Lady Herial Drilling Yields 23m at 16.61g/t Au as Lunnon Metals Holds $19.5M Cash

Lunnon Metals Strengthens Gold Exploration Credentials

Lunnon Metals Limited (ASX: LM8) has delivered a robust December 2024 quarterly report, highlighting significant progress in its gold exploration efforts within the prolific Kambalda/St Ives gold camp. The standout development is the confirmation of Lady Herial as a near-surface, high-grade gold mineralisation zone, which the company is now prioritising for further technical evaluation and potential open pit development.

During the quarter, Lunnon Metals completed 3,669 metres of drilling focused exclusively on gold targets, with 35 reverse circulation (RC) holes and three diamond drill (DD) holes at Lady Herial alone. The results have substantially de-risked the prospect, revealing two thick, parallel mineralised structures with grades reaching up to 62.47 g/t Au over 6 metres from surface. The shallow nature of the mineralisation, combined with its location on granted mining leases near existing infrastructure, positions Lady Herial as a compelling candidate for expedited permitting and development.

Expanding Gold Potential Beyond Lady Herial

Beyond Lady Herial, early scout drilling in the Lunnon Basalt and Lunnon Sediment units has yielded encouraging gold intercepts, including a standout 1 metre at 15.68 g/t Au. These rock units, historically underexplored for gold due to a past focus on nickel, now represent promising new frontiers for Lunnon Metals. The company’s recent drilling at the Guiding Star prospect, located 1.6 km southeast of Lady Herial, returned multiple significant gold intercepts, further validating the broader gold potential of the Foster Gold Belt.

Adding momentum, Lunnon Metals secured a Western Australian government Exploration Incentive Scheme (EIS) grant of up to $220,000 to fund a two-hole diamond drilling program at the Defiance West target. This area, situated in the footwall of the Foster nickel mine and adjacent to historically mined gold deposits, will be tested starting February 2025. The Defiance West program aims to explore gold mineralisation in stratigraphy analogous to the nearby Beta/Hunt mine, which has delivered substantial gold production.

Strategic Agreements and Financial Position

In a key corporate development, Lunnon Metals formalised an agreement with the Ngadju Native Title Aboriginal Corporation, securing land access and heritage protocols covering all current gold activities and the Foster-Baker nickel mineral resources. This agreement underscores the company’s commitment to responsible exploration and community engagement in the Lake Lefroy area.

Financially, Lunnon Metals ended the quarter with a strong cash balance of $19.5 million, down slightly from $21.1 million at the previous quarter’s end but sufficient to support an anticipated increase in exploration activity. The company reported exploration and evaluation expenditure of approximately $0.95 million for the quarter, primarily driven by drilling and technical studies at Lady Herial and other gold prospects.

Looking Ahead: Accelerated Exploration and Development

Looking forward to the March 2025 quarter, Lunnon Metals plans to intensify its drilling campaigns across multiple gold prospects, including Lady Herial, Guiding Star, and Defiance West. The company aims to complete detailed infill drilling at Lady Herial to support a maiden Mineral Resource estimate and open pit optimisation. Concurrently, the Defiance West EIS-funded drilling will provide critical data to evaluate the gold potential of the Lunnon Basalt and Sediment units.

Managing Director Edmund Ainscough emphasised the methodical and technically driven approach underpinning the company’s exploration strategy. He highlighted the opportunity to leverage the proximity to Gold Fields’ Lefroy Gold Plant for potential ore processing arrangements, which could accelerate the path to production.

While nickel remains a significant asset for Lunnon Metals, the company’s pivot to gold exploration in 2024 has opened a new chapter with promising early results. The combination of high-grade discoveries, strategic partnerships, and a solid financial foundation positions Lunnon Metals well to unlock value from its extensive tenement portfolio in one of Australia’s most prolific gold regions.