Lunnon Metals (ASX:LM8) confirms thick high-grade gold zones at Lady Herial

Lunnon Metals Limited (ASX:LM8) has released new assay results from its Lady Herial gold deposit, located within the Kambalda Gold and Nickel Project in Western Australia.

The results confirm thick, high-grade gold mineralisation in the Upper Structure, providing further confidence in the deposit as the Company advances towards potential development.

To explain the significance of these results and outline the next steps, Managing Director Edmund Ainscough responded to key investor questions.

What do the latest assay results from Lady Herial tell us about the Upper Structure?

The drilling has confirmed thick zones of high-grade gold mineralisation ranging from surface down to the base of the planned open pit, which is about 45 metres deep.

Standout results include 26 metres at 6.37 g/t Aug/t Au from 9 metres, 14 metres at 18.07 g/t Au from 20 metres, and 7 metres at 34.38 g/t Au from 5 metres, with exceptionally high grades such as 2 metres at 121.47 g/t Au and 4 metres at 59.28 g/t Au.

“These results have come from a grade control spacing of approximately 8m by 6m, which is deliberately detailed to minimise uncertainty ahead of mining.”

The assays align closely with our geological modelling, which demonstrates the strength of our technical analysis and gives us greater confidence in the consistency of the gold distribution.

What is the status of drilling and assays across the Lady Herial deposit?

The reverse circulation drilling program at Lady Herial has been completed. We have received the majority of assays from the Upper Structure, which strongly confirm the high-grade gold we had modelled.

Assays for the Lower Structure, and the less I important Middle Structure, are still pending.

“Having results from all three structures will enable us to refine mine design and scheduling decisions, particularly with a view to optimising access to high-grade areas in the earliest stages of mining.”

Closer-spaced drilling has also improved the precision of our geological interpretation, showing that while the structures narrow at their extremities, the gold grades remain consistent or better than expected.

How do these results impact the development potential of Lady Herial?

The results further support the potential for Lady Herial to deliver a shallow, low strip ratio open pit with meaningful early cash flow.

A Scoping Study completed in June 2025 indicated that such a pit could generate between 300,000 and 320,000 tonnes of ore at an average grade of around 1.8 g/t Au, containing approximately 18,000 ounces of gold.

“At a gold price of A$5,000 per ounce, this scenario could generate approximately A$45 million in free cash flow on a 100 percent basis over a relatively short timeframe.”

The new assays reinforce this potential by confirming thick, high-grade zones at shallow depths, creating opportunities to optimise the mine plan and prioritise the most valuable material at the start of mining.

How does Lady Herial fit into Lunnon Metals’ broader strategy?

Lady Herial is a priority development opportunity within the Foster-Baker project at the Kambalda Gold and Nickel Project.

The shallow and high-grade nature of the deposit makes it a compelling near-term target.

By undertaking detailed grade control drilling well before development, we have deliberately de-risked the deposit so that any start-up phase can move forward with maximum certainty.

The broader strategy is to use Lady Herial not only as a source of near-term production but also as a cash flow generator that can support an aggressive exploration program targeting higher-risk, higher-reward prospects in the St Ives gold camp, such as Defiance West and Plentiful.

The St Ives camp has already produced more than 16 million ounces of gold, and we believe it continues to hold the potential for further discoveries. Lady Herial is the first step in building our own pipeline of opportunities.

What are the next steps for progressing Lady Herial toward production?

Our immediate priority is to receive the outstanding assays from the Middle and Lower Structures to complete the dataset for the deposit.

Once those results are integrated, we can refine mine design, with a focus on bringing the high-grade zones into the earliest stages of production.

At the same time, we are in discussions with our major shareholder, St Ives Gold Mining Company, regarding a potential commercial agreement to process Lady Herial ore at its nearby plant.

“Securing that processing pathway would be a critical milestone in moving Lady Herial towards production.”

Once we have the final assays and processing arrangements in place, we will be in a position to finalise the mine schedule and development planning, ensuring Lady Herial is positioned to deliver early cash flow with a low risk profile.

Positioning Lady Herial for Development

The latest results from Lady Herial underline the strength of the deposit and highlight the value of Lunnon Metals methodical approach to de-risking before mining commences.

With further assays pending and processing discussions progressing, the Company is well positioned to advance Lady Herial into development while also preparing to fund broader exploration across the world-class St Ives gold camp

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