Lunnon ramping up Lady Herial development after overcoming recent weather issues

Lunnon Metals (ASX:LM8) has overcome recent weather issues and is preparing for the processing of the first batch of gold ore from the Lady Herial project in Western Australia.

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Following the completion of the Lady Herial feasibility study and confirmation of an ore purchase agreement (OPA) with major shareholder St Ives Gold Mining, the Lunnon board approved the final investment decision for the project in mid-January 2026, allowing mining contracts to be executed and mining to commence.

Despite some wet weather earlier this month, mining is now progressing well at the company’s first gold mine, with inaugural gold ore collected by Gold Fields for processing under a tolling agreement.

Lunnon’s managing director, Edmund Ainscough, reported that since operations commenced, a total of 38,287 tonnes has been mined at 1.56 grams per tonne (g/t) for over 1,750 ounces of gold. He also revealed the company is ramping up its plans to grow the Lady Herial resource.

“The broader Lady Herial structural system continues to grow and now encompasses the three structures (upper, middle and lower) currently being mined in the open pit, the NWP and Agnes to the northwest, as well as Hustler just 400m to the southeast,” he said.

“These mineralised gold structures are displaying plunge lengths of over 500m, and the system shows great continuity at depth, plunging towards our nickel mineral resources hosted at the Foster nickel mine.

“This opens up the exciting potential for future exploitation from underground, both gold and nickel, after the open-pit mining phase has concluded.”

Mr Ainscough said that with mining in full swing, the Lunnon exploration team is fully focused on defining a new project to complement Lady Herial in the company’s production schedule, while in parallel seeking to make a significant discovery on its leases in the heart of the St Ives gold camp.

He also reported that to date, there has been no negative impact relating to the availability of diesel; however, the Australian company is monitoring the impact that price fluctuations may have on operating costs.

“The company is liaising closely with its mining contractor, Hampton Mining and Civil Services and SIGM to keep abreast… and has been advised that mining activities are currently expected to continue as planned.”

LM8 is up +4.23% to 37¢ today. Mkt cap $79.28M.

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