Lunnon Metals (ASX:LM8) sharpens focus with more high-grade gold at Lady Herial

Lunnon Metals (ASX:LM8) is pressing its case that Kambalda is not just a nickel district but also a rich hunting ground for shallow, high-grade gold.

The company’s latest results from the Lady Herial deposit reinforce the view that this overlooked corner of the St Ives gold camp could become a near-term producer, providing valuable early cash flow while underpinning broader ambitions across the Foster-Baker project area.

The new assays come from infill reverse circulation drilling at tight grade-control spacing, designed to provide the geological certainty typically sought once mining is already underway.

Lunnon has elected to release the data at this stage to demonstrate confidence in its modelling and to give the market a clearer sense of Lady Herial’s production potential.

Highlights

• 20m at 12.29 grams per tonne (g/t) gold from 13m

• 16m at 8.16g/t gold from 15m

• 17m at 2.07g/t gold from 2m

• 12m at 2.92g/t gold from 10m

• 4m at 8.08g/t gold from the emerging Northwest Prospect

These results, drawn from the Middle and Lower Structures of Lady Herial, sit at depths ranging from surface to around 45 metres, the planned base of the open pit.

True widths are estimated at about 90 per cent of drilled widths, underscoring the consistency and thickness of the mineralisation.

This in turn validates the June scoping study, which envisaged a modest open pit producing 300,000 to 320,000 tonnes at an average grade of 1.8g/t gold, delivering around 18,000 ounces.

At a gold price of $5,000 per ounce, the study modelled free cash flow of around $45 million on a 100 per cent basis. With today’s intercepts pointing to thicker, higher-grade zones, the potential for upside to those numbers is clear.

The drilling also flagged upside from the Northwest Prospect, located 60–70 metres above the Upper Structure.

While it will not affect the near-term mine plan, it may support a later pit push-back or modest underground operation, highlighting that Lady Herial could evolve into more than a one-pit wonder.

Lunnon Metals managing director Edmund Ainscough emphasised that the results confirm the technical team’s confidence in the model and position the company well for its first foray into gold production.

“It is very satisfying to see all the hard work paying off with today’s results again confirming the robustness of our technical analysis and enabling us to focus on the very highest grade components of all the various mineralised structures at Lady Herial,” he said. “It’s time for the drillers to take a short breather whilst the technical team updates their model and grade estimates and then start to plan ahead for what has the potential to be an exciting first gold development for Lunnon Metals.”

Importantly, Lunnon has secured an ore purchase agreement with St Ives Gold Mining, its major shareholder, ensuring that any ore can be processed at St Ives’ existing plant.

This arrangement removes a major hurdle for small-cap developers: the need to fund costly standalone processing infrastructure.

The broader strategy at Foster-Baker is to replicate Lady Herial’s model across other prospects, using early-stage cash flow to finance higher-risk, higher-reward exploration across the +16Moz St Ives camp.

With shallow mineralisation, existing haulage and plant access, and a supportive cornerstone partner, the company is positioning itself to turn discovery into production with unusual speed for a junior.

The next steps include updating the geological model, recalibrating the resource estimate, and completing mine design and scheduling.

Investors will be watching closely to see if the refreshed numbers confirm a higher overall grade and a stronger production profile.

For Lunnon, Lady Herial could well be the launchpad for a broader gold business that complements its long-held nickel credentials.

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