Delays Loom? Final Mine Schedule Still Pending for Lunnon Metals’ Lady Herial
Lunnon Metals has secured the last regulatory approval needed to advance its Lady Herial gold project, bringing it closer to production under a key agreement with St Ives Gold Mining.
- Native Vegetation Clearing Permit approved for Lady Herial
- Final regulatory condition met for Ore Purchase Agreement with St Ives Gold Mining
- Mine schedule agreement remains as last condition precedent
- Feasibility Study to be finalised following mine schedule approval
- Lunnon Metals to receive 70% of free cash flow after cost recovery
Regulatory Milestone Achieved
Lunnon Metals Limited (ASX, LM8) has announced a significant step forward for its Lady Herial gold project, having received the Native Vegetation Clearing Permit from the Western Australian Department of Mines, Petroleum and Exploration. This approval marks the final regulatory condition precedent required under the company’s Ore Purchase Agreement (OPA) with major shareholder St Ives Gold Mining Co. Pty Ltd (SIGM).
The permit, effective from 8 January 2026, clears the way for Lunnon Metals to progress from exploration to development on its first gold discovery within the Kambalda Gold & Nickel Project (KGNP). The Lady Herial deposit is notable for its high-grade, thick gold mineralisation close to surface, situated on granted mining leases with existing infrastructure nearby, which bodes well for efficient project execution.
Next Steps, Finalising the Mine Schedule
While the vegetation clearing permit satisfies the last regulatory hurdle, the company is now focused on agreeing the final mine schedule with SIGM. This agreement is the remaining condition precedent before the OPA becomes unconditional. Once settled, Lunnon Metals will be able to finalise its Feasibility Study, a critical document that will underpin the company’s Final Investment Decision (FID).
The FID will unlock the execution of mining contracts and allow clearing and mining activities to commence. Under the terms of the OPA, St Ives will purchase all ore grading above 0.5 grams per tonne for processing at its nearby Lefroy Gold Plant. Importantly, Lunnon Metals stands to receive 70% of any free cash flow generated after both parties have recovered their costs, positioning the company for a strong financial upside.
Rapid Progress and Strategic Partnership
Remarkably, only 20 months have passed since the first drill hole at Lady Herial in May 2024, underscoring the rapid pace at which Lunnon Metals has advanced the project from discovery to development readiness. The partnership with St Ives, a well-established operator in the region, provides Lunnon Metals with a strategic advantage in processing and marketing the ore, reducing capital intensity and operational risks.
As the company moves towards production, investors will be watching closely for the final mine schedule details and the outcomes of the Feasibility Study, which will provide greater clarity on project economics and timelines.
Bottom Line?
With regulatory clearance secured, Lunnon Metals is poised to transition Lady Herial from promising discovery to producing asset, but key operational details remain to be finalised.
Questions in the middle?
- What will the final mine schedule reveal about production scale and timing?
- How will the Feasibility Study impact the project's financial outlook and investment decision?
- What are the potential risks or delays in executing mining contracts and commencing operations?
