Lunnon Metals has officially begun mining at its Lady Herial project, marking the first new mine on the Foster belt in over 30 years and targeting significant gold production amid record prices.
- Contracts signed with Hampton Mining & Civil Services and Goldfields Technical Services
- Site clearing and establishment underway, first gold ore mining imminent
- Lady Herial is first new mine on Foster belt in 30+ years and first open pit at St Ives since 2014
- Feasibility study forecasts 16,270oz gold production from 268,000 tonnes at 1.89g/t Au
- Potential pre-tax cash flow of approximately $45 million at current gold prices
Mining Milestone at Lady Herial
Lunnon Metals Limited (ASX – LM8) has taken a decisive step forward with the commencement of mining activities at its Lady Herial gold project. This development follows the recent signing of key contracts with Hampton Mining & Civil Services and Goldfields Technical Services, signalling the transition from planning to operational execution. Site clearing and establishment are already underway, with the extraction of the first benches of gold ore expected imminently.
A Historic First on the Foster Belt
Lady Herial stands out as a landmark project, being the first new mine; whether gold or nickel; on the Foster belt in over three decades. It also represents the first open pit mining operation on land at St Ives since 2014. This positions Lunnon Metals at the forefront of rejuvenating mining activity in a historically significant region, potentially setting a precedent for further exploration and development.
Strong Economics Backed by Feasibility Study
The project’s economics are underpinned by a recent Feasibility Study, which estimates mining approximately 268,000 tonnes of ore grading 1.89 grams per tonne of gold. This is projected to yield around 16,270 ounces of gold. At current Australian dollar gold prices hovering near record highs; approximately $7,000 per ounce; this translates to an estimated pre-tax cash flow of about $45 million for Lunnon Metals. These figures highlight the potential financial upside for the company and its stakeholders.
Partnerships and Operational Readiness
Key to the project’s progress is the collaboration with major shareholder and partner St Ives Gold Mining Co. Pty Ltd, which supports the Ore Purchasing Agreement. The mobilisation of contractors and commencement of site activities reflect a well-coordinated effort to execute the mining plan safely and efficiently. The company has reaffirmed that all material assumptions from the Feasibility Study remain valid, providing confidence in the forecast production and financial outcomes.
Looking Ahead
Managing Director Edmund Ainscough expressed pride in reaching this milestone, acknowledging the technical, geological, and regulatory work that has de-risked the project. With mining set to begin imminently, the focus now shifts to operational execution and delivering on the promising projections. Lady Herial’s progress will be closely watched as a potential catalyst for renewed activity in the region and a test case for Lunnon Metals’ growth ambitions.
Bottom Line?
Lady Herial’s launch marks a pivotal moment for Lunnon Metals, with early production and cash flow set to validate years of groundwork.
Questions in the middle?
- Will Lunnon Metals meet its projected gold production targets on schedule?
- How will fluctuating gold prices impact the project's profitability moving forward?
- Could Lady Herial’s success spur further exploration and development on the Foster belt?