Lunnon Metals (ASX:LM8) has delivered a maiden resource estimate at the Lady Herial gold deposit representing the group’s first discovery at its Kambalda Gold and Nickel Project in Western Australia.
Results from the prospect’s initial drill hole beginning in February 2024 shows 573,000 tonnes at 1.6 grams per tonne gold for 29,000 ounces including a measured resource of 270,000 tonnes at 1.9g/t gold for 16,600 ounces.
Currently awaiting regulatory approval of open pit results, Lunnon Metals, which has a market capitalisation of $50.74 million, plans to complete another round of infill close spaced drilling.
The program aims to remove the need for grade control and upon completion, Lunnon will plan additional drilling to further clarify the MRE.
With the existing cash balance, Lunnon believes that a successful open pit mine will allow for the company to create a sustainable program for future gold opportunities.
Managing Director Edmund Ainscough says that although the company’s refocus towards the gold industry was a low risk endeavour, it’s surprised by the gold price levels discovered in the Lady Herial deposit.
“The technical studies are well advanced and in the near future, we will be able to communicate the potential financial benefits of mining Lady Herial as well as kicking off best endeavour negotiations with Gold Fields to lock in an agreed window to mine and deliver this deposit to their nearby processing point,” Ainscough says.
As reported by Mining.com.au, Lunnon reached an agreement with Gold Fields (JSE:GFI) in March 2025 to vary an existing right of pre-emption that applies to gold material from this deposit.
Lunnon Metals is an exploration company specialising in gold and nickel projects across the Kambalda district in Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Lunnon Metals
