cent nickel was processed through the Cosmic Boy treatment facility at a recovery of 92.6 per cent, resulting in the production of 516t of nickel-in-concentrate. This was the highest quarterly metal production to date from the Lounge Lizard deposit according to Kagara. At the end of the quarter, ore stockpiles stood at 10,304t at 4.12 per cent containing 425t of nickel.
Operating. Around October 2011, Kagara announced it is conducting a sale of its Forrestania nickel assets, including the nickel rights to Lounge Lizard.