Lefroy Exploration Limited has confirmed significant high-grade gold mineralisation at its Burns Gold Deposit through recent diamond and reverse circulation drilling, reinforcing the deposit's development potential within its Lefroy Gold Project.
- Diamond drilling confirms high-grade core with multiple significant gold intersections
- Reverse circulation drilling extends shallow gold mineralisation northwards
- Burns Deposit Mineral Resource Estimate totals nearly 498,000 ounces of gold
- Metallurgical samples collected; test results expected by end of January 2026
- Company plans further drilling to explore resource growth and development options
Confirming the High-Grade Core
Lefroy Exploration Limited (ASX, LEX) has delivered encouraging results from its latest drilling campaign at the Burns Gold Deposit, part of the broader Lefroy Gold Project in Western Australia's prolific Kambalda-Kalgoorlie district. The recent diamond drilling program successfully intersected the high-grade core of the deposit, with standout results including a 20.87-metre interval grading 2.69 grams per tonne (g/t) gold, featuring a higher-grade section of 3.87 metres at 7.09 g/t. These results validate the existing resource model and underscore the deposit's quality.
Complementing the diamond drilling, reverse circulation (RC) drilling targeted the oxide gold zone, returning exceptional near-surface intersections such as 30 metres at 5.76 g/t gold, including a 5-metre segment at an impressive 17.3 g/t. These findings highlight the potential for accessible, high-grade oxide mineralisation that could support cost-effective extraction methods.
Resource and Regional Context
The Burns Gold Deposit currently hosts a Mineral Resource Estimate (MRE) of approximately 43 million tonnes at 0.36 g/t gold, equating to nearly 498,000 ounces, with a high-grade component of 4.22 million tonnes at 1.18 g/t gold for around 159,000 ounces. Situated just 70 kilometres southeast of Kalgoorlie and near established operations such as the St Ives gold camp, the deposit benefits from favourable infrastructure and geological settings.
Drilling along strike to the north has extended the known mineralisation footprint, with shallow zones of significant gold grades intersected beyond the current resource limits. This suggests promising upside potential for resource growth, which Lefroy plans to explore further with additional drilling programs.
Advancing Development Pathways
Importantly, metallurgical samples collected during the drilling campaigns are undergoing test work, with results expected by the end of January 2026. These tests will assess gold recovery rates using conventional gravity and cyanide leaching methods, critical factors in determining the economic viability and optimal processing routes for the deposit.
Lefroy’s CEO, Graeme Gribbin, emphasised the significance of these results, noting the exceptional nature of the high-grade core and the company's intent to integrate metallurgical findings to advance development options. The company is targeting a second gold production pathway alongside its existing Lucky Strike operation, aiming to leverage the Burns Deposit’s potential to generate cash flow and enhance shareholder value.
Looking Ahead
With a robust resource base, confirmed high-grade mineralisation, and promising metallurgical prospects, Lefroy Exploration is well-positioned to unlock further value at Burns. The company’s strategic focus on low-cost, profit-share mining agreements and ongoing exploration upside in the region could accelerate its transition from explorer to producer.
Bottom Line?
As metallurgical results loom and exploration continues, Burns stands as a pivotal asset shaping Lefroy’s next growth chapter.
Questions in the middle?
- What will the metallurgical test results reveal about gold recovery and processing costs?
- How much can the Burns resource grow with further drilling along strike and at depth?
- What development timeline and production scale is Lefroy targeting for the Burns Deposit?