Lunnon Metals (ASX:LM8) has approved a $13 million exploration budget for the 2027 financial year to test ‘significant’ gold potential across its Foster-Baker project in Western Australia’s St Ives gold camp.
The company estimates a closing cash balance of approximately $21 million at 30 June 2026 and announces that it is now debt-free.
Lunnon Metals says the exploration budget represents the first part of a two-year program to evaluate gold potential across the 23km2 project area.
The 2027 program will complete over 43,000m combined aircore, reverse circulation, and diamond drilling, representing the most metres drilled in a single year in the project’s 60-year history.
Lunnon Metals will test over 30 targets across all gold belts within the project area, with the Foster Gold Belt receiving the largest allocation of over 17,000m of drilling across 13 prospects.
It has established a conceptual exploration target of 25 to 30 million tonnes grading 1.50 to 2.50 grams per tonne gold for 1.2 to 2.4 million ounces to a depth of 400m.
Managing Director Edmund Ainscough says the cash flow from Lady Herial, the company’s first gold discovery, has allowed the company to back its exploration team to deliver further mineral resource growth and potentially a “significant” new discovery.
“Since the company’s IPO we have completed over 140km of drilling, discovered and permitted the Baker nickel deposit, and subsequently discovered, permitted, and commenced mining gold at Lady Herial,” Ainscough says.
“In approving the FY2027 budget, the board recognises this track record, understands that our tenements sit within the historic and productive St Ives gold camp, and supports the team in its goal of delivering further significant exploration success to the benefit of all our stakeholders over the coming years”.
The Foster-Baker project has recorded 18 million ounces mined with a further 12 million ounces remaining in reported mineral resources and ore reserves held by Gold Fields (JSE:GFI) and Westgold Resources (ASX:WGX).
It comprises 19 contiguous mining leases that have recently been renewed until 23 December 2046.
Lunnon Metals currently holds gold mineral resources of 1.47 million tonnes at 1.80g/t for 84,400 ounces across the Lady Herial and Hustler deposits.
Lunnon Metals is a gold and nickel explorer and developer focused on its 100%-owned Foster-Baker project located within the Kambalda and St Ives gold camps in Western Australia.
Write to Paula Fabe at Mining.com.au
Images: Lunnon Metals
