Lefroy Exploration (ASX:LEX) commences ore mining at Lucky Strike as toll treatment pathway advances

Graeme Gribbin, Chief Executive Officer of Lefroy Exploration, outlines the commencement of mining at the Lucky Strike Gold Deposit near Kalgoorlie, marking the Company’s transition from development activities into active ore extraction and the establishment of initial Run of Mine stockpiles.

Graeme also details the secured toll milling arrangements with FMR Investments at the Greenfields Mill in Coolgardie, the Mineral Resource base supporting the initial production phase, and the commercial framework underpinning operations under the profit share mining strategy with BML Ventures.

What is the current operational status of the Lucky Strike Gold Deposit and how has mining progressed to date?

Mining activities at the Lucky Strike Gold Deposit have progressed to the point where the first ore panels in the North Pit are now being extracted, with mineralised material intersected at approximately 17 m below surface at 275 m RL, and with Run of Mine stockpiles being progressively established on site as mining advances through the initial stages of the operation.

“Mining of first ore from the North Pit of the Lucky Strike Gold Deposit is now underway, with first ore intersected 17 m below surface and stockpiles continuing to build through the remainder of January.”

As material continues to be added to these stockpiles, the operation is transitioning from development into sustained ore extraction, while preparations are progressing for the commencement of regular ore haulage to the contracted processing facility.

What are the processing arrangements and expected near term throughput for Lucky Strike ore?

The Company has secured a toll milling arrangement with FMR Investments Pty Ltd at the Greenfields Mill in Coolgardie, under which an initial processing campaign of ore from Lucky Strike is scheduled to be treated.

“A one month toll milling slot has been secured with capacity for 80,000 to 90,000 tonnes of Lucky Strike ore, with processing scheduled to commence in February 2026 at the Greenfields Mill in Coolgardie.”

This contracted processing window aligns with the current build-up of Run of Mine stockpiles and the planned start of haulage, thereby establishing a defined pathway from mining through to treatment within an existing third party operating facility.

What is the Mineral Resource base underpinning the Lucky Strike operation and its classification?

The mining program is supported by a JORC Mineral Resource Estimate for the Lucky Strike Gold Deposit of 1.27 Mt at an average grade of 1.95 g/t Au for a total of 79,600 oz,

comprising an Indicated Resource of 0.70 Mt at 1.93 g/t Au for 43,400 oz and an Inferred Resource of 0.57 Mt at 1.97 g/t Au for 36,200 oz.

“The Lucky Strike Gold Deposit hosts a Mineral Resource of 1.27 Mt at 1.95 g/t Au for 79,600 oz, providing the geological foundation for the current open pit mining and toll treatment program.”

This resource inventory provides the technical basis for the initial mining and processing schedule and supports the early stage production profile now being established at the operation.

How does Lucky Strike integrate within Lefroy Exploration’s broader resource base and production strategy?

Lucky Strike represents the first asset to be advanced under Lefroy Exploration’s profit share mining model across its Lefroy Project landholding in the Kalgoorlie district, which in aggregate hosts more than 1 million oz of gold resources.

“Lucky Strike is the first of multiple shallow gold deposits within the Lefroy Project to be progressed under a profit share mining strategy, within a broader resource base exceeding 1 million oz across the Company’s Kalgoorlie and Kambalda portfolio.”

In addition to Lucky Strike’s 79,600 oz, the portfolio includes Mt Martin with 439,000 oz at 1.47 g/t Au and the high-grade component of Burns Central with 159,285 oz at 1.18 g/t Au, which have been identified as potential candidates for similar commercial arrangements as the Company continues to advance from exploration into production and cash flow generation.

Strategic outlook

With mining underway at Lucky Strike and Run of Mine stockpiles continuing to build ahead of ore haulage and toll treatment at the Greenfields Mill, Lefroy Exploration has established its first operating production base within a broader gold resource inventory exceeding 1 million oz across the Kalgoorlie district.

The combination of an existing JORC Resource of 79,600 oz at Lucky Strike, imminent toll treating of first ore in February 2026, and a profit share and funding agreement with BML Ventures provides Lefroy with a sound framework supporting its pathway from ore extraction through to first gold production.

Additional shallow gold resources at Mt Martin and Burns Central set within the backdrop of a robust gold price, positions the Company to consider similar commercialisation strategies across its entire gold resource base.

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