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Lefroy Exploration’s (ASX:LEX) share price is up +10% on news that it has produced its first gold doré bar at the Lucky Strike mine near Kalgoorlie, highlighting the upside of the company’s evolving toll milling strategy.
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The first three gold doré bars have now been shipped to the Perth Mint refinery for completion of final refining. Those three bars weighed 27.2 kilograms in total, for an estimated 584 ounces of gold.
Lefroy’s chief executive, Graeme Gribbin, said this month’s pouring of the first gold doré bars at Lucky Strike comes after several years of effort.
“It is a culmination of 10 years hard work by past and present Lefroy employees and management, from early exploration efforts, formulation of the first mineral resource estimate, through to more recent collaborations with BML ventures to facilitate funding and commencement of first production,” he said.
“Together with past and present shareholders and investors of Lefroy, whose funding and support have made this possible, I am pleased that the company is now on the brink of delivering significant value to current shareholders, not just from Lucky Strike, but through realising value from our million-ounce gold resource base across the broader Lefroy project.”
Lucky Strike is an initial example of Lefroy’s profit share mining strategy, which is pursuing low-cost production through agreements on its shallow, high-grade gold deposits, with the 79,600oz deposit the first of such agreements.
With production underway, Lefroy is also examining similar opportunities at Mt Martin (439Koz at 1.47 g/t) and Burns Central (159.2Koz at 1.18 g/t).
In the meantime, additional ore stocks are awaiting processing at the Greenfields mill in Coolgardie, along with further ore stocks located at the Lucky Strike ROM pad, for imminent haulage to Coolgardie. The milling campaign is scheduled to be completed towards the end of February, Lefroy also confirmed.
Mine profit share partner BML Ventures has been collaborating with Lefroy to secure the next series of toll milling campaigns for Lucky Strike.
LEX is up +10%, to 27.5c. Mkt cap $60.19M.
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