Lunnon Metals Targets 1.2-2.4 Million Ounce Gold Potential with $13M Drilling Push

Record Drilling Ambition at Foster-Baker

Lunnon Metals Ltd (ASX:LM8) is set to embark on its most ambitious drilling campaign yet at the Foster-Baker area (FBA) of the St Ives gold camp, with a $13 million exploration budget approved for FY2027. The program aims to complete over 43,000 metres of combined reverse circulation (RC), diamond (DD), and aircore (AC) drilling, a volume unprecedented in the 60-year history of exploration at the FBA.

This aggressive push follows a strong operational run at Lady Herial, Lunnon's first gold discovery, which has generated enough free cash flow to leave the company debt-free and with an estimated $21 million cash balance as of June 2026. The Board is backing a two-year strategy to evaluate the gold prospectivity of an area historically overlooked for gold due to nickel-focused exploration.

A Conceptual Target of Over a Million Ounces

The company has outlined a conceptual Exploration Target for the FBA of between 25 and 30 million tonnes at grades ranging from 1.5 to 2.5 grams per tonne gold, equating to a potential 1.2 to 2.4 million ounces of gold to a conservative depth of 400 metres. Importantly, Lunnon Metals cautions that this target is conceptual; there has been insufficient exploration to define Mineral Resources beyond those previously reported at Lady Herial and Hustler, and there is no guarantee further drilling will convert this potential into resources.

The Exploration Target is grounded in the geological continuity of the FBA with the broader St Ives gold camp, which has produced around 18 million ounces of gold historically and retains approximately 12 million ounces in resources, according to public filings by major neighbours Gold Fields Ltd and Westgold Resources Ltd. However, Lunnon Metals emphasises that analogies with nearby deposits do not assure similar scale or continuity within its tenure.

Multi-Belt Strategy Across Under-Explored Ground

The FY2027 program divides drilling efforts across five gold belts within the FBA, each at different stages of exploration maturity. The Foster Gold Belt, home to Lady Herial, will receive the lion's share with over 17,000 metres planned to test 13 prospects, including resource definition drilling at Lady Herial Stage 2. The Clifton-Idough Belt, largely untouched for gold exploration, is targeted for 6,200 metres across seven high-priority conceptual targets, reflecting its structural significance and past shallow production outside Lunnon's tenure.

Other belts include the Paringa Gold Belt, with 3,500 metres planned targeting four prospects and supported by encouraging intercepts such as 8 metres at 5.52 g/t Au and visible gold observations; the Lunnon Gold Belt, a high-priority area informed by the nearby Beta Hunt Father’s Day Vein discovery, slated for over 5,300 metres across six targets; and the Cooee Gold Belt, with limited historical drilling, set for a modest 900 metres testing one prospect.

Drilling Approach and Infrastructure

Lunnon Metals will deploy a three-pronged drilling approach: targeted RC and DD testing of known prospects, extensive AC drilling for near-surface geochemical vectoring, and framework DD drilling to support 3D geological modelling. These efforts will be complemented by detailed geophysical surveys. The company notes that the FBA is fully permitted with granted mining leases extending to 2046 and benefits from significant existing infrastructure, including powerlines and haulage roads established during decades of nickel and gold mining.

The company also highlights its strong relationship with the Ngadju People, traditional owners of the land, with exploration activities planned primarily within Previously Disturbed Areas to minimise heritage impacts. New heritage surveys will be required as exploration progresses beyond these zones.

Backing from Lady Herial Cash Flow and Historical Data

Managing Director Edmund Ainscough framed the budget approval as a vote of confidence in the exploration team’s track record and the region’s geological potential: “Since the Company’s IPO we have completed over 140km of drilling, discovered and permitted the Baker nickel deposit and subsequently discovered, permitted and commenced mining gold at Lady Herial.”

Historical data reveals the FBA has been heavily drilled for nickel, over 300,000 metres, but gold-focused drilling has been sporadic and shallow, with an average depth of just 100 metres for gold-targeted holes. This leaves significant under-explored potential, particularly at depth and across belts like Clifton-Idough and Lunnon.

Recent Lunnon Metals drilling since 2024 has yielded a Mineral Resource of 1.47 million tonnes at 1.6 g/t Au for over 84,000 ounces at Lady Herial and Hustler combined, underscoring the potential for further resource growth with systematic exploration.

What Lies Ahead for Lunnon Metals

The FY2027 exploration program is a bold step into largely uncharted gold territory within a world-class camp. While the Exploration Target carries inherent uncertainty and is limited to a 400-metre depth for conservatism, the scale of drilling and the company’s strong cash position set the stage for potentially transformative discoveries. The market will be watching how assay results from this record drilling campaign align with the company’s ambitious targets, and whether Lunnon Metals can convert conceptual potential into defined Mineral Resources.