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- June 2026 best month to date at Lady Herial gold open pit
- Over 62,000 tonnes for 3,473oz delivered to Gold Fields
- $12m payment received from Gold Fields for gold mined in June
- Two months of operations and gold deliveries remaining
Lunnon Metals (ASX:LM8) has achieved a record number in production activities at the Lady Herial open pit gold mine in WA up to the end of June 2026.
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MD, Edmund Ainscough, said open pit operations continued to run to plan throughout the month – although three days were lost due to rain.
“Over recent months we have been able to step back and complete a thorough review of the discovery potential on the 23 sq. km we hold in the heart of the 18Moz St Ives gold camp,” Mr Ainscough said.
“Now, with an estimated cash balance at 30 June 2026 of over $21 million, we have in turn been able to announce our FY2027 exploration budget whilst management has wrapped targets and goals around what that actual discovery potential might be.
“Lady Herial, our first gold discovery, has just a few months left but the mine has recharged our cash, reinvigorated the team and put us in the best possible position to seek to ensure that this gold deposit is not our last gold discovery.”
Total volume mined for the month was just over 106,000 bank cubic metres and total ore mined was over 62,000 tonnes at 1.73 grams per tonne (g/t) for 3,473 ounces of contained gold.
The ore purchase agreement (OPA) with Gold Fields subsidiary, St Ives Gold Mining (SIGM), continues to operate seamlessly. To date, nearly 207,000 tonnes and 1.59 g/t for 10,561 ounces has been delivered to SIGM, yielding 9,613 ounces of gold at the 91% metallurgical recovery agreed in the OPA.
For the month of June 2026, SIGM paid Lunnon Metals approximately $12 million whilst outgoing expenses directly related to the Lady Herial operation for the same period totalled approximately $3 million.
Lady Herial operations are expected to be completed in August/September, in line with the schedule outlined in the feasibility study (FS). Total ore tonnes and gold delivered to SIGM are also on target. To the end of June, approximately 90% of the total pit volume had been mined and 66% of the gold.
As planned, total volumes to be mined and the waste to ore ratio reduce as the open pit approaches its planned completion, further improving the operating margin for the remaining months.
The opportunity to excavate select ‘goodbye’ cuts will be evaluated prior to operations ceasing. Any ore realised in this process will be additional to the planned ore agreed with SIGM.
The A$ gold price applicable to June’s ore deliveries to SIGM under the OPA was $6,027.14/oz. The gold price realised to date averages $6,429/oz, still approximately 3.0% above the $6,250/oz level that was modelled in the FS.
LM8 was steady at 29.5¢ with a Mkt cap $65.88M before markets opened.
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The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
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