Lefroy Exploration (ASX:LEX) is starting to consider potential joint venture (JV) partnerships to help bring its Mt Martin Gold Mine in Western Australia into development within the next 2 years.
Speaking to Mining.com.au, Lefroy Managing Director Wade Johnson says the company is open to all options as it works to upgrade the mineral resource at Mt Martin and push the project into development.
When it comes to potential partnerships, Johnson tells this news service parties with an established processing mill represent top candidates to form a ‘strategic alliance or joint venture’.
“We are already looking at all options to get Mt Martin into development, whether that is with a joint venture party or mining ourselves.
Mt Martin’s got a lot of infrastructure; there are already roads, water, and power, but we need a mill to mill the ore.
So, obviously, we have got to talk to partners and companies in the district who have already got mills, and where there’s an opportunity, we can perhaps form a strategic alliance or joint venture.”
While it’s too early for the company to outline any potential partnership structures, Johnsons says the project economics and related parties’ expertise would be key factors in the future decision-making process.
“We’ve got to get that resource done and look at the value in that resource, then you’ve got to look at your optimisations. What value can you get out of the development of an open pit? How much is it going to cost? And then, I guess, it’s between the parties. Who has the expertise in operating? Who has the expertise in exploration? And you have got to consider all those aspects.
So, I think you’ve got to look at all those and weigh up all those opportunities and what’s best for Lefroy and Lefroy shareholders.”
However, the MD notes the company will first focus on completing ongoing exploration within the Location 45 freehold property, which has been designed to expand the existing Mt Martin resource of 8.7 million tonnes (Mt) @ 1.79 grams per tonne (g/t) Au for 501,175 ounces of contained gold.
Drilling began on Friday 24 November and will comprise 37 reverse circulation (RC) holes for 7,100m.
The completion of drilling is scheduled for mid-December, with first assays due later in the month. Johnson notes Lefroy’s drilling program represents the first exploration undertaken at the mine in the last 10 years.
Johnson says the company hopes to be in a development position 12 to 18 months after June next year, which is when all drilling programs at the mine are expected to be complete.
Once exploration is complete, the MD confirms the company will look to move forward with Scoping Studies, subject to preliminary optimisations.
Meanwhile, Johnson adds that the company will maintain its focus on the Goodyear Nickel deposit in Western Australia, where the company is also looking to expand the resource.
Lefroy Exploration is a Western Australia explorer focused on expanding and developing its growing gold and critical minerals projects.
The company’s Mt Martin mine represents an old former open pit and underground gold mine with easy access.
As of 30 September 2023, Lefroy Exploration had $5.421 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Lefroy Exploration
