Lefroy Exploration (ASX:LEX) reports Lucky Strike production, drilling and funding update

Lefroy Exploration has provided an update on production, mining and drilling activities at its Lucky Strike Gold Mine near Kalgoorlie, outlining initial toll milling results, grade control drilling outcomes and an additional funding drawdown.

The announcement covers early-stage production metrics alongside ongoing resource definition work within and adjacent to the existing deposit.

Highlights

• 31,796 dry tonnes processed at 1.42 g/t Au for 1392 recovered ounces, with 96.2% recovery
• Strong reconciliation reported between mine, resource and mill grades
• Significant shallow grade control drilling intercepts including 16m @ 3.39 g/t Au and 11m @ 2.92 g/t Au
• Intersections recorded outside the current resource model including 3m @ 7.18 g/t Au and 2m @ 8.42 g/t Au
• Stockpiles increased by 13,069 ore tonnes for future toll milling
• $0.5 million received under the Profit Cash Advance Facility Agreement

The February toll milling campaign marked the first processing of ore from Lucky Strike, with 31,796 dry tonnes milled at a reconciled head grade of 1.42 g/t Au, producing 1392 recovered ounces of gold.

The calculated reconciled gold recovery was 96.2%.

The company reported that both the mine claim to mill and the resource to mine claim grades reconciled strongly, with positive reconciliation in both instances.

Mining activities continued during the period, with ore stockpiles increasing by 13,069 tonnes on the ROM pad.

Operations are currently focused on completing waste cutbacks to enable access to higher grade ore panels above 2 g/t Au. Since mining commenced in December 2025, a total of 1,136,265 BCM has been extracted.

Grade control drilling targeting a potential Stage 2 South Pit returned multiple significant intercepts, including 16m @ 3.39 g/t Au from 127m, including 2m @ 11.09 g/t Au, and 11m @ 2.92 g/t Au from 41m, including 5m @ 4.55 g/t Au.

Drilling broadly confirmed the existing Lucky Strike resource model and validated the geological and mineralisation interpretation of the southern deposit.

Additional intersections were recorded outside the current mineral resource model, including 3m @ 7.18 g/t Au from 26m, including 1m @ 18.3 g/t Au, and 2m @ 8.42 g/t Au from 26m, including 1m @ 12.1 g/t Au.

These intersections were identified along the northern and eastern flanks of the proposed South Pit area.

The Lucky Strike deposit has a Mineral Resource Estimate of 1.27Mt @ 1.95 g/t Au for 79,600 ounces, comprising 0.70Mt @ 1.93 g/t Au for 43,400 ounces in the Indicated category and 0.57Mt @ 1.97 g/t Au for 36,200 ounces in the Inferred category.

Mining at Lucky Strike is being undertaken under a profit share arrangement with BML Ventures Pty Ltd, which funds upfront mining and operating costs, with revenue from the first toll milling parcel applied toward repayment of these costs and future surplus cash to be shared 50:50 between BML and Lefroy.

The company is also in advanced negotiations to secure toll milling slots for a further 250,000 ore tonnes.

Lefroy has also received a third cash advance instalment of $0.5 million under its $2.5 million Profit Cash Advance Facility Agreement with BML Ventures, strengthening its cash position.

The update outlines current production outcomes, drilling results and funding position at Lucky Strike, alongside ongoing mining and processing activities at the project.

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