Lunnon Metals (ASX:LM8) reveals that the Lady Herial prospect in Western Australia, has ‘robust economics’ for a short-life, high-grade, low-strip ratio open pit gold opportunity following the completion of Scoping Study.
Lady Herial is an outcropping to a very shallow, thick gold deposit and was discovered from initial drilling completed in February 2024.
The Scoping Study indicates that the Lady Gerial open pit will generate a pre-tax cashflow of $44.7 million — ranging between $37.3 million at a $4,500 per ounce gold price and $52.1 million at a $5,000 per ounce gold price — with an all-in sustaining cost of $2,100 per ounce of gold produced.
Further, the study’s open pit optimisation generated, ranges between 210,000 tonnes @ 2 grams per tonne gold and 355,000 tonnes @ 1.8g/t gold.
A mine design defining a simple, low-strip ratio pit of 6.1:1 includes 300,000 to 320,000 tonnes @ 1.8g/t gold, containing 18,000 ounces of gold.
Lunnon, which has a market capitalisation of $45.22 million, notes the study is based almost exclusively on measured and indicated mineral resource category.
Lady Herial contained a resource of 573,000 tonnes @ 1.6g/t gold for 29,000 ounces of contained gold.
Managing Director Edmund Ainscough says the study’s results may be modest in size, but with the indicative financial outcomes that have been forecast, it pushes above its weight.
“The discovery effort has refocused again, aiming to find the next high-value gold deposit and as we have shown, it’s all about location,” Ainscough says.
Once commercial arrangements are finalised and executed, further evaluation work may be required.
To achieve the range of outcomes indicated in the study, funding of between $5-10 million will be required to begin initial production.
Lunnon Metals is a gold and nickel explorer and developer focused on its portfolio in the St Ives/Kambalda district.
The Kambalda / St Ives gold camp is one of Australia’s most prolific gold production and discovery centres. Gold has been produced in the area since the discovery of the Red Hill gold mine in 1896.
Lunnon will also be attending the Noosa Mining Investor Conference, held between 23-25 July, at the Peppers Noosa Resort.
Mining.com.au is an official media partner of this year’s conference.
Write to Aaliyah Rogan at Mining.com.au
Images: Lunnon Metals
