Lunnon Metals (ASX:LM8) lifts Lady Herial resource 49% as mining commences at Kambalda

Two years after discovery, Lunnon Metals has materially expanded the Mineral Resource at its Lady Herial gold deposit within the Kambalda Gold and Nickel Project in Western Australia, while simultaneously moving into production.

The updated estimate, reported against a backdrop of elevated A$ gold prices, underpins an operation that has already delivered its first ore blast and is now trucking material to the Run of Mine pad.

Highlights

• 49% increase in gold ounces in the Lady Herial Mineral Resource estimate

• Mineral Resource now 0.79Mt @ 2.1g/t Au for 54,200oz at a 0.5g/t Au cut off

• 0.31Mt @ 2.4g/t Au for 24,100oz classified as Measured

• Mining underway, first ore blast complete, ore deliveries to the ROM pad ongoing

• Ore Purchase Agreement in place with St Ives Gold Mining Co. Pty Ltd

The revised Mineral Resource estimate as at 27 February 2026 comprises 310,000t @ 2.4g/t Au for 24,100oz in the Measured category, 289,000t @ 1.9g/t Au for 17,500oz Indicated, and 190,000t @ 2.1g/t Au for 12,600oz Inferred, totalling 789,000t @ 2.1g/t Au for 54,200oz at a 0.5g/t Au cut off.

Compared with the November 2025 estimate of 36,400oz, this represents a 149% increase in total ounces, reflecting additional close spaced drilling and reclassification into higher confidence categories.

More than 22.5km of drilling has been completed at Lady Herial since February 2024, including definition, grade control, metallurgical, geotechnical and sterilisation holes.

The deposit comprises Upper and Lower structures, spaced approximately 50m to 60m apart and dipping north west at 40°, with a stacked long axis plunge of approximately 35° towards 290° and currently extending for approximately 450m. Both structures remain open down plunge.

A fourth structure, the Northwest Prospect, located 60m to 70m above the Upper Structure, is drilled over a 130m plunge extent and remains open in all directions.

The Mineral Resource has been assessed through Whittle open pit optimisation to support Reasonable Prospects of Eventual Economic Extraction, with reporting at a 0.5g/t Au cut off reflecting the current A$ gold price, outcropping geometry and proximity to infrastructure.

Metallurgical testwork supports a 91% recovery factor, which has been fixed under the Ore Purchase Agreement with St Ives Gold Mining Co. Pty Ltd.

Under that agreement, all open pit production averaging 0.5g/t Au and above will be sold for treatment at the Lefroy Plant, with free cash flow shared 70% to Lunnon Metals and 30% to SIGM once operating and start up costs have been recovered.

Sensitivity analysis in the January 2026 Study outlined LM8’s 70% share of pre tax free cash flow ranging from $27.8m at $5,000/oz to $47.9m at $7,000/oz.

Managing Director Edmund Ainscough said,

“Lady Herial reporting more than 50,000oz in Mineral Resource is an outcome we could not have imagined back in early 2024 when we refocused our activities on gold.”

Mining commenced following approval of the Mining Proposal and Mine Closure Plan on 17 December 2025 and the Native Vegetation Clearing Permit on 8 January 2026.

The Board approved a Final Investment Decision on 19 January 2026, with the first ore blast completed and deliveries to the ROM pad underway.

Attention now turns to optimisation of a potential north west cut back and incorporation of the nearby Hustler deposit into short term plans, with further technical work to assess underground potential beyond the current open pit.

In a district that has produced more than 16Moz of gold historically, Lady Herial represents Lunnon Metals’ first gold discovery to reach production within its Kambalda tenure, providing a production platform from which to evaluate additional gold opportunities across the Foster Baker ground.

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