Lefroy Exploration’s (ASX:LEX) profit share mining strategy is making strong progress with the company’s inaugural toll-milling campaign and mining underway at the Lucky Strike gold mine near Kalgoorlie in Western Australia.
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Lefroy is pursuing a low-cost gold production strategy through profit share mining agreements on its shallow, high-grade gold deposits, with the 79,600 ounce Lucky Strike deposit being the first.
“From the initial execution of the mine profit share agreement with partners BML Ventures in February 2025, we are now on the threshold of generating first gold from the Lucky Strike Gold Mine within a short 12-month period,” Lefroy’s CEO, Graeme Gribbin, said, adding toll-milling at the FMR Greenfields mill in Coolgardie represents a significant milestone for Lefroy early in the year.
“With all upfront funding for the project being provided by BML, we have managed to bring Lucky Strike online with minimal risk exposure to Lefroy shareholders within the context of historically elevated spot gold prices.”
The company announced in June CY25 that a one-month toll-milling slot had been secured between profit-share partners BML and FMR, utilising the Greenfields mill.
Mr Gribbin said significant progress has been made this year at Lucky Strike with the gold mine approaching first production.
“With grade control drilling also now underway to confirm the Stage 2 south pit, we look forward to expanding the mine footprint at Lucky Strike, to mine more ounces within this strong gold price cycle,” he told shareholders.
Grade control drilling is underway, targeting the future Stage 2 south pit, and is focused on the top 50 to 60m from surface. Lucky Strike contains a resource estimate of 1.27M tonnes at 1.95 grams per tonne (g/t) for 79.6K ounces gold.
With mining underway and production on track at Lucky Strike, Lefroy is also now examining similar opportunities at Mt Martin (439,000 ounces at 1.47 g/t) as well as Burns Central (159,285 ounces at 1.18 g/t).
LEX is steady at 29.5c today. Mkt cap $69.82M.
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