Lefroy Exploration has launched a scoping study for its Mt Martin Gold Project, following an updated resource estimate of 460,000 ounces. The study, funded by a recent $3.6 million placement, aims to assess development options by September 2026 while mining operations at Lucky Strike prepare to resume.
- Mt Martin Gold Project scoping study underway
- Updated resource estimate of 460,000 ounces gold
- $3.6 million placement funds accelerated evaluation
- Study to evaluate mining, processing, infrastructure, economics
- Lucky Strike mining partner approved to expand dewatering
Mt Martin Scoping Study Kicks Off
Lefroy Exploration (ASX:LEX) has initiated a scoping study for its wholly owned Mt Martin Gold Project in Western Australia's Eastern Goldfields. This move follows an updated Mineral Resource Estimate (MRE) that pegged the deposit at 9.1 million tonnes grading 1.6 grams per tonne gold, containing 460,000 ounces. The study, led by the Measured Group, is designed to explore potential development pathways including open pit mining, processing options, infrastructure needs, and project economics.
Funded by a recent $3.6 million placement, the study aims for completion by the end of September 2026. It will provide Lefroy with a preliminary technical and economic assessment to guide decisions on advancing Mt Martin towards potential development and production. However, Lefroy cautions that the study’s outcomes are preliminary and not sufficient for production decisions without further technical, environmental, and regulatory work.
Capital Raise Supports Accelerated Evaluation
The $3.6 million capital injection, announced in May, strengthens Lefroy’s balance sheet and accelerates evaluation activities at Mt Martin. This funding will also support ongoing technical studies and broader exploration within Lefroy’s portfolio, which boasts over one million ounces of JORC-compliant gold resources across multiple deposits. The Mt Martin resource update and scoping study align with the company’s strategy to systematically grow and unlock value from its high-grade gold assets.
Lucky Strike Operations Prepare for Mining Resumption
Meanwhile, Lefroy’s Lucky Strike gold deposit continues to progress under a profit share arrangement with mining partner BML Ventures. After positive assay results from recent grade control drilling, BML has extracted over 1.3 million bank cubic meters of waste to date. However, increased groundwater inflows have recently slowed waste movement.
In early June, BML secured environmental approval to construct a 2.5-kilometre dewatering pipeline, which will significantly improve groundwater management. This infrastructure upgrade is expected to enable the resumption of grade control drilling in July and full-scale mining early in the September quarter, supporting Lefroy’s near-term production ambitions.
Strategic Growth Anchored by Resource Base
Lefroy’s Managing Director Graeme Gribbin highlighted the scoping study as a key milestone in advancing its portfolio of gold assets. With a combined resource base exceeding one million ounces, Lefroy is positioning itself for future growth and value creation. Pending assay results from ongoing drilling at Mt Martin and cash flow from Lucky Strike’s profit share are expected to further inform the company’s development strategy.
The scoping study will incorporate pit optimisations, mine design, production scheduling, economic modelling, geotechnical assessments, metallurgical test work, and infrastructure planning. These comprehensive inputs aim to clarify the project’s viability and potential next steps, while acknowledging that further studies and approvals remain necessary before any development decisions.
Bottom Line?
Lefroy’s Mt Martin scoping study and Lucky Strike operational upgrades position the company for pivotal development decisions by late 2026, but significant technical and regulatory hurdles remain.
Questions in the middle?
- Will the Mt Martin scoping study support a viable development case by September 2026?
- How will pending assay results from resource extension drilling impact Mt Martin’s economics?
- What production ramp-up timeline can be expected once Lucky Strike mining fully resumes?