Lefroy Exploration has transitioned its Lucky Strike Gold Mine from approvals to active mining, with first ore haulage and toll milling set for early 2026. Meanwhile, promising drilling results at the Burns Gold Project hint at further resource growth.
- Lucky Strike Gold Mine moves from final approvals to mining commencement
- First toll milling scheduled for February 2026 under profit-sharing agreement with BML Ventures
- Second $0.75 million cash advance received, maintaining strong liquidity
- Resource extension and metallurgical drilling completed at Burns Gold Project
- Advanced discussions underway for further development across Lefroy Project
Lucky Strike Mine Accelerates to Production
Lefroy Exploration Limited (ASX, LEX) has made significant strides in advancing its Lucky Strike Gold Mine, located 60 kilometres southeast of Kalgoorlie. During the December 2025 quarter, the company secured all final mining and environmental approvals, enabling the transition from permitting to active mining operations. Under a profit-sharing agreement with BML Ventures Pty Ltd, Lefroy holds a 50% stake, with BML managing mining activities and funding capital and operating costs.
Mining commenced in December 2025 with substantial pre-strip waste removal completed, and ore haulage is on track to begin in January 2026. The inaugural toll milling campaign is scheduled for February 2026, marking a critical milestone towards generating first cashflow. Lefroy anticipates receiving its first profit-share distribution well within the first half of 2026, positioning the company to capitalise on the current robust gold price environment.
Burns Gold Project Shows High-Grade Potential
Parallel to Lucky Strike’s operational progress, Lefroy has completed a focused drilling program at the Burns Gold Project, part of the broader Lefroy Project portfolio. The Burns Central Deposit hosts a significant high-grade gold zone, with a mineral resource estimate of 4.22 million tonnes at 1.18 grams per tonne gold, containing approximately 159,000 ounces near surface.
The recent reverse circulation drilling targeted extensions of this high-grade corridor to the north, with assays returned in January 2026 confirming encouraging results. Additionally, a diamond drilling program aimed at metallurgical testing was completed, with full results expected in the March quarter. Preliminary metallurgical work suggests excellent gold recoveries, supporting potential development pathways.
Financial Position and Strategic Outlook
Financially, Lefroy remains well positioned with a strong cash balance of $1.85 million as of 31 December 2025. The company received a second cash advance of $0.75 million from BML under a profit cash advance facility, bringing total funding drawn to $2 million of the $2.5 million commitment. Operating and investing expenditures during the quarter were focused on advancing mining and exploration activities, particularly at Burns.
Looking ahead, Lefroy is engaged in advanced discussions with other operators to further develop its gold deposits within the Lefroy Project. The combination of near-term production from Lucky Strike and exploration upside at Burns sets the stage for potential growth in 2026 and beyond.
Bottom Line?
With mining underway and exploration results promising, Lefroy is poised for a pivotal year as it moves from development to cashflow generation.
Questions in the middle?
- How quickly will profit-share cashflows from Lucky Strike materialise and impact Lefroy’s earnings?
- What will the full metallurgical test results from Burns reveal about processing and recovery efficiencies?
- Could further resource extensions at Burns or other Lefroy deposits significantly alter the company’s valuation?