Lefroy Reports High-Grade Gold Intercepts and $1.25M Funding Boost at Lucky Strike
Lefroy Exploration has advanced its Lucky Strike Gold Deposit through robust drilling results and a $1.25 million cash advance from partner BML Ventures, positioning the company for imminent mining and further exploration.
- Profit-sharing mining agreement with BML Ventures progresses
- Robust near-surface and deeper high-grade gold assay results at Lucky Strike
- First $1.25 million cash advance received under Profit Cash Advance Facility
- Permitting and heritage surveys advancing ahead of planned earthworks
- Exploration drilling planned at Burns Project to extend high-grade gold resources
Profit-Sharing Partnership Accelerates Lucky Strike
Lefroy Exploration Limited (ASX, LEX) has made significant strides in developing its Lucky Strike Gold Deposit, located 60 kilometres southeast of Kalgoorlie. The company’s profit-sharing mining agreement with BML Ventures Pty Ltd is now moving into advanced stages, with BML authorised as the mine operator responsible for funding and managing mining activities. This partnership structure allows Lefroy to leverage BML’s operational expertise and capital, accelerating the path to production.
Strong Drilling Results Confirm High-Grade Potential
The recent completion of a comprehensive grade control drilling program comprising 421 reverse circulation holes has reinforced confidence in the deposit’s geology and resource model. Near-surface assays revealed multiple high-grade intersections, including standout results such as 9 metres at 9.80 grams per tonne gold and 2 metres at 64.37 grams per tonne gold. Deeper Stage 2 drilling targeting zones below the initial pit design returned spectacular results, with intercepts like 24 metres at 5.24 grams per tonne gold, suggesting potential for an expanded mining footprint.
Funding Boost Strengthens Financial Position
In a key financial development, Lefroy received the first cash advance instalment of $1.25 million from BML under a $2.5 million Profit Cash Advance Facility Agreement. This advance, which exceeds the initially planned $1 million, provides Lefroy with a stronger cash position to fund ongoing exploration and development activities. The facility’s terms link repayments to future profit shares from Lucky Strike, aligning incentives between the partners while limiting upfront costs for Lefroy.
Permitting and Heritage Surveys Progress
Permitting efforts are advancing steadily, with heritage surveys conducted in collaboration with the Kakarra Native Title Holders confirming no impediments to development. Clearing permit applications are progressing through government channels, positioning Lefroy to commence earthworks and pre-strip activities in the December quarter. These regulatory milestones are critical to maintaining the project’s development timeline.
Exploration Outlook, Burns Project and Beyond
Beyond Lucky Strike, Lefroy is preparing to advance exploration at the Burns Central Deposit, another high-grade gold target within its extensive Lefroy Project portfolio. Planned drilling aims to extend shallow resource zones and support metallurgical studies that have already demonstrated excellent gold recoveries. Lefroy’s broader strategy focuses on expanding its resource base across its 635 square kilometre tenement package in the prolific Kalgoorlie-Kambalda gold district, with early-stage exploration activities underway.
Bottom Line?
With funding secured and drilling success underpinning resource growth, Lefroy is poised to transition Lucky Strike from exploration to production while advancing its broader gold portfolio.
Questions in the middle?
- How will the final pit design and mining approvals shape the timeline for Lucky Strike’s production?
- What impact will the profit-sharing and cash advance facility have on Lefroy’s future cash flows and profitability?
- Can exploration at Burns and other tenements deliver new resources to complement Lucky Strike’s development?
