Lefroy Secures Approvals, Targets 79,600oz Gold Production Starting March 2026
Lefroy Exploration has secured final approvals for the Lucky Strike Gold Mine, setting an accelerated timeline for mining and first gold production by March 2026. Partnering with BML Ventures, the company is poised to transition into gold production with strong financial backing.
- Final Mine Development and Closure Plan and clearing permit approved
- Mining activities to start November 2025 with site clearing and pre-strip
- First ore toll milling scheduled for February 2026 at FMR Greenfields Mill
- Profit share partner BML funding pre-mining and operational costs
- Lucky Strike deposit holds 79,600 ounces of gold resource
Final Approvals Clear Path for Lucky Strike Mine
Lefroy Exploration Limited (ASX – LEX) has reached a significant milestone with the Department of Mines, Petroleum and Exploration (DMPE) approving its Mine Development and Closure Plan (MDCP) for the Lucky Strike Gold Deposit. Alongside the clearing permit for mining tenement M25/366, these approvals unlock the pathway for mining operations to commence as early as November 2025.
Partnership with BML Ventures Drives Operational Momentum
The company’s profit share partner, BML Ventures Pty Ltd, a seasoned mining contractor based in Kalgoorlie, will lead all onsite activities. BML is set to begin site clearing and pre-strip mining activities this November, laying the groundwork for the accelerated development timeline. This partnership not only brings operational expertise but also financial support, with BML prefunding all pre-mining, capital, and operational costs.
Accelerated Timeline to First Gold Production
The accelerated schedule targets first ore toll milling at FMR Investments’ Greenfields Mill in Coolgardie by February 2026, with initial gold production expected shortly after in March. This rapid progression from earthworks to milling underscores Lefroy’s strategic focus on swift commercialisation of its shallow, high-grade gold resources.
Robust Resource Base and Strong Financial Position
The Lucky Strike Gold Deposit boasts a mineral resource estimate of approximately 79,600 ounces of gold, combining both indicated and inferred categories. Lefroy’s financial position is reinforced by a $2.5 million profit cash advance facility from BML, with $1.25 million already drawn down, ensuring liquidity as the project advances toward production and profit distribution expected within the first half of 2026.
Looking Ahead – Unlocking Value and Growth Potential
With the Lucky Strike project moving into operational mode, Lefroy is positioning itself as a first-time gold producer in a buoyant market. The company’s broader Lefroy Project portfolio, including significant resources at Mt Martin and Burns Central, offers further upside potential through similar profit share arrangements and ongoing exploration. This phase marks a pivotal transition from exploration to production, setting the stage for sustainable growth and value creation.
Bottom Line?
Lefroy’s swift move to production at Lucky Strike signals a promising start to 2026, but execution and market conditions will be key to unlocking full value.
Questions in the middle?
- How will actual production and grade compare to resource estimates at Lucky Strike?
- What are the terms and potential risks associated with the profit share and cash advance agreements with BML?
- Can Lefroy replicate this accelerated development model at its other deposits like Mt Martin and Burns Central?
