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- Thick, high-grade gold results confirm consistent mineralisation across the Lady Herial extensions
- Standout intercepts include 16m at 9.14 g/t Au and 10m at 4.45 g/t Au
- Structure mineralisation continues from base of completed open pit into cut-back target area
- Northwest prospect could materially reduce strip ratio and improve cut-back economics
Lunnon Metals (ASX: LM8) has received positive indications from the company’s exploration program at the Foster-Baker gold project (FBA) in Western Australia.
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FBA is located in the middle of the prospective St Ives gold camp, a district that has produced over 18 million ounces (Moz) of gold mined since modern production commenced in the early 1980s.
The company’s $13 million, 43,000m FY2027 drill program is advancing a balanced portfolio of early-stage conceptual targets in under-explored areas in search of a significant discovery whilst definition work is progressing more advanced near surface deposits down plunge of the recently completed first stage of mining at the Lady Herial open pit.
Results have been returned from the drilling of 25 reverse circulation (RC) holes at Lady Herial which targeted the northwest extensions of this mineralised gold system.
The program included infilling the Upper Structure, which was successfully mined in the first stage of open pit mining and the Northwest Prospect (NWP), which sits above it. Both these gold structures start from between approximately 25m and 45m below the current surface.
The program’s objective was to reduce the drill spacing on the known gold mineralisation inside the existing mineral resource, to better than an approximate 20m by 10m spacing, thereby improving geological and grade estimation confidence, and if successful, increasing the category of the mineralisation from Inferred to Indicated and potentially Indicated to Measured.
“Any potential for a cut- back at Lady Herial relies on three key parameters, the future A$ gold price assumed to prevail at the time of planned mining, the cost to remove the overburden to get to the inevitably deeper gold mineralisation and lastly, but most importantly, the grade of, and confidence in, the mineral resource estimate,” MD, Edmund Ainscough, said.
“We could not drill these holes for safety reasons during the active mining operations, so have had to sit tight and wait until mid-August to get going, but our patience was worthwhile. The highlighted intercepts on the NWP will potentially assist any open pit optimisation drive down through the overburden to the NWP, and then potentially onto the Upper Structure.
“The first stage of Lady Herial mining was a success primarily because we did such a thorough job of defining the geology and gold mineralisation, and hence de-risking the project to the greatest extent possible. The success of that approach naturally sets the template we look to follow moving forward.”
The company is looking to finalise Scoping Study analysis in early December 2026.
LM8 is up 1.59% to 32.0¢. Mkt cap $71.63M.
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