Lefroy Reports 13% Resource Growth at Mt Martin and 159,000 oz High-Grade Core at Burns Central

Strategic Resource Growth at Lefroy

Lefroy Exploration Limited (ASX: LEX) has delivered a robust quarterly update for the three months ending December 2024, highlighting key advances in its mineral resource base and strategic partnerships. The company reported a newly delineated high-grade gold zone at its Burns Central deposit, alongside a substantial increase in near-surface resources at Mt Martin, reinforcing Lefroy’s position in the prolific Kalgoorlie-Kambalda gold district.

At Burns Central, Lefroy identified a concentrated high-grade core containing 159,285 ounces of gold within 4.22 million tonnes at 1.18 g/t Au, representing 32% of the total 497,472 ounces in the broader deposit. This zone is predominantly classified as Indicated, enhancing confidence in its economic potential. The discovery aligns with Lefroy’s strategy to prioritise shallow, high-grade resources that can be rapidly advanced towards development.

Mt Martin Resource Expansion

The Mt Martin deposit also saw a meaningful uplift, with an updated mineral resource estimate showing a 13% increase in shallow resources to 439,000 ounces of gold within 9.29 million tonnes at 1.47 g/t Au. This growth stems from a comprehensive reinterpretation of geological domains, new drilling results, and updated density measurements, underscoring the deposit’s potential as Lefroy’s next growth frontier.

Partnership with BML Ventures for Lucky Strike

In a pivotal development, Lefroy executed an Exclusivity and Heads of Agreement with BML Ventures Pty Ltd to advance the Lucky Strike Gold Project, which holds a mineral resource estimate of 1.27 million tonnes at 1.95 g/t Au for approximately 79,600 ounces. BML, a seasoned mining contractor with proven expertise in the Kalgoorlie region, will lead pre-production approvals, capital funding, and operational management under a proposed Profit Share Agreement (PSA).

The agreement envisages a 50/50 split of net surplus cash once BML recovers its upfront costs, aligning incentives for both parties to maximise project value. Lefroy and BML have extended their exclusivity period to finalise the PSA, with expectations to announce the binding agreement within the current quarter. Concurrently, pre-development drilling and mine optimisation activities are underway, alongside toll milling negotiations with nearby processing facilities.

Financial Position and Outlook

Financially, Lefroy remains well-capitalised following a successful $3.3 million placement to institutional and sophisticated investors, bolstering its cash reserves to $3.2 million at quarter-end. Operating and investing expenditures remain disciplined, focused primarily on exploration and evaluation activities. Directors have also committed to participate in the placement, signaling confidence in the company’s strategic direction.

Looking ahead, Lefroy’s focus is on commercialising its advanced gold resources through strategic partnerships and continued exploration success. The company’s portfolio, which includes the Burns Central, Mt Martin, and Lucky Strike projects, collectively hosts over one million ounces of gold, positioning Lefroy as a notable player in Western Australia’s gold sector.