Lefroy Exploration has kicked off a major grade control drilling campaign at its Lucky Strike Gold Project, fully funded by partner BML Ventures, aiming to underpin mining operations slated for the second half of 2025.
- 16,500m grade control drilling program underway targeting northern Lucky Strike pit
- Drilling fully pre-funded by profit-share partner BML Ventures
- Program supports geotechnical, hydrogeological, and rock characterisation studies
- Heritage, clearing permits, and mine planning progressing on schedule
- Development and production targeted for second half of 2025
Drilling Campaign Commences at Lucky Strike
Lefroy Exploration Limited (ASX:LEX) has announced the commencement of a substantial 16,500-metre grade control drilling program at its Lucky Strike Gold Project in Western Australia. The campaign focuses on the northern half of the deposit, a key area within the project’s mineral resource estimate of 1.27 million tonnes at 1.95 grams per tonne gold, equating to approximately 79,600 ounces.
This drilling initiative is fully pre-funded by Lefroy’s profit-share mining partner, BML Ventures Pty Ltd, who will also cover all capital and operational costs. Under the agreement, net profits from the Lucky Strike area will be split evenly between Lefroy and BML, reflecting a collaborative approach to advancing the project towards production.
Supporting Studies and Project Readiness
Beyond grade control, the drilling program is designed to gather critical data for geotechnical, hydrogeological, and waste rock characterisation studies. This includes specialized vertical holes for hydrogeological testing by Rockwater Pty Ltd and geotechnical holes equipped for optical acoustic televiewer surveys, which will inform mine planning and operational safety.
These efforts follow a successful confirmatory drilling phase earlier this year that validated the existing resource and geological model. Final pit optimisations have been completed, setting the stage for mining operations to commence as planned in the second half of 2025.
Permitting and Community Engagement Progress
Lefroy has also made significant strides in environmental and regulatory preparations. Flora and fauna surveys have been completed, with clearing permits expected to be submitted within the June quarter. Collaborative heritage consultations with the Kakarra native title claimants have been conducted, and heritage surveys for the haul road corridor are scheduled.
Meanwhile, negotiations for a toll milling agreement are actively underway, a critical component for processing ore once mining begins. The company’s detailed project schedule and budget are now finalized, reflecting a well-structured path to production.
Strategic Outlook
CEO Graeme Gribbin emphasised the momentum building at Lucky Strike, highlighting the importance of the grade control drilling in enabling final pre-mining studies. The program’s data will be instrumental in refining mining plans and ensuring operational readiness. Lefroy’s broader portfolio, including the Lefroy and Lake Johnston projects, continues to underpin its growth strategy in gold and critical minerals exploration.
As Lefroy advances towards production, the partnership model with BML Ventures exemplifies a risk-sharing approach that could accelerate development timelines while managing capital exposure.
Bottom Line?
With drilling underway and key permits on track, Lefroy is poised to transition Lucky Strike from resource to revenue in H2 2025.
Questions in the middle?
- What will the assay results from the grade control drilling reveal about ore grade consistency?
- How soon can Lefroy finalize the toll milling agreement and what terms will it include?
- Could deeper Stage 2 mining at Lucky Strike materially extend the project’s life or scale?