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- Board approves $13 million exploration budget
- Expanded program to evaluate the gold prospectivity at St Ives
- Aiming to complete over 43km of drilling
- Represents the most metres drilled in a single year in FBA’s 60-year history
Lunnon Metals (ASX:LM8) is gearing up for a major gold exploration campaign at the Foster-Baker gold project (FBA), located in the middle of the highly prospective St Ives gold camp in WA.
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Backed by a strong return from successful open pit mining at the company’s first gold discovery, Lady Herial, Lunnon’s board has approved a FY2027 exploration budget committing $13.0 million to the FBA.
This budget is the first part of a two-year program to fully evaluate the gold potential of the FBA, an area that has been significantly under-explored for gold due to the area’s historical focus on nickel.
The FBA is a coherent geological package that is contiguous with and was subject to the same Archaean-aged gold mineralisation event as, the broader St Ives gold camp it is hosted within.
The area plays host to prospects/targets at differing stages of exploration maturity ranging from conceptual through to resource definition.
To assist in planning and prioritising the FY2027 exploration activities the company has released an exploration target covering the FBA of between approximately 25 to 30 million tonnes for a potential gold content of between 1.2 to 2.4 million ounces to a depth of 400m.
Grades applicable to the exploration target range between 1.5 grams per tonne (g/t) and 2.5 g/t.
MD, Edmund Ainscough, said the cash flow from Lady Herial has positioned the company to back its successful site exploration team to deliver further mineral resource growth and potentially a significant new discovery.
“Since the company’s IPO we have completed over 140km of drilling, discovered and permitted the Baker nickel deposit and subsequently discovered, permitted and commenced mining gold at Lady Herial,” he said.
“In approving the FY2027 budget, the Board recognises this track record, understands that our tenements sit within the historic and productive St Ives gold camp and supports the team in its goal of delivering further significant exploration success to the benefit of all our stakeholders over the coming years.”
Mr Ainscough said the company believes there is significant gold mineralisation present at the St Ives gold camp at depths far greater than 400m.
LM8 is up 3.45% to 30.0¢. Mkt cap $67M.
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