Lady Herial Delivers 26m at 6.37g/t and 7m at 34.38g/t Gold in Grade Control Drilling

Robust Assay Results Reinforce Lady Herial's Potential

Lunnon Metals Limited (ASX – LM8) has delivered a compelling update on its Lady Herial gold deposit, part of the broader Kambalda Gold & Nickel Project (KGNP) in Western Australia. The company’s recent infill grade control drilling has returned thick, high-grade gold intervals that confirm the deposit’s robust mineralisation from surface to the base of the planned open pit, approximately 45 metres deep.

Among the standout results are intervals such as 26 metres at 6.37 grams per tonne (g/t) gold, 14 metres at 18.07 g/t, and an exceptional 7 metres at 34.38 g/t gold. These results not only affirm the continuity and grade distribution anticipated by Lunnon Metals’ geological models but also highlight the deposit’s potential to deliver strong early cash flow through selective mining of high-grade zones.

Comprehensive Drilling Program Completes Upper Structure

The recent drilling campaign focused on the Upper Structure of Lady Herial, employing a tight grade control spacing of approximately 8 by 6 metres. This operational drilling phase is designed to de-risk the deposit ahead of any mining activity, providing confidence in grade and geological continuity. While assays for the Middle and Lower Structures remain pending, the current results reinforce the deposit’s overall quality and support the company’s staged development approach.

Managing Director Edmund Ainscough emphasised the significance of these findings, noting that the methodical drilling and modelling efforts have effectively validated the expected grade ranges. This validation is critical in minimising risks as the project advances towards production.

Strategic Development and Processing Partnerships

Lunnon Metals is actively negotiating a commercial agreement with its major shareholder, St Ives Gold Mining Co. Pty Ltd, to process potential gold production from Lady Herial at St Ives’ nearby processing plant. This arrangement could streamline development and reduce capital expenditure, enhancing project economics.

The company’s recent scoping study outlined a modest-sized, low strip ratio open pit capable of producing approximately 18,000 ounces of gold at an average grade of 1.8 g/t. At a gold price of A$5,000 per ounce, this could translate into around A$45 million in free cash flow over a short timeframe, underscoring the deposit’s economic attractiveness.

Context Within a Prolific Gold Camp

Lady Herial sits within the historically significant Kambalda/St Ives gold camp, one of Australia’s most prolific gold-producing regions. The area has a rich mining heritage dating back to the late 19th century and continues to attract exploration interest due to its geological endowment. Lunnon Metals’ ownership of key tenements and strategic partnerships position it well to leverage existing infrastructure and regional expertise.

Looking ahead, the company plans to integrate pending assay results from the Middle and Lower Structures and explore opportunities to optimise mine design to prioritise early extraction of high-grade material. This approach aims to maximise cash flow and reduce operational risk during the initial production phase.