Lefroy (ASX: LEX) positions Lucky Strike production to support exploration strategy

Lefroy Exploration has delivered its first gold doré bars from the Lucky Strike Gold Mine, marking an operational milestone while reinforcing exploration as the Company’s core strategic focus.

Chief Executive Officer Graeme Gribbin spoke with MarketOpen to address key investor questions in relation to what first production validates, how the current toll milling campaign is progressing, and how Lucky Strike supports the broader Lefroy Project.

With 27.2 kilograms of doré produced for an estimated 584 ounces of gold and further milling capacity under negotiation, the emphasis remains on disciplined execution and using production as a platform to advance the Company’s broader gold portfolio.

What does the first 584oz of unreconciled production concretely validate that was not previously de risked at Lucky Strike?

The first 584 ounces of unreconciled production confirms that Lucky Strike has completed a full operating cycle from mining through to delivered first doré at the Perth Mint Refinery, with more to come. Mining and toll milling is well avanced, but this result formalises the transition into realised gold output under our existing agreements.

It demonstrates that the operating model is functioning as intended, with ore extracted under our profit share framework converted into saleable gold through third party processing. This establishes operating credibility and confirms that the pathway from defined resource to physical production is active under current arrangements.

How does first production support your broader strategy across the Lefroy Project?

First production at Lucky Strike provides operating momentum and a source of internally generated cash flow. While Lucky Strike is our first producing asset, exploration remains central to our strategy.

As stated in our recent announcement, the Company is now on the brink of delivering significant value to current shareholders, not just from Lucky Strike, but through realising value from our 1 million ounce gold resource base across the broader Lefroy Project. Production at Lucky Strike provides a foundation from which we can continue to advance exploration across the broader project area.

What are the critical commercial terms being negotiated in the next toll milling allotment?

We are advancing negotiations to secure further toll milling capacity for Stage 1, having previously outlined our aspiration to secure up to 250,000 tonnes of toll milling ore. The objective is to ensure continuity of processing access aligned with mining schedules as production progresses.

We are not committing to fixed processing infrastructure and instead continue to secure processing capacity under arrangements that support conversion of mined ore into gold while maintaining operational flexibility.

From first gold to exploration focus

First production establishes Lucky Strike as an operating asset and demonstrates Lefroy Exploration’s ability to deliver gold output under its current agreements. The immediate priority is completion of the current toll milling campaign and securing further processing capacity for Stage 1. Beyond that, the strategic focus for Lefroy is on utilising cash flow generated from Lucky Strike to progressively self fund exploration activity across the broader Lefroy Project and realise value from the Company’s 1 million ounce gold resource base..

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