Lunnon Metals (ASX:LM8) infill assay results De Risk Hustler Gold Deposit

Lunnon Metals has reported assay results from an infill drilling program at the Hustler gold deposit, located 400m southeast of the Company's active Lady Herial gold open pit at the Foster Baker gold project in the St Ives gold camp.

The announcement also provides an update on metallurgical test work, a Mineral Resource estimate update and permitting activities.

Highlights

With successful open pit mining ongoing at the Company's first gold discovery, Lady Herial, the Company's recent exploration activities have focused on de risking the adjacent Hustler gold deposit via a program of infill drilling.

The reverse circulation program comprised 36 holes designed to achieve nominal 20m x 20m spacing, with selected areas drilled to a closer 10m x 10m spacing.

Significant results above a 0.5g/t Au cut off include 11m @ 2.41g/t Au, 9m @ 2.37g/t Au, 13m @ 1.63g/t Au and 10m @ 1.38g/t Au, together with numerous other mineralised intersections reported across the program.

Three diamond drill holes were also completed to collect sufficient sample for metallurgical test work representing the grade ranges and material types contained within the current Mineral Resource estimation model.

The company stated that this objective was successfully achieved, generating high, mid range and low grade intervals, with test work designed to simulate the process flow at the nearby Lefroy Gold Plant now underway.

Four additional diamond drill holes were completed for geotechnical studies associated with the expected pit walls and, by design, are not expected to intersect or influence the Mineral Resource.

The company stated that these results conform with the existing Hustler Mineral Resource estimate, which will now be updated.

In parallel, Lunnon Metals is working with Hampton Mining & Civil to generate unit operating costs for a scenario that could see Hustler mined in parallel with a potential Lady Herial cut back, termed LDH2.

The company stated that the potential combination of both pits may afford the opportunity to apply lower unit operating costs when compared to the current rates being experienced in the lower volume Lady Herial pit.

In light of recent movements in the A$ gold price, the company is reviewing the timeline to mine both open pits concurrently versus sequentially.

Subject to the outcomes of that analysis, the company intends to report the results in a Scoping Study for the Hustler and LDH2 gold deposits.

Lunnon Metals Managing Director Edmund Ainscough said,

“The recent Lady Herial process demonstrated just how quickly the Lunnon Metals team can identify, define and then deliver on the potential of these modest sized, but near surface gold deposits. The current operating experience stands us in good stead to complete the analysis of Hustler as quickly as possible and progress permitting activities in parallel, just as we did with Lady Herial.”

The Hustler deposit forms part of the Kambalda Gold and Nickel Project in the Kambalda St Ives district of Western Australia, where the company states that all gold prospects being tested and evaluated are 100% owned by Lunnon Metals.

The Foster Baker project is located on granted mining tenements with significant existing infrastructure in place, including nearby gold plants such as the Lefroy plant, a few kilometres to the north and owned and operated by the Company's major shareholder, Gold Fields, together with the Lakewood and Higginsville plants.

Permitting activities are underway while the Mineral Resource estimate update, metallurgical test work and open pit optimisation studies continue.

The company also stated that commercial arrangements under the current Lady Herial Ore Purchase Agreement will be assessed for their applicability to these opportunities, with discussions to be initiated with St Ives to determine its level of interest in working collaboratively with Lunnon Metals.

Subject to the outcomes of the ongoing analysis, the company intends to report the results in a Scoping Study for the Hustler and LDH2 gold deposits.

—

Click here to view the latest ASX news.

Subscribe to The Day’s Play for daily ASX insights and capital markets updates.