Lunnon Metals Reports Robust April Cash Flow at Lady Herial Gold Mine

Strong April Performance at Lady Herial

Lunnon Metals (ASX:LM8) has reported a solid operational month at its Lady Herial open pit gold mine, delivering over 54,000 tonnes of ore grading 1.32 g/t gold, equating to 2,298 ounces, to its major shareholder Gold Fields’ subsidiary, St Ives Gold Mining Co. Pty Ltd. The company invoiced approximately $9.0 million (excluding GST, unaudited) for April’s deliveries, while operational costs directly related to the mine amounted to $3.65 million, generating robust positive cash flow.

This performance builds on the momentum from March, where the operation also generated positive free cash flow, reinforcing the mine’s economic viability despite ongoing cost pressures such as higher diesel prices. The realised gold price for April deliveries was A$6,661.62 per ounce, comfortably above the A$6,250 per ounce level assumed in the January feasibility study, helping to offset those elevated input costs. Mining progressed as planned to the 300mRL bench, with total monthly material movement exceeding 200,000 bank cubic metres.

On Track for Scheduled Completion

The Lady Herial operation is tracking to complete mining activities in August or September 2026, consistent with the original feasibility study timeline. The company reaffirmed that all material assumptions underpinning production forecasts and financial projections remain unchanged since the study’s release in January. This suggests that the project’s outlook remains stable, with no material deviations in operational or cost parameters reported so far.

Mining progress and cash flow generation have been steady, with no significant disruptions from weather or supply constraints such as diesel availability. Rehabilitation of waste dumps is also underway concurrently with mining, indicating a coordinated approach to environmental management at the site.

Resource and Reserve Base Supports Future Growth

Lunnon Metals also provided detailed updates on its Mineral Resources and Ore Reserves at Lady Herial and the nearby Hustler deposit. The total gold Mineral Resource across these areas stands at approximately 1.47 million tonnes grading 1.8 g/t gold for 84,400 ounces, inclusive of Ore Reserves. This resource base underpins the current open pit mining operation and potential future expansions.

The company’s extensive tenure in the Kambalda/St Ives district situates Lady Herial within one of Australia’s most prolific gold camps, with over 16 million ounces historically produced in the region. Lunnon Metals’ exclusive rights over gold prospects in the Foster-Baker area, combined with proximity to established processing infrastructure operated by Gold Fields, provide strategic advantages for ongoing development.

The technical credibility of the resource and reserve estimates is supported by multiple Competent Persons from the Australasian Institute of Mining and Metallurgy, ensuring compliance with JORC Code standards.

Integration with Broader Exploration Success

The Lady Herial update comes amid encouraging exploration results in the broader Foster-Baker project area. Recent drilling at Paringa West has yielded visible gold and strong intercepts, highlighting the potential for resource growth near Lady Herial. This complements the steady production profile and cash flow generation from the open pit, suggesting a pipeline of opportunities to sustain the operation beyond the current mine life.

Mining progress and positive cash flow reported in April align with earlier operational updates, including the positive March cash flow report and ongoing drilling successes in the vicinity, reinforcing the project's steady advancement within a highly prospective gold camp. 54,000 tonnes at 1.32 g/t Au and visible gold observed in RC illustrate this continuity.