Lunnon Metals Reports $13.3M Cash, Advances Lady Herial and Nickel Assets

De-risking and Commercial Milestone at Lady Herial

Lunnon Metals Limited (ASX, LM8) has reported significant progress in the September 2025 quarter, marking a major step forward in the development of its Lady Herial gold deposit. The company has largely completed de-risking activities through extensive grade control drilling, confirming thick, high-grade, and shallow gold mineralisation consistent with previous models. This groundwork sets the stage for imminent mining operations.

Crucially, Lunnon Metals executed an Ore Purchase Agreement (OPA) with Gold Fields Ltd, its major shareholder holding 30.15%, securing a 70% share of future free cash flow from Lady Herial. This agreement not only validates the project’s economic potential but also provides a clear pathway to monetisation via processing at Gold Fields’ nearby Lefroy plant, just 7.5 kilometres from the deposit.

Financial Strength and Exploration Momentum

With a robust cash balance of $13.3 million as of 30 September 2025, Lunnon Metals is well-positioned to fund ongoing permitting, technical studies, and aggressive exploration programs. The company drilled nearly 16 kilometres during the quarter, focusing exclusively on gold at the Foster-Baker project, while also advancing nickel asset evaluations.

Exploration success extended beyond Lady Herial, with promising assay results from the Hustler and Plentiful prospects. Hustler, located just 400 metres from Lady Herial, shows structural similarities and potential for a significant resource, while Plentiful’s drilling revealed gold mineralisation extending deeper than previously known, enhancing its prospectivity.

Nickel Assets Confirmed Economic

Complementing its gold focus, Lunnon Metals updated its Nickel Assets Scoping Study for the Baker and Foster mines. The study confirms Baker’s robust economics at current nickel prices, projecting a pre-tax free cash flow of approximately $70 million and a net present value of $50 million. Foster is currently break-even but remains strategically important given nickel’s market dynamics and proximity to infrastructure.

Regulatory and Shareholder Approvals Pending

The company is awaiting regulatory approvals from the Western Australian Department of Mines, Petroleum and Exploration for mining at Lady Herial, expected in the December quarter. Additionally, a General Meeting is scheduled for 6 November 2025 to seek shareholder approval of the OPA with Gold Fields. These approvals are critical milestones before mining can commence and ore deliveries begin under the OPA terms.

Managing Director Edmund Ainscough highlighted the strategic importance of the agreement and the timing, noting the all-time high Australian dollar gold price exceeding A$6,000 per ounce. He emphasised the company’s dual focus on delivering near-term cash flow from Lady Herial while aggressively pursuing new discoveries within its 23 kilometres of tenements in the prolific St Ives gold camp.

Looking Ahead

In the coming quarter, Lunnon Metals plans to update the Mineral Resource estimate for Lady Herial, finalise mine design and scheduling, and secure mining contracts. Exploration will continue with targeted drilling programs, including government co-funded initiatives, to expand the development pipeline beyond Lady Herial. The company’s disciplined financial management and strategic partnerships position it well to capitalise on both gold and nickel market opportunities.