How Lunnon Metals’ Lady Herial Tests Unlock High Gold Recoveries Near St Ives
Lunnon Metals has reported robust metallurgical test results for its Lady Herial gold deposit, confirming strong gold grades and recoveries that align with recent economic studies. These findings bolster the project’s development prospects amid ongoing negotiations with Gold Fields.
- 9.0m @ 4.27g/t Au and 14.6m @ 3.09g/t Au in new metallurgical drill holes
- Gravity recoverable gold averages over 42%, indicating coarse gold presence
- Overall gold recoveries reach up to 94.6% at grind size P80 passing 150µm
- Test results support assumptions used in recent Scoping Study
- Negotiations with Gold Fields on Ore Purchase Agreement progressing
Strong Metallurgical Performance at Lady Herial
Lunnon Metals Limited (ASX – LM8) has delivered encouraging metallurgical test work results for its Lady Herial gold deposit, located near the St Ives Gold Plant in Western Australia. The tests, conducted in collaboration with Gold Fields Ltd and designed to replicate processing conditions at the nearby plant, confirm the deposit’s high-grade nature and excellent gold recovery characteristics.
Two new dedicated metallurgical diamond drill holes returned significant intercepts of 9.0 metres at 4.27 grams per tonne gold and 14.6 metres at 3.09 grams per tonne gold. These grades are consistent with the recent Mineral Resource estimate and provide a solid foundation for further development.
Gravity Recovery and Processing Efficiency
The test work highlighted a substantial gravity recoverable gold component, averaging over 42%. This indicates the presence of coarse gold, which is beneficial for recovery efficiency and has been corroborated by previous drilling and onsite panning. Overall gold recoveries reached 91.4% after 12 hours and 94.6% after 24 hours at a grind size of P80 passing 150 microns, closely matching the St Ives plant’s typical grind and residence time.
These results align well with the parameters used in Lunnon Metals’ June 2025 Scoping Study, which projected a metallurgical recovery factor of 90.5%. The study suggested robust financial outcomes, with pre-tax free cash flow potentially exceeding A$44 million at a gold price of A$5,000 per ounce and an all-in cost of approximately A$2,100 per ounce.
Advancing Commercial and Regulatory Milestones
With metallurgical performance confirmed, Lunnon Metals is progressing negotiations with Gold Fields Ltd regarding a potential Ore Purchase Agreement (OPA). The company expects to update the market on commercial terms shortly. Concurrently, permitting activities are underway, including submission of the Mining Proposal and Mine Closure Plan to Western Australian authorities.
Further grade control drilling is in progress to refine the Mineral Resource model, which will inform mine design and scheduling in collaboration with Gold Fields. The Lady Herial deposit benefits from granted mining leases and proximity to established infrastructure, positioning it well to capitalize on the current strong Australian dollar gold price environment.
Outlook for Lunnon Metals and Lady Herial
Managing Director Edmund Ainscough emphasized the significance of these results, noting they validate the deposit’s metallurgical qualities and underpin ongoing commercial discussions. Lady Herial is poised to become a key value driver for Lunnon Metals in the coming year, strengthening its operational partnership with Gold Fields and advancing its footprint in one of Australia’s most prolific gold regions.
Bottom Line?
With metallurgical validation in hand, Lunnon Metals is set to unlock Lady Herial’s potential, but final commercial and permitting hurdles remain.
Questions in the middle?
- What are the final terms and timeline for the Ore Purchase Agreement with Gold Fields?
- How will updated Mineral Resource estimates impact project economics and mine planning?
- What is the expected schedule for regulatory approvals and commencement of mining operations?
