Lunnon Metals has secured shareholder approval for its Ore Purchase Agreement and chosen Hampton Mining as the preferred contractor for its Lady Herial gold open pit, moving closer to operational commencement pending regulatory permits.
- Ore Purchase Agreement approved by shareholders
- Preferred mining contractor selected from five tenders
- Geological model update underway to finalize mine design
- Regulatory approvals from WA government pending
- Project situated in prolific St Ives gold camp
Ore Purchase Agreement Secured
Lunnon Metals Limited (ASX – LM8) has taken a significant step forward in its Lady Herial gold project with the recent shareholder approval of the Ore Purchase Agreement (OPA) with St Ives Gold Mining Co., a subsidiary of Gold Fields Ltd and a major shareholder in Lunnon Metals. This approval clears a major hurdle, leaving only regulatory permits and final technical agreements as outstanding conditions before mining can commence.
Mining Services Contract Awarded
Following a competitive tender process involving five open pit mining contractors, Lunnon Metals has selected Hampton Mining and Civil, a Kalgoorlie-based firm, as the preferred contractor for mining services at Lady Herial. The award is conditional on finalising the mine schedule, regulatory approvals, contract terms, and board endorsement. This local partnership aligns with Lunnon Metals’ commitment to its Local Content Policy and promises operational efficiency and community engagement.
Geological and Technical Preparations
Recent close-spaced drilling campaigns have enabled Lunnon Metals to update the geological model for Lady Herial, a critical step to satisfy the OPA’s requirements. The updated model will inform the detailed mine design and schedule, which must be agreed upon with St Ives Gold Mining Co. The company also plans to update its Mineral Resource estimate and Scoping Study to reflect the latest data and commercial terms, providing investors with a clearer picture of the project’s potential.
Awaiting Regulatory Green Light
Lunnon Metals has submitted its Mining Proposal, Mine Closure Plan, and Native Vegetation Clearing Permit applications to the Western Australian Department of Mines, Petroleum and Exploration. While approvals are still pending, the company expects them imminently based on government timelines. The project’s modest footprint and location within a historically disturbed mining area may facilitate a smoother regulatory process.
Strategic Position in a Prolific Gold Camp
The Lady Herial deposit sits within the Foster-Baker Project in the heart of the St Ives gold camp, one of Australia’s most prolific gold-producing regions. With a rich history of gold and nickel mining, the area benefits from established infrastructure and proximity to processing plants operated by major players including Gold Fields. Lunnon Metals’ control over key mineral rights and its collaboration with Gold Fields position the company well to unlock value from this promising deposit.
Managing Director Edmund Ainscough expressed optimism about the project’s progress, highlighting the importance of each milestone in de-risking the deposit and moving towards production. The partnership with a trusted local contractor and the anticipated regulatory approvals mark critical steps in realising the project’s potential.
Bottom Line?
With key approvals and partnerships falling into place, Lunnon Metals is poised to transition Lady Herial from development to production, but regulatory and technical finalisations remain watchpoints.
Questions in the middle?
- When will the Western Australian government grant the final mining and clearing permits?
- How will the updated geological model impact the Mineral Resource estimate and project economics?
- What are the detailed terms and timelines of the mining services contract with Hampton Mining?