Lefroy Exploration (ASX:LEX) progresses Lucky Strike towards production

Lefroy Exploration’s Lucky Strike gold project near Kalgoorlie is now firmly on the pathway to production following receipt of key regulatory approvals, marking a notable transition point for the company as it advances from explorer to first-time producer.

The company has confirmed approval of its Mine Development and Closure Plan, alongside a clearing permit for the Lucky Strike mining lease, enabling on-ground works to begin shortly.

Highlights

• Mine Development and Closure Plan approved by the Department of Mines, Petroleum and Exploration

• Clearing Permit granted for mining lease M25/366

• BML Ventures to commence site clearing and pre-strip works in November

• First ore scheduled for toll processing at FMR’s Greenfields Mill in February 2026

• Profit-sharing structure ensures BML prefunds development and operations

Lucky Strike contains a mineral resource estimate of 1.27 million tonnes at 1.95 grams per tonne gold for 79,600 ounces, comprising both indicated and inferred categories.

Under a profit-sharing agreement established earlier in 2025, privately-owned BML Ventures will manage all site operations, including capital and pre-production works.

BML has a background in funding and operating open pit gold mines in the Kalgoorlie region, providing the operational expertise required to progress the project without the need for near-term equity raising by Lefroy Exploration.

The company has also secured a Profit Cash Advance Facility Agreement with BML, totalling $2.5 million across staged instalments during FY26.

This arrangement is designed to underpin working capital ahead of initial profit distributions from gold production.

In announcing the approvals, Chief Executive Officer Graeme Gribbin described the milestone as pivotal for the company’s transition to near-term production.

“The acceptance by the DMPE of the Mine Development and Closure Plan represents the final major approval for the project, paving the way for earthworks to commence at Lucky Strike. With BML now overseeing all onsite activities, first toll milling of ore is scheduled for February 2026.”

Site activities will begin with clearing, establishment of site offices and accommodation, installation of workshop facilities, and preparation of waste dump and run-of-mine stockpile locations.

A swift operational sequence is anticipated, with first ore haulage to Greenfields Toll Mill at Coolgardie targeted for February 2026, followed by first gold output in March 2026.

The development strategy sits within Lefroy’s broader plan to commercialise multiple near-surface gold deposits within its 635 square kilometre landholding in the Kalgoorlie-Kambalda region.

The company holds more than one million ounces in combined gold resources across Lucky Strike, Mt Martin and Burns Central, and is positioning these deposits for similar staged development under cost-sharing structures.

The move into construction and early mining activities marks a material step for Lefroy as it enters a period of operational execution, supported by a profit-sharing model with BML that reduces upfront capital requirements while preserving exposure to potential production revenue.

With approvals secured and a defined pathway to processing, attention now shifts to site preparation, grade control execution and scheduling for toll milling.

As Lucky Strike advances through development, the market will be watching progress toward February 2026 processing and the company’s stated plan to generate first gold shortly thereafter.

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