Lefroy Exploration is set to launch drilling programs at its Burns Gold Deposit, aiming to expand near-surface high-grade gold resources and validate metallurgical recovery. The deposit’s open-ended potential signals a promising phase for the company’s exploration strategy.
- Drilling to commence mid-November targeting shallow high-grade gold zones
- Burns Deposit holds nearly 500,000 ounces with a high-grade core of 159,285 ounces
- Reverse circulation drilling focused on northern strike extensions
- Metallurgical diamond drilling to confirm gold recovery and processing viability
- Resource remains open along strike and down plunge, indicating growth potential
Renewed Focus on Burns Gold Deposit
Lefroy Exploration Limited (ASX, LEX) is gearing up to intensify exploration at its Burns Gold Deposit, located within the prolific Lefroy Gold Project in Western Australia. The company announced that drilling programs will soon commence, targeting near-surface, high-grade gold zones that have shown promising results in previous campaigns.
The Burns Deposit currently boasts a Mineral Resource Estimate (MRE) of approximately 42.96 million tonnes at 0.36 grams per tonne gold, equating to nearly 500,000 ounces. Within this, a high-grade core contains 4.22 million tonnes at 1.18 grams per tonne for over 159,000 ounces. These figures underscore the deposit’s significant value and Lefroy’s strategic emphasis on unlocking this potential.
Drilling Strategy and Targets
The upcoming drilling program, set to begin in mid-November, will deploy reverse circulation (RC) drilling focused on three step-out lines north of the current resource envelope. This approach aims to test the shallowest zones along the northern strike extension, where previous drilling has returned impressive intercepts such as 38 meters at 3.87 grams per tonne and 30 meters at 2.43 grams per tonne gold.
Notably, the Burns mineral system remains open both along strike to the north and south, as well as down plunge, suggesting considerable upside for resource expansion. Historical intersections to the south, including high-grade hits like 29.1 meters at 2.64 grams per tonne, further highlight the deposit’s growth potential.
Metallurgical Testing to Support Development
Complementing the RC drilling, Lefroy plans a metallurgical diamond drilling program targeting the high-grade core of Burns Central. This single diamond hole will provide geologically intact core samples to validate and refine gold recovery estimates. Preliminary test work completed in 2023 indicated strong gravity recoverable gold averaging 41% and total leach recoveries around 97%, supporting the deposit’s amenability to conventional processing methods.
These metallurgical results are critical for guiding future development pathways and enhancing confidence in the deposit’s economic viability. The diamond drilling is scheduled for completion by mid-November, with results expected to provide a more definitive picture of processing performance.
Strategic Implications for Lefroy Exploration
CEO Graeme Gribbin highlighted the company’s shift towards focusing on the near-surface high-grade oxide portion of Burns, describing it as a transformative step in Lefroy’s exploration and resource growth strategy. This renewed focus aligns with Lefroy’s broader objective to commercialize its gold resources through low-cost production pathways and profit-share mining agreements, as demonstrated by progress at its Lucky Strike Deposit.
With over one million ounces in resources across its portfolio and a zero-cost development pathway, Lefroy is positioning itself to generate cash flow and advance its projects in one of Australia’s most prolific gold regions. The Burns drilling campaign represents a pivotal moment in this journey, with the potential to materially increase resource size and quality.
Bottom Line?
As Lefroy embarks on drilling at Burns, the coming months will be crucial in defining the deposit’s true scale and economic potential.
Questions in the middle?
- Will the upcoming drilling confirm extensions of the high-grade gold zones beyond current resource boundaries?
- How will the metallurgical test results influence the feasibility and design of future processing facilities?
- What timeline and capital requirements will Lefroy face if resource growth at Burns meets expectations?