Lunnon Metals has reported strong gold intersections from 36 holes at its Foster-Baker project, including a standout 1 metre at 80.80 g/t gold at Hustler and broader mineralisation at Koombana. The results will feed updated resource models before a scoping study considers whether the two deposits could support future mining alongside a Lady Herial cut-back.
- $13 million FY2027 exploration program underway
- 1m at 80.80 g/t gold at Hustler
- 22m at 3.31 g/t gold at Koombana
- More than 70 intercepts above 0.5 g/t gold
- Scoping study deferred pending resource updates
High-Grade Hustler Results Strengthen Development Pipeline
A single metre grading 80.80 g/t gold has emerged from Lunnon Metals Limited (ASX:LM8) drilling at Hustler, the sharpest result in a batch of results that also included 4 metres at 7.00 g/t, 2 metres at 14.48 g/t and 3.62 metres at 10.80 g/t gold. The assays came from 17 new holes across infill, step-out and geotechnical drilling near the completed Lady Herial open pit.
Hustler already carries a 36,200-ounce Mineral Resource, with all of it within 235 metres of surface, although the company describes the deposit as modest grade in its current form. The latest drilling is intended to support permitting and technical evaluation rather than establish a new resource immediately. Lunnon Metals says the reported widths are expected to approximate true widths based on its current interpretation of the mineralisation.
Koombana Shows Broad Near-Surface Mineralisation
At Koombana, 19 reverse-circulation holes drilled on a broad 20 metre by 20 metre spacing returned a different but potentially complementary style of result. Highlights included 22 metres at 3.31 g/t gold, 5 metres at 3.91 g/t, 10 metres at 1.53 g/t and 19 metres at 0.94 g/t.
The company also reported deeper intersections beyond 150 metres, including 3 metres at 2.10 g/t, 1 metre at 9.11 g/t and 5 metres at 1.61 g/t gold. Koombana sits about 300 metres south-east of Hustler along the same Defiance Dolerite-hosted mineralised trend as Lady Herial. Lunnon Metals says the deeper results indicate that mineralised shoots continue at depth, but Koombana remains at an earlier definition stage.
43,000 Metres of Drilling Targets FBA Growth
The results form part of a $13 million FY2027 exploration program covering 43,000 metres of drilling across the Foster-Baker gold project in Western Australia’s St Ives camp. From the 36 holes reported, the company recorded more than 70 significant intercepts above its 0.5 g/t gold reporting cut-off.
The program is designed to balance conceptual exploration targets with definition drilling at known deposits. Lunnon Metals retains a project-wide Exploration Target of approximately 25 million to 30 million tonnes at 1.5 g/t to 2.5 g/t gold, representing a conceptual potential gold content of 1.2 million to 2.4 million ounces to a depth of 400 metres. That estimate is not a Mineral Resource or Ore Reserve, and the company cautions that further exploration may not result in any additional resource being established.
Resource Updates Push Scoping Study Back
The immediate commercial question is whether Hustler and a potential second-stage Lady Herial cut-back, known as LDH2, can be evaluated as a combined mining opportunity. Lunnon Metals says concurrent mining could potentially reduce unit mining rates and support discussions with St Ives Gold Mining over a blended production profile and an Ore Purchase Agreement, but no new agreement or development decision has been announced.
A scoping study was close to completion at an accuracy level of plus or minus 30%, but has been deferred until the Hustler and LDH2 Mineral Resource models are updated with the latest drilling. The study will then be finalised, alongside further work on operating costs, permitting, waste-rock characterisation, mine footprints and metallurgical testing suited to the nearby Lefroy plant.
Bottom Line?
The drilling has added geological support to Lunnon Metals’ post-Lady Herial pipeline, but the next valuation test is not another isolated high-grade hit. It is whether updated resources and the delayed scoping study can convert Hustler and LDH2 into a credible, permitted mining scenario.
Questions in the middle?
- How much will the Hustler and LDH2 resource updates change the scale and grade of the deposits?
- Can Koombana’s near-surface widths and deeper extensions support a future Mineral Resource?
- What operating rates and commercial terms could emerge from potential concurrent mining and processing through the Lefroy plant?