Lunnon Metals Reports High-Grade Gold Intercepts Up to 13.15g/t at Lady Herial
Lunnon Metals reports significant high-grade gold assay results from the Lady Herial deposit, confirming promising mineralisation below and within the planned open pit. The company advances towards regulatory approvals and a final investment decision.
- Significant gold intercepts in ‘shadow’ zones below planned open pit
- High-grade infill drilling supports current mine design
- Feasibility study underway with improved project valuation at higher gold prices
- Ore Purchase Agreement with major shareholder St Ives Gold Mining Co. in place
- Regulatory approvals pending to enable mining commencement
Exploration Success at Lady Herial
Lunnon Metals Limited (ASX – LM8) has released encouraging assay results from its Lady Herial gold deposit, part of the Kambalda Gold & Nickel Project in Western Australia. Recent reverse circulation drilling has returned significant gold intercepts both within the current open pit design and in the so-called ‘shadow’ area beneath future pit walls, which will be inaccessible once mining begins.
Notable results include intercepts such as 13 metres at 3.28 grams per tonne gold and 10 metres at 1.74 grams per tonne gold in the shadow zone, alongside high-grade infill results within the planned pit, including 5 metres at an impressive 13.15 grams per tonne. These findings reinforce the deposit’s robust grade continuity and potential for extended mining.
Strategic Implications and Next Steps
The company is awaiting regulatory approvals for its Mining Proposal and associated environmental permits, which once granted, will allow clearing and open pit mining to commence. Lunnon Metals is concurrently progressing a Feasibility Study, building on a June 2025 Scoping Study, with updated financial models reflecting higher gold prices. At a gold price of $5,750 per ounce, the project’s pre-tax valuation increases to approximately $39 million, rising further at current spot prices.
Additionally, Lunnon Metals has executed an Ore Purchase Agreement with its major shareholder, St Ives Gold Mining Co. Pty Ltd, securing processing capacity at the nearby Lefroy plant. This agreement is expected to provide a significant cash flow boost, enabling the company to pursue further exploration and development opportunities.
Potential for Further Upside
The drilling results confirm that the Upper Structure and the Northwest Prospect remain open down plunge and beyond the current mine design. Lunnon Metals is evaluating options to exploit this upside, including potential underground mining or a second stage open pit following the initial mining phase. The company’s Managing Director, Edmund Ainscough, highlighted the importance of testing these zones before they become inaccessible and expressed confidence in the project’s economic potential amid a favourable gold price environment.
The Lady Herial deposit sits within the prolific Kambalda/St Ives gold camp, a region with a rich history of gold production and exploration. Lunnon Metals’ broader strategy includes leveraging this success to self-fund discovery programs targeting significant gold deposits in the district.
Bottom Line?
With regulatory approvals on the horizon and a strong feasibility study underway, Lunnon Metals is poised to unlock further value from Lady Herial’s promising gold mineralisation.
Questions in the middle?
- When will the Western Australian Government grant the necessary mining and environmental approvals?
- How might the feasibility study results influence the final mine design and production schedule?
- What is the potential scale and timing for exploiting the ‘shadow’ zone mineralisation via underground or extended open pit mining?
