Lucky Strike Gold Mine Produces 584 Ounces in Initial Toll Milling Campaign
Lefroy Exploration has achieved a major milestone with its first gold production from the Lucky Strike Gold Mine, shipping three gold doré bars to the Perth Mint. The initial toll milling campaign is progressing well, with further processing capacity negotiations underway.
- First gold doré bars produced and shipped to Perth Mint
- Initial toll milling campaign underway, completing by end of February
- Ore stocks ready at Lucky Strike and Coolgardie for processing
- Negotiations ongoing for additional toll milling capacity
- Lucky Strike deposit holds 79,600 ounces of gold resource
Milestone Achieved at Lucky Strike
Lefroy Exploration Limited (ASX: LEX) has marked a significant operational milestone with the production of its first gold from the Lucky Strike Gold Mine, located near Kalgoorlie in Western Australia. The company has shipped three gold doré bars, weighing a combined 27.2 kilograms and estimated at 584 ounces, to the Perth Mint Refinery for final processing. This achievement caps a decade of exploration and development efforts, signalling Lefroy’s transition from resource definition to production.
Toll Milling Campaign Progresses
The initial toll milling campaign, conducted at the FMR Greenfields Mill in Coolgardie, is well underway and expected to conclude by the end of February 2026. Additional ore stocks remain on site at both the Lucky Strike ROM pad and the Coolgardie mill, ready for imminent processing. This approach allows Lefroy to leverage existing milling infrastructure, reducing upfront capital expenditure and accelerating cash flow generation.
Expanding Processing Capacity
Lefroy is actively negotiating further toll milling agreements to increase processing capacity for the Lucky Strike project. The company aims to secure up to 250,000 tonnes of ore for Stage 1 processing, reflecting confidence in the deposit’s potential and the broader Lefroy Project’s resource base. These negotiations involve key partners, including BML Ventures, who have been instrumental in funding and operational collaboration.
Resource Base and Strategic Outlook
The Lucky Strike Gold Deposit contains an estimated 79,600 ounces of gold, with a mineral resource estimate of 1.27 million tonnes at 1.95 grams per tonne. Lefroy’s broader portfolio boasts over one million ounces of gold resources across multiple deposits, including Mt Martin and Burns Central, positioning the company for a low-cost, scalable production strategy. CEO Graeme Gribbin highlighted the collective effort behind this milestone and the company’s ambition to deliver significant shareholder value through ongoing exploration and development.
Looking Ahead
With first gold production underway and further toll milling capacity in the pipeline, Lefroy Exploration is poised to advance its operational footprint in the Kalgoorlie region. The company’s strategy of profit-share mining agreements and staged development offers a pragmatic path to cash flow generation while maintaining exploration upside across its extensive land holdings.
Bottom Line?
Lefroy’s first gold production is just the beginning; watch for upcoming toll milling deals and production updates to gauge momentum.
Questions in the middle?
- What are the final refined gold quantities and revenue implications from the initial doré shipment?
- How soon will additional toll milling agreements be finalised and what volumes will they cover?
- What cost metrics and production rates can investors expect as Lucky Strike ramps up?
