Lefroy Exploration has reported outstanding near-surface gold assay results from its Lucky Strike project, validating resource models and revealing promising high-grade zones. With diamond drilling underway to explore a potential larger Stage 2 pit, the company is advancing its development plans backed by partner funding.
- Exceptional near-surface gold grades from grade control drilling at Lucky Strike
- Significant high-grade intersections exceeding expectations within top 40-50m
- Grade control drilling fully funded by BML Ventures with no upfront cost to Lefroy
- Diamond drilling commenced targeting potential larger Stage 2 pit
- Clearing permit process underway to support mining development
Exceptional Grade Control Results Bolster Confidence
Lefroy Exploration Limited (ASX, LEX) has released a compelling update on its Lucky Strike Gold Project, situated near Kalgoorlie in Western Australia. The company reported exceptional assay results from the initial tranche of grade control reverse circulation drilling targeting the northern pit area. These results not only validate the existing mineral resource estimate but also reveal higher-than-expected gold grades and thicknesses near surface, particularly within the top 40 to 50 metres.
Among the standout intersections are 19 metres at 4.10 grams per tonne (g/t) gold from 31 metres depth, including a 7-metre interval grading 9.58 g/t, and other significant hits such as 7 metres at 8.46 g/t from 17 metres. These near-surface grades are crucial as they represent the earliest ore zones planned for mining, enhancing the project's economic potential.
Partner-Funded Drilling Accelerates Development
The grade control drilling program, comprising 154 holes to date with approximately half the planned 16,500 metres completed, is fully funded by Lefroy’s mine profit share partner, BML Ventures. This arrangement allows Lefroy to advance its exploration and development activities without upfront capital expenditure, a strategic advantage in the current market environment.
Building on the success of the grade control program, Lefroy has initiated a diamond drilling campaign designed to test the continuity of deeper high-grade zones and assess the feasibility of expanding the pit beyond the current Stage 1 design. This Stage 2 target aims to unlock additional resource ounces and extend the mine life, with previous drilling in the area having returned impressive grades such as 8 metres at 18.66 g/t gold from 145 metres.
Resource and Project Outlook
The Lucky Strike Gold Project currently holds a mineral resource estimate of 1.27 million tonnes at 1.95 g/t gold, equating to approximately 79,600 ounces. Lefroy’s CEO, Graeme Gribbin, highlighted the growing confidence in the mineral system, noting that Lucky Strike is the first of three resources within the broader Lefroy Project portfolio, which collectively contain over one million ounces of gold.
With the clearing permit submission process underway, Lefroy is positioning itself to move swiftly into mining operations. The company plans to update pit shell optimisations following the completion of the drilling programs, which will refine the mine plan and potentially incorporate the larger Stage 2 pit. This forward momentum underscores Lefroy’s commitment to advancing its gold development strategy in a prolific mining district.
Strategic Implications
The combination of robust near-surface grades, partner-funded drilling, and exploration upside at depth presents a compelling case for Lefroy’s Lucky Strike project as a near-term mining opportunity. The ongoing drilling results and permitting progress will be critical in determining the scale and timing of development, with potential implications for the company’s valuation and investor interest.
Bottom Line?
Lefroy’s strong drilling results and strategic partner funding set the stage for a potentially expanded and economically attractive gold operation at Lucky Strike.
Questions in the middle?
- Will the diamond drilling confirm continuity of deeper high-grade zones to justify a larger Stage 2 pit?
- How quickly can Lefroy secure all necessary permits to transition from exploration to mining?
- What are the potential cost and production implications if the resource expands beyond current estimates?