Burns Deposit Drilling Raises Questions on Resource Growth and Production Timing
Lefroy Exploration has commenced reverse circulation drilling at its Burns Gold Deposit, aiming to extend a high-grade gold corridor with assay results expected early next year.
- RC drilling underway targeting high-grade gold extensions at Burns
- Burns Deposit holds nearly 500,000 ounces of gold resource
- Diamond drilling for metallurgical sampling completed
- Assay and metallurgical results anticipated by January 2026
- Mining recently commenced at Lucky Strike, supporting growth strategy
Drilling Resumes at Burns Gold Deposit
Lefroy Exploration Limited (ASX, LEX) has initiated a new phase of reverse circulation (RC) drilling at its Burns Gold Deposit, located within the prolific Lefroy Gold Project in Western Australia's Kambalda-Kalgoorlie district. The current drilling campaign focuses on extending the high-grade gold corridor along strike to the north, following promising intersections from previous programs.
Significant Resource Base and Growth Potential
The Burns Deposit boasts a mineral resource estimate (MRE) of approximately 43 million tonnes at 0.36 grams per tonne gold, equating to nearly 498,000 ounces. Within this, a high-grade zone contains over 4 million tonnes at 1.18 grams per tonne, representing 159,285 ounces. Earlier drilling revealed substantial shallow gold intersections, including 38 meters at 3.87 g/t and 7 meters at nearly 4 g/t, underscoring the potential for resource expansion.
Metallurgical Sampling and Upcoming Results
Complementing the RC drilling, Lefroy has completed a diamond drilling program designed to collect metallurgical samples from the heart of the high-grade zone. This work aims to refine understanding of gold recovery characteristics, building on encouraging preliminary test results from 2023 that showed high gravity recoverable gold and excellent leach recoveries. Assay and metallurgical results from this latest drilling are expected by the end of January 2026.
Strategic Positioning and Forward Outlook
CEO Graeme Gribbin expressed optimism about the drilling campaign and the company’s broader growth trajectory, highlighting that the gold system remains open both north and south. With mining recently commenced at the nearby Lucky Strike deposit, Lefroy is positioning itself for a strong operational and exploration period in 2026. The company’s strategy of leveraging shallow, high-grade deposits through profit-share mining agreements aims to deliver low-cost gold production and cash flow generation.
Regional Context and Market Implications
The Lefroy Gold Project sits in a world-class gold district near established operations such as Gold Fields’ St Ives and Vault Minerals’ Daisy Milano. Lefroy’s growing resource base, combined with ongoing exploration success, could enhance its profile as a significant regional player. Investors will be watching closely for the upcoming assay results to assess the potential for resource upgrades and the implications for development timelines.
Bottom Line?
As assay results approach, Lefroy’s Burns Deposit drilling could unlock new high-grade ounces, setting the stage for growth in 2026.
Questions in the middle?
- Will the upcoming assay results confirm significant resource extensions at Burns?
- How will metallurgical findings impact processing strategies and costs?
- What timeline does Lefroy envision for advancing Burns towards production?