New Gold Zones Near Lady Herial Could Shift Open Pit Plans

Context and Location

Lunnon Metals Limited (ASX: LM8) has provided an update on its ongoing exploration and pre-development activities at the Lady Herial gold deposit, part of the broader Kambalda Gold & Nickel Project (KGNP) in Western Australia. Lady Herial, discovered in early 2024, is a shallow, high-grade gold deposit with a current Mineral Resource Estimate (MRE) of 0.57 million tonnes at 1.6 grams per tonne gold, containing approximately 29,000 ounces of gold. The deposit is situated on granted mining leases with ready access to infrastructure, positioning it well to capitalise on the prevailing strong Australian dollar gold price environment.

Sterilisation Drilling Reveals New Gold Structure

In a recent reverse circulation (RC) sterilisation drilling program designed to ensure that future surface infrastructure does not encroach on economic mineralisation, Lunnon Metals intersected significant gold mineralisation at a new prospect dubbed LDH Northwest. Located just 100 metres northwest of the Lady Herial deposit, the program returned intercepts of 15 metres at 1.73 grams per tonne gold and 8 metres at 1.14 grams per tonne gold. These results suggest the presence of a new stacked gold structure analogous to the mineralisation style seen at Lady Herial and other prospects within the Foster Gold Belt.

The LDH Northwest prospect appears to extend the known mineralised system laterally, offering potential for resource growth at shallow depths. Notably, one drill hole ended in mineralisation, indicating that the structure remains open and warrants further drilling to delineate its full extent.

Supporting Geotechnical Drilling and Resource Implications

Complementing the sterilisation program, a geotechnical diamond drilling campaign returned a high-grade intercept of 1 metre at 13.41 grams per tonne gold. This data will inform slope stability and wall angle parameters critical for open pit mine design and optimisation. The company plans to incorporate this intercept into future updates of the Lady Herial MRE.

Managing Director Edmund Ainscough emphasised the strategic importance of completing sterilisation drilling early to optimise infrastructure placement and enable rapid follow-up drilling. The company is actively pursuing permitting to facilitate open pit mining, with the flexibility to adjust plans as new data emerges.

Regional Significance and Infrastructure Advantage

The Foster Gold Belt, hosting Lady Herial and the LDH Northwest prospect, is part of the prolific Kambalda/St Ives gold camp, renowned for its significant gold production history and ongoing exploration success. Lunnon Metals holds 100% of the gold rights in the Foster-Baker project area, with nearby processing facilities operated by major shareholder Gold Fields Ltd. This proximity to established infrastructure enhances the economic potential of the project.

The discovery of the LDH Northwest structure reinforces the prospectivity of the Defiance Dolerite host rock and the broader Foster Gold Belt, where stacked, shallow-dipping gold mineralisation has been consistently encountered over a strike length exceeding 1.8 kilometres.

Next Steps and Market Outlook

Lunnon Metals is planning follow-up drilling at LDH Northwest to better define the new mineralised zones and assess their potential contribution to the overall resource base. Concurrently, permitting activities for Lady Herial’s open pit development are advancing, aiming to leverage the current favourable gold price environment and existing infrastructure to expedite project development.

While the new drilling results are encouraging, the company remains cautious, noting that further work is required to confirm the economic viability of the LDH Northwest prospect. Investors will be watching closely for updates on resource growth and permitting progress in the coming months.