Could Paringa West’s New Gold Structure Transform Lunnon Metals’ St Ives Prospects?

Significant Gold Intercepts at Paringa West

Lunnon Metals Limited (ASX – LM8) has announced compelling results from recent reverse circulation drilling at its Paringa West prospect, part of the Foster-Baker Project located within the world-class St Ives gold camp in Western Australia. The standout intercept includes 8 metres grading 5.52 grams per tonne (g/t) gold from 65 metres depth, alongside a 6-metre intercept at 1.49 g/t gold. These results confirm a new geological interpretation of a gently northwest dipping mineralised structure that better explains multiple significant intercepts drilled earlier in 2024.

Reinterpreting the Gold Potential

Earlier drilling suggested a north-south trend of mineralisation, but recent analysis indicates multiple mineralised shoots intersecting obliquely with a steep westerly dip. The new model proposes a more coherent, gently northwest dipping structure, which was tested by three new drill holes spaced 80 metres apart. Two of these holes intersected significant gold mineralisation, reinforcing the prospectivity of Paringa West. This reinterpretation aligns with structural features observed in nearby historic mines such as Victory and Revenge, known for their major gold-bearing structures.

Strategic Location and Infrastructure Advantage

Paringa West lies within Lunnon Metals’ 23 square kilometre tenement package in the heart of the St Ives camp, which has produced over 16 million ounces of gold historically. The prospect is hosted in Upper Paringa Basalt, the same rock unit that hosts the nearby 1 million ounce Hamlet-Athena complex. The company’s Managing Director, Edmund Ainscough, highlighted the underexplored nature of their leases, noting that previous nickel-focused exploration left gold potential largely untapped. Lunnon Metals benefits from a recently executed processing agreement with St Ives Gold Mining Co Pty Ltd, enabling potential future ore from Lady Herial and other prospects to be processed at the nearby Lefroy plant operated by Gold Fields.

Advancing Exploration Amidst a Rich Gold Camp

With regulatory approvals secured for Lady Herial and ongoing high-priority drilling programs, Lunnon Metals aims to rapidly advance Paringa West alongside other targets such as the Northwest Prospect. The company’s dual strategy focuses on defining a replacement or extension of Lady Herial while aggressively exploring for a major new gold discovery within its tenements. The recent drilling success at Paringa West adds momentum to this approach, suggesting that significant gold mineralisation remains to be discovered beneath the surface in this historically prolific region.

Looking Ahead

While the true widths of the mineralised intercepts remain approximate and further drilling is required to fully delineate the new structure, the Paringa West results underscore the potential for meaningful gold discoveries on Lunnon Metals’ ground. Metallurgical characteristics are assumed to be similar to Lady Herial, but dedicated test work will be necessary to confirm this. Investors and analysts will be watching closely as the company progresses its exploration programs and updates its resource estimates in the coming months.