Lunnon Metals and St Ives Gold Mining have finalized the mine schedule for Lady Herial, making their Ore Purchase Agreement unconditional and setting the stage for mining to begin.
- Detailed mine schedule for Lady Herial open pit agreed with St Ives Gold Mining
- Ore Purchase Agreement now unconditional after satisfying final condition
- Vegetation clearing and drilling underway to explore additional gold zones
- Feasibility Study nearing completion to support Final Investment Decision
- Mining contracts expected to be signed soon, advancing project development
Finalising the Mine Schedule
Lunnon Metals Limited (ASX, LM8) has reached a significant milestone in its development of the Lady Herial gold project in Western Australia. After a collaborative effort with major shareholder St Ives Gold Mining Co. Pty Ltd, the companies have agreed on a detailed bench-by-bench mine schedule for the upcoming open pit operation. This detailed design not only provides a clear roadmap for extraction but also satisfies the last outstanding condition precedent to their Ore Purchase Agreement (OPA), rendering it unconditional.
From Exploration to Mining Ready
This achievement marks a transition for Lunnon Metals from exploration to being mining ready. Since mid-2025, the company has systematically addressed all prerequisites, culminating in this robust and achievable mine plan. With regulatory approvals secured from the Western Australian Department of Mines, Petroleum and Exploration, the project has moved into the operational phase with vegetation clearing already underway within the pit footprint.
Unlocking Additional Potential
Alongside clearing, reverse circulation drilling has commenced in previously inaccessible areas, particularly around a historical 1920s shaft located outside the current mineral resource but within the pit design. This drilling aims to define additional gold mineralisation, which, if successful, could be seamlessly integrated into the existing mine plan, potentially enhancing the project’s economics.
Next Steps, Feasibility and Investment Decision
The completion of the detailed mine schedule enables Lunnon Metals to finalise its Feasibility Study, the results of which are expected shortly. This study will provide the Board with the necessary information to make a Final Investment Decision, paving the way for signing mining contracts and commencing production. Managing Director Edmund Ainscough expressed confidence in the collaborative process and the readiness of the project to advance to the next stage.
Implications for Investors
With the OPA now unconditional and operational activities underway, Lunnon Metals is poised to move from planning to execution. The market will be watching closely for the Feasibility Study outcomes and drilling results, which will provide further clarity on the project’s scale and profitability. This progress signals a potentially transformative phase for the company and its shareholders.
Bottom Line?
Lunnon Metals is set to turn plans into production, but upcoming feasibility and drilling results will be key to unlocking full value.
Questions in the middle?
- What will the Feasibility Study reveal about the project's economics and timeline?
- Could drilling around the historic shaft significantly increase the resource base?
- How soon will mining contracts be signed and production commence following the Final Investment Decision?