Lunnon (ASX:LM8) eyes off shallow gold for near-term Kambalda exploits
June 17, 2024Lunnon Metals is looking at drilling towards a maiden gold resource at Foster-Baker after intersecting significant mineralisation at two prospects within its greater Kambalda nickel project near the namesake town of Western Australia.
Drilling at Lady Herial hit narrow-modest width, high-grade gold zones with assays up to 3 metres at 14.8 grams per tonne, representing a series of near surface, gently dipping quartz vein structures associated with old workings.
Reassay of a 2021 hole at the prospect notably returned a significantly higher result in one interval, and drilling over the Plentiful prospect also found a focused area of mineralisation in around 50m of strike with hits up to 3.0m @ 2.59g/t.
“Our first and now second-pass gold focused drill programs have continued to deliver exciting results, narrowing our focus on the near-surface at Lady Herial, and at depth at Plentiful,” Lunnon Managing Director Edmund Ainscough said.
Ainscough noted all the positive attributes inherent in its Kambalda tenure that set its cornerstone nickel asset up for success would likewise serve a gold-focused campaign.
“Abundant existing infrastructure, granted mining leases, minimal regulatory steps to permitting and low-modest start-up capital, all serve to act as a springboard for this latest success with our gold programs,” he said.
“The opportunity to take a low-cost focused approach on near surface gold has the potential to bear fruit in the short-medium term with the gold price at all-time highs in Australian dollar terms.”
Lunnon has over four million tonnes at 2.7 per cent nickel to play with across greater Kambalda after a recent high-grade upgrade and sees Lady Herial in particular as a near-term prospect to be exploited.
While there are specific gold-excluded areas across its Kambalda tenure, all prospects being tested are fully under Lunnon control, and the nearby Lefroy plant is notably operated by a major shareholder in Gold Fields (JSE:GFI).
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