13m at 5.70g/t Au Confirms Lady Herial’s Growth Potential
Lunnon Metals reports robust drilling results at Lady Herial, confirming significant high-grade gold mineralisation beyond current open pit plans and signalling potential for an expanded mining footprint.
- Multiple thick, high-grade gold intercepts including 13m @ 5.70g/t Au
- Drilling confirms mineralisation extends beyond current open pit design
- Potential open pit cut-back to the northwest under economic review
- Mining contracts signed and production expected imminently
- Strategic focus on leveraging gold and nickel assets within Kambalda Gold & Nickel Project
Strong Drilling Results Reinforce Lady Herial’s Potential
Lunnon Metals Limited (ASX, LM8) has announced a series of compelling high-grade gold drilling results at its Lady Herial deposit, part of the broader Kambalda Gold & Nickel Project (KGNP) in Western Australia. The latest reverse circulation drilling program, completed just before the commencement of open pit mining, has delivered multiple significant intercepts, including standout results such as 13 metres at 5.70 grams per tonne (g/t) gold.
These results not only confirm the presence of thick, high-grade mineralisation but also extend the known gold zones beyond the current open pit design, particularly down plunge and to the northwest. This opens the door to a potential open pit cut-back, which could materially increase the mine’s life and output.
Economic and Operational Implications
The company is actively evaluating the economics of expanding the open pit, buoyed by the prevailing strong Australian dollar gold price and the favourable thickness and grade of the mineralisation. Importantly, much of the potential cut-back area lies within a recently approved and fully permitted development footprint, which could expedite regulatory approvals.
Mining contracts with Hampton Mining & Civil Services and Goldfields Technical Services have been signed, with mobilisation underway and production drilling set to start shortly. Lunnon Metals anticipates delivering first ore to its partner Gold Fields later this month, marking a significant operational milestone.
Strategic Positioning in a Prolific Gold Camp
Lady Herial sits within the historically rich Kambalda/St Ives gold camp, one of Australia’s most prolific gold-producing regions. Lunnon Metals holds 100% of the gold rights in the Foster-Baker area of the KGNP, with strong infrastructure nearby, including processing facilities operated by its major shareholder, Gold Fields.
The company’s strategy is to leverage the success at Lady Herial to self-fund further growth opportunities, maintain an aggressive exploration program targeting high-reward discoveries, and build balance sheet strength while keeping a close eye on its nickel assets, notably the fully permitted Baker Underground Nickel Mine.
Looking Ahead
With the drilling results confirming tangible upside beyond current plans, Lunnon Metals is preparing to update its Mineral Resource estimate and refine mine designs accordingly. The company’s ability to integrate these new findings into its operational plans will be closely watched by investors and industry observers alike.
Bottom Line?
Lunnon Metals’ latest drilling success at Lady Herial sets the stage for potential mine expansion and underscores the value of its Kambalda assets.
Questions in the middle?
- How will updated Mineral Resource estimates impact the mine’s life and valuation?
- What is the timeline and likelihood for regulatory approval of the open pit cut-back?
- How will production ramp-up and ore delivery to Gold Fields influence near-term cash flow?
