Mining Commencement at Lucky Strike: Can Lefroy Deliver on High Gold Price Opportunity?

Mining Begins at Lucky Strike

Lefroy Exploration Limited (ASX – LEX) has marked a significant milestone with the commencement of mining activities at its Lucky Strike Gold Deposit, located near Kalgoorlie in Western Australia. The operation is running around the clock, with pre-strip waste mining well underway and an initial 21,560 bank cubic meters (BCM) of waste material already moved. The company expects to expose its first ore panels by late December 2025, setting the stage for ore haulage to begin in January 2026.

Strategic Partnerships and Approvals

Key to Lefroy’s progress is its profit-sharing agreement with BML Ventures Pty Limited, which oversees mining operations at Lucky Strike. This partnership not only facilitates operational management but also includes a $2.5 million profit cash advance facility to support development costs. Lefroy has also secured all necessary mining and environmental approvals, including the Mine Development Closure Plan and Clearing Permits, ensuring compliance and smooth progression of site works.

Pathway to Production

With mining underway, Lefroy is advancing rapidly towards its first toll milling campaign. Ore from Lucky Strike is scheduled to be processed at the FMR Greenfields Mill in Coolgardie starting February 2026. The company remains on track to produce its first gold by March 2026, capitalizing on a historically high gold price environment. Site infrastructure is also being developed concurrently, including accommodation facilities and site offices to support ongoing operations.

Broader Portfolio and Growth Potential

Lucky Strike is part of Lefroy’s broader Lefroy Project, which boasts over one million ounces in gold resources across multiple deposits including Mt Martin and Burns Central. The company’s low-cost production strategy, leveraging profit-sharing agreements, positions it well to generate cash flow and expand its footprint in the prolific Kalgoorlie and Kambalda mining districts.

Outlook

As Lefroy moves from mining commencement to production, the company’s strong financial position and strategic partnerships provide a solid foundation for growth. Investors will be watching closely as first gold production approaches, which could validate Lefroy’s development model and unlock further value across its portfolio.