High-Grade Gold Results at Lady Herial De-risk Open Pit Development Plans

Robust Drilling Results at Lady Herial

Lunnon Metals Limited (ASX – LM8) has delivered a fresh wave of optimism for its Lady Herial gold deposit, part of the broader Kambalda Gold & Nickel Project (KGNP) in Western Australia. The company announced significant high-grade gold assay results from a comprehensive infill reverse circulation (RC) drilling campaign designed to underpin imminent mine development.

The drilling, conducted at an approximate 8m by 6m spacing, returned standout intercepts on the Lower Structure including 20 metres at 12.29 grams per tonne (g/t) gold and 16 metres at 8.16 g/t gold. These grades extend from near surface to the base of the planned open pit, roughly 45 metres deep, highlighting the deposit’s potential for early, high-value extraction.

Strategic Implications and Resource Confidence

These results validate the company’s geological models and support an update to the Mineral Resource estimate. Lunnon Metals anticipates that the updated resource will maintain similar contained gold ounces but at a slightly higher grade, which could translate into a more efficient mining operation with fewer tonnes processed.

Managing Director Edmund Ainscough emphasized the significance of the findings, noting that the drilling confirms the robustness of their technical analysis and allows the team to focus on the highest-grade zones. The company is now poised to advance mine design and production scheduling, aiming to capitalize on the well-defined mineralisation.

Ore Purchase Agreement and Development Outlook

In a strategic move, Lunnon Metals has executed an Ore Purchase Agreement with St Ives Gold Mining Co. Pty Ltd, securing processing capacity for any future gold production from Lady Herial at St Ives’ nearby gold processing plant. This agreement de-risks the project’s development pathway and leverages existing regional infrastructure.

The recent scoping study indicated that a modest open pit could yield approximately 18,000 ounces of gold at an average grade of 1.8 g/t, generating an estimated A$45 million in free cash flow at a gold price of A$5,000 per ounce. The new drilling results reinforce these projections and provide a solid foundation for progressing towards production.

Exploration Beyond the Main Deposit

Beyond Lady Herial’s main mineralised zones, the Northwest Prospect has emerged as a promising target. Located 60 to 70 metres above the Upper Structure and about 50 metres below surface, this stacked gold structure offers potential for future expansion, either by extending the open pit or through underground development post-mining.

While the Northwest Prospect is not expected to impact the current mine design, it represents an important opportunity for Lunnon Metals to enhance the project’s value over time.

Context Within a Prolific Gold Camp

The KGNP sits within the renowned Kambalda/St Ives gold camp, one of Australia’s most prolific gold-producing regions with a history stretching back to the late 19th century. The area has produced over 16 million ounces of gold, and recent discoveries like the Invincible deposit underscore the camp’s ongoing potential.

Lunnon Metals’ focus on Lady Herial and its broader Foster-Baker project aligns with a strategy to develop near-term production while pursuing higher-risk, higher-reward exploration targets within this world-class district.