Lunnon Metals Uncovers New Gold Zone at Lady Herial Northwest

Expanding the Lady Herial Gold System

Lunnon Metals Limited (ASX, LM8) has announced encouraging gold assay results from follow-up drilling at the Lady Herial Northwest (LDH Northwest) structure, part of its Kambalda Gold & Nickel Project in Western Australia. The recent reverse circulation drilling has confirmed the presence of a stacked gold mineralisation system, with multiple intercepts exceeding 1 gram per tonne (g/t) gold, including standout intervals such as 15 meters at 2.19 g/t Au and 12 meters at 2.19 g/t Au.

This newly identified LDH Northwest structure lies adjacent to the previously defined Lady Herial deposit and mirrors its broad, stacked gold mineralisation pattern. While the vertical separation between LDH Northwest and the existing open pit footprint means these results will not materially alter the current pit design, they open the door to potential underground development opportunities accessible from the future northwest pit wall.

Permitting and Development Momentum

Despite the discovery of this additional mineralised zone, Lunnon Metals is maintaining an aggressive permitting schedule to enable timely open pit mining of the Lady Herial deposit. The company is preparing to submit its Mining Proposal, Mine Closure Plan, and Native Vegetation Clearing Permit to the Western Australian Department of Mines, Petroleum and Exploration. This approach underscores the company's focus on fast-tracking development while keeping options open for future exploitation of the LDH Northwest mineralisation.

Negotiations with major shareholder Gold Fields Ltd regarding an ore sale and purchase agreement are progressing well. Completion of this agreement is expected to be a significant milestone, potentially unlocking synergies with Gold Fields’ nearby Lefroy processing plant, which could enhance operational efficiencies and economic returns.

Economic Outlook Supported by Scoping Study

The Lady Herial deposit currently hosts a Mineral Resource of 0.57 million tonnes at 1.6 g/t gold for approximately 29,000 ounces. A recent Scoping Study indicated that a modest-sized, low strip ratio open pit could yield 300,000 to 320,000 tonnes of ore grading around 1.8 g/t Au, containing about 18,000 ounces of gold. At a gold price of A$5,000 per ounce, this pit could generate roughly A$45 million in free cash flow on a 100% basis, highlighting the project's strong economic potential amid a favourable gold price environment.

Managing Director Edmund Ainscough expressed confidence in the broader Foster Gold Belt, noting that the Lady Herial system appears larger than initially thought and that the region remains underexplored. He emphasized the company’s commitment to advancing the open pit development while continuing to explore for further significant discoveries.

Strategic Position in a Prolific Gold Camp

The Kambalda/St Ives district, where the KGNP is located, is one of Australia’s most prolific gold and nickel camps, with a rich history of production and discovery. Lunnon Metals’ tenements benefit from proximity to established infrastructure and processing facilities, including those operated by Gold Fields. The company holds 100% rights to gold in the Foster-Baker area, positioning it well to capitalise on ongoing exploration success and development opportunities.

With over 20.9 kilometres of drilling completed since early 2024 and a comprehensive historical core program, Lunnon Metals is steadily building a robust geological understanding of its assets. The recent results at Lady Herial Northwest add to this momentum, reinforcing the potential for both near-term production and longer-term resource growth.