Lunnon Metals Unveils High-Grade Gold Potential at Lady Herial
Lunnon Metals reports standout drilling results at Lady Herial, revealing thick, high-grade gold mineralisation beyond current open pit plans and setting the stage for expanded mining activity.
- 13m @ 9.41g/t gold intercept highlights strong down plunge potential
- Multiple thick, consistent gold zones identified northwest and below planned pit
- Regulatory approvals secured, enabling mining commencement
- Ore Purchase Agreement nearing finalisation with St Ives Gold Mining Co.
- Feasibility study update to reflect higher gold prices, boosting project valuation
Drilling Success at Lady Herial
Lunnon Metals Limited (ASX – LM8) has delivered a compelling update on its Lady Herial gold deposit, part of the Kambalda Gold & Nickel Project in Western Australia. Recent reverse circulation drilling has returned impressive gold intercepts, including a standout 13 metres at 9.41 grams per tonne (g/t) gold. These results confirm the persistence of thick, high-grade mineralisation extending down plunge to the northwest, beyond the boundaries of the current open pit design.
The drilling campaign, conducted at close spacing of approximately 8 by 6 metres, has refined the understanding of the deposit’s Upper Structure and Northwest Prospect (NWP). Both zones remain open and highly prospective beneath the planned pit, suggesting significant upside potential for future mining stages.
Regulatory and Commercial Progress
Crucially, Lunnon Metals has secured key regulatory approvals, including the Mining Proposal, Mine Closure Plan, and Native Vegetation Clearing Permit from the Western Australian Government, clearing the way for mining to commence at the company’s discretion. The company is also finalising sign-off on the detailed bench-by-bench mine design with its major shareholder and partner, St Ives Gold Mining Co. Pty Ltd (SIGM). Once this condition is met, the Ore Purchase Agreement (OPA) will become unconditional, enabling a Final Investment Decision (FID) and the execution of mining contracts.
The OPA allows for processing of Lady Herial ore at SIGM’s nearby Lefroy gold plant, leveraging existing infrastructure and expertise. This partnership is a strategic advantage for Lunnon Metals, positioning the company to efficiently bring the deposit into production.
Economic Upside and Feasibility Study Update
Building on a June 2025 Scoping Study that estimated pre-tax cash flow of approximately A$31.3 million at a gold price of A$5,000 per ounce, Lunnon Metals is updating its feasibility study to reflect a more robust gold price of at least A$6,250 per ounce. This adjustment could increase the projected pre-tax cash flow to around A$41.7 million, underscoring the enhanced economic potential of the Lady Herial open pit.
The company is also evaluating the opportunity for a second stage open pit cut-back to the northwest, which could exploit the thick, high-grade mineralisation identified in the recent drilling. This potential expansion benefits from a reduced strip ratio and may expedite regulatory approvals, as much of the area falls within an already permitted development footprint.
Strategic Outlook in the St Ives Gold Camp
Managing Director Edmund Ainscough expressed confidence in the deposit’s future, highlighting the strong foundation laid by the drilling results and the expected cash flow from the OPA. Lunnon Metals plans to aggressively pursue extensions to the Lady Herial mine plan while simultaneously targeting new discoveries across its tenements in the prolific St Ives gold camp.
The company’s broader strategy includes leveraging the success at Lady Herial to support exploration and development at its Foster-Baker gold project, aiming to self-fund a discovery program targeting significant gold deposits within this renowned Australian gold district.
Bottom Line?
With high-grade gold confirmed beyond current plans and key approvals in hand, Lunnon Metals is poised for a pivotal phase of growth at Lady Herial.
Questions in the middle?
- How will the updated feasibility study impact the timing and scale of mining at Lady Herial?
- What are the economic and operational implications of a potential second stage open pit cut-back?
- How might fluctuations in the Australian gold price influence Lunnon Metals’ development strategy?
