Lunnon Metals Unveils 30,200oz Gold Resource at Hustler, Eyes Open Pit Expansion
Lunnon Metals has announced a maiden Mineral Resource Estimate for its Hustler gold deposit, adding 30,200 ounces to its portfolio and setting the stage for potential open pit mining alongside the nearby Lady Herial operation.
- Initial Hustler Mineral Resource: 682,000 tonnes at 1.4 g/t Au for 30,200 ounces
- Group gold resource now totals 1.47 million tonnes at 1.8 g/t Au for 84,400 ounces
- Hustler deposit amenable to open pit mining with integration potential at Lady Herial
- Robust metallurgical recovery of 91% based on analogous Lady Herial test work
- Existing infrastructure and commercial agreements with major shareholder SIGM support development
A New Chapter for Lunnon Metals’ Gold Ambitions
Lunnon Metals Limited (ASX:LM8) has taken a significant step forward in its gold exploration journey with the announcement of an initial Mineral Resource Estimate (MRE) for its Hustler gold deposit, part of the Kambalda Gold & Nickel Project (KGNP) in Western Australia. The maiden resource quantifies 682,000 tonnes at 1.4 grams per tonne gold, equating to 30,200 ounces, marking Hustler as a promising new asset in the company’s growing gold portfolio.
This addition lifts Lunnon Metals’ total gold Mineral Resource to 1.47 million tonnes at 1.8 g/t Au, or 84,400 ounces, reinforcing the company’s strategic pivot from nickel to gold exploration initiated in 2024. The Hustler deposit, discovered in late 2021, is located just 400 metres southeast of the active Lady Herial open pit mine, offering logistical and operational synergies that could accelerate development timelines.
Geology and Mining Potential
Geologically, Hustler is characterised by a series of narrow, stacked gold-bearing lenses within the Defiance Dolerite, dipping gently northwest. The deposit extends approximately 460 metres along strike and 220 metres vertically, with mineralisation starting about 10 metres below surface. The near-surface nature of the deposit and its proximity to existing haul roads and mining infrastructure make it highly amenable to open pit mining.
Importantly, the company plans to integrate Hustler’s development with any second stage of open pit mining at Lady Herial, potentially sharing infrastructure and optimising operational efficiencies. This approach is supported by a binding Ore Purchase Agreement with St Ives Gold Mining Co. Pty Ltd (SIGM), a subsidiary of Gold Fields Limited and Lunnon Metals’ major shareholder, which operates the nearby Lefroy Gold Plant.
Robust Metallurgical Profile and Economic Outlook
Metallurgical test work conducted at Lady Herial, which shares similar mineralogical characteristics with Hustler, indicates a high gold recovery rate of approximately 91%. This bodes well for the economic extraction of gold from Hustler, with the company confident that the deposit will respond similarly to processing at the Lefroy facility.
Mining at Lady Herial has already commenced, with positive cash flow anticipated soon. Lunnon Metals’ Managing Director, Edmund Ainscough, emphasised that the Hustler resource adds a second significant value driver, positioning the company on the cusp of positive free cash flow. This financial strength is expected to underpin aggressive exploration and development activities across its gold and nickel assets.
Strategic Location and Historical Context
The KGNP lies within the prolific Kambalda-St Ives gold camp, a region with a rich mining history dating back to the late 19th century and over 16 million ounces of gold produced to date. The area is renowned for its world-class gold and nickel deposits, with Lunnon Metals holding 100% mineral rights over the Foster-Baker project area, excluding certain gold rights retained by SIGM in defined zones.
Hustler’s location on granted mining leases with extended terms to 2046, combined with existing agreements with the Ngadju Native Title Aboriginal Corporation, ensures a clear path for permitting and development. The company has also benefited from extensive historical data and modern drilling campaigns, totaling over 5.7 kilometres of drilling, which have informed the resource estimate and geological modelling.
Next Steps and Market Implications
Lunnon Metals is set to undertake a scoping study to evaluate the economic viability of mining Hustler, including the potential to operate concurrently with Lady Herial. This study will incorporate open pit optimisation using industry-standard software and contract mining and processing costs derived from existing agreements.
With the Australian dollar gold price near record highs and early signs of nickel price recovery, the timing could be favourable for Lunnon Metals to capitalise on its dual commodity portfolio. The company’s ability to leverage existing infrastructure and commercial arrangements with SIGM provides a competitive advantage in advancing Hustler towards production.
Bottom Line?
Hustler’s maiden resource marks a pivotal moment for Lunnon Metals, setting the stage for near-term gold production and enhanced cash flow potential.
Questions in the middle?
- How will the upcoming scoping study quantify the economic synergy between Hustler and Lady Herial mining operations?
- What drilling and metallurgical work remains to upgrade the resource classification from inferred to measured?
- How sensitive is the project’s viability to fluctuations in the Australian dollar gold price and nickel market sentiment?
