Lefroy Exploration (ASX:LEX) sets stage for gold production with inaugural toll milling

Lefroy Exploration has embarked on a pivotal phase at its Lucky Strike Gold Mine, located near Kalgoorlie in Western Australia, with its inaugural toll milling campaign now underway.

This development marks a significant milestone in the company’s journey, bringing it closer to its first gold production and unlocking further potential at this high-grade gold project.

Highlights:

• Inaugural toll milling campaign for the Lucky Strike Gold Mine now in progress.

• Ore being transported to the FMR Investments Greenfields Mill throughout February.

• First gold expected by mid-February, coinciding with elevated spot gold prices.

• Ongoing grade control drilling targeting the future Stage 2 South pit.

The milling campaign involves 24-hour haulage of ore to the Greenfields Mill in Coolgardie, with the first gold anticipated by mid-month, coinciding with favourable market conditions, including historically high spot gold prices, which are expected to further enhance the project’s value.

This achievement follows the successful execution of a mine profit share agreement with BML Ventures in February 2025, which has enabled Lefroy to advance the Lucky Strike project with minimal financial risk exposure to shareholders.

The funding provided by BML Ventures has been instrumental in bringing the project to this stage, offering an efficient route to production while protecting the interests of Lefroy shareholders.

In addition to the toll milling operations, Lefroy is actively progressing the grade control drilling program. This drilling targets the Stage 2 South pit, which is key to expanding the gold resource at Lucky Strike.

The focus of the grade control drilling is on the top 50-60 metres from the surface, which will further delineate the mineralisation and provide more precise information for future mining activities.

Graeme Gribbin, Lefroy’s CEO, commented:

“We are pleased to confirm that toll milling is underway at the FMR Greenfields Mill in Coolgardie, representing a truly significant milestone for Lefroy. From the initial execution of the mine profit share agreement with partners BML Ventures in February 2025, we are now on the threshold of generating first gold from the Lucky Strike Gold Mine inside a short 12-month period.”

The successful milling campaign will contribute directly to Lefroy’s broader strategy of advancing its gold assets towards cash generation.

The company’s approach (focused on low-cost, high-grade gold production through profit share agreements) has allowed it to minimise the financial burden on its balance sheet while progressing towards sustained production.

Looking ahead, Lefroy has a promising path forward, with plans to expand the mine footprint at Lucky Strike by further exploring the Stage 2 South pit, potentially increasing its gold ounces in the process.

The favourable gold price cycle provides a strong backdrop, and with further drilling and production milestones on the horizon, Lefroy is well-positioned to continue advancing its strategic goals in the gold sector.

With its flagship Lucky Strike project moving closer to full-scale production and additional resources identified across its broader landholdings, Lefroy Exploration is advancing its growth trajectory in a sector benefitting from robust market conditions.

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