Lunnon Metals Reports Strong Hustler Infill Drilling Results

Infill Drilling Strengthens Hustler Gold Deposit

Lunnon Metals Limited (ASX:LM8) has delivered compelling assay results from a 36-hole reverse circulation (RC) infill drill program at the Hustler gold deposit, located just 400 metres from its operating Lady Herial open pit within the Foster-Baker gold project in Western Australia’s St Ives gold camp. The drilling, designed to tighten drill spacing to a nominal 20m x 20m grid and 10m x 10m in select areas, returned standout intercepts including 6.8 metres at 2.75 g/t Au and 11 metres at 2.41 g/t Au, reinforcing the continuity and grade consistency of the deposit.

These results align with the existing Mineral Resource Estimate (MRE) for Hustler and set the stage for an updated resource model. The program also included three diamond drill holes specifically for metallurgical test work, aimed at simulating processing at Gold Fields’ nearby Lefroy plant. Early results from these metallurgical holes show promising grade ranges from low to high, supporting the deposit’s amenability to established processing techniques.

Resource Update and Mining Optimisation Underway

The company is actively progressing an updated MRE for Hustler, alongside open pit optimisation studies that consider mining Hustler concurrently with the Lady Herial cut-back (LDH2). Preliminary indications suggest that combining these pits could reduce unit operating costs compared to the current Lady Herial pit, which is smaller in volume and higher grade. Lunnon Metals is also reviewing the mining schedule in light of recent Australian dollar gold price movements, weighing the merits of parallel versus sequential mining operations.

Permitting activities are advancing in parallel, with optimisation shells from the study guiding the development footprint and associated survey and approval requirements. The company maintains a strong dialogue with Gold Fields Limited regarding the existing Ore Purchase Agreement (OPA) for Lady Herial and is exploring collaborative opportunities for Hustler and LDH2.

Strategic Positioning in a Prolific Gold Camp

The Foster-Baker project sits in the heart of the St Ives gold camp, one of Australia’s most prolific gold-producing regions. Lunnon Metals holds 100% of the gold rights in the area, excluding specific “Excluded Areas” retained by SIGM, a Gold Fields subsidiary. The proximity to established processing infrastructure such as the Lefroy plant, owned by Gold Fields, provides a strategic advantage for advancing these deposits efficiently.

Managing Director Edmund Ainscough emphasised the company’s nimble approach, noting the swift progression from discovery to development at Lady Herial sets a strong precedent for Hustler. He highlighted the team’s readiness to capitalise on opportunities of varying scale as exploration continues in the district.

What Lies Ahead for Hustler and Foster-Baker

Lunnon Metals’ next steps include finalising the Hustler MRE update and completing the scoping study that will integrate findings from the infill drilling, metallurgical test work, and mining optimisation. These outputs will be crucial in determining the project's economic viability and informing future development decisions.

While the assay results de-risk Hustler and suggest promising development potential, the timing and outcome of ongoing commercial negotiations with Gold Fields remain to be seen. The company’s ability to leverage its operating experience at Lady Herial and optimise combined mining operations could be pivotal in unlocking value from these adjacent deposits.