Lunnon Metals (ASX:LM8) confirms high-grade gold at Hustler and advances exploration at Defiance West

Lunnon Metals Limited (ASX:LM8) has reported encouraging assay results from infill drilling at the Hustler prospect and provided an update on its Exploration Incentive Scheme program at Defiance West, both located within the company’s Kambalda Gold and Nickel Project.

These results highlight the growing potential of Hustler as a near-surface gold system while also adding valuable geological knowledge from deep drilling at Defiance West.

Managing Director Edmund Ainscough addresses key questions from investors on the outcomes and the company’s forward strategy.

What do the latest drilling results at Hustler tell us about the scale and potential of the prospect?

The latest infill drilling at Hustler using 20 metre by 20 metre spacing has delivered consistent results across two main gold-bearing structures at shallow depths.

Intersections such as 20 metres at 1.48 grams per tonne gold from 34 metres, 4 metres at 2.95 grams per tonne gold from 26 metres, and 3 metres at 1.97 grams per tonne gold from 46 metres complement earlier results reported in March, which included 11 metres at 2.15 grams per tonne gold and 20 metres at 0.98 grams per tonne gold.

Collectively, the results confirm Hustler as a robust shallow system only 400 metres from Lady Herial.

“The program has confirmed two main gold-bearing structures at shallow depths, and importantly, the results show consistent mineralisation across the area drilled.”

How does Hustler compare with Lady Herial and what is the pathway toward a potential Mineral Resource?

Hustler is shaping up as a distinct system compared to Lady Herial. Lady Herial consists of stacked structures, while Hustler is showing a thicker near-surface structure as well as a gently dipping footwall structure.

Both are located within the Defiance Dolerite, a proven host rock in the belt.

“Both sit within the Defiance Dolerite, which has proven to be a favourable host rock in this part of the St Ives camp, and geological logging suggests that the mineralised widths we are intersecting closely reflect the true widths of the system.”

The next phase of drilling, already approved, will test the more favourable Zone 4 of the dolerite to the east and northeast, which has hosted the bulk of mineralisation at Lady Herial.

Subject to supportive results, the company will then assess the potential for an initial Mineral Resource at Hustler to guide further infill and step-out drilling.

What are the key outcomes from the second diamond hole at Defiance West under the EIS program?

The second deep diamond hole, drilled to 867 metres, has provided a detailed dataset even though significant gold zones have not been identified at this stage.

One of the most important findings was the earlier-than-expected intersection of the Foster Thrust, which highlights greater structural complexity in the area than anticipated.

“One of the most notable outcomes was intersecting the Foster Thrust earlier than expected, about 80m higher in fact, which demonstrates that the structural framework in this area is more complex than anticipated.”

In addition, the hole intersected a broad iron sulphide-rich sediment interval between 708 and 735 metres that returned anomalous silver, copper and zinc values, including 2.05 metres at 1.50 grams per tonne silver with 0.18% copper and 1.09% zinc.

The program has also generated valuable geophysical, geochemical and rock property data, with DHTEM results pending and an optical televiewer survey still to be completed.

This comprehensive dataset will be used to refine the geological model and guide further exploration targeting.

How does the Lady Herial Scoping Study inform the strategy at Hustler and other near-surface prospects?

The Lady Herial Scoping Study demonstrated the strong potential of shallow, gently dipping systems to generate meaningful cash flow quickly.

That study showed a modest open pit could mine 300,000 to 320,000 tonnes at about 1.8 grams per tonne gold for 18,000 ounces, which at a gold price of A$5,000 per ounce could generate around A$45 million in free cash flow on a 100% basis.

All assumptions remain valid and unchanged from the Company’s 16 June 2025 ASX announcement, this outcome informs the strategy at Hustler and other near-surface targets in the Foster Gold Belt.

Replicating similar mineralisation could deliver additional modest-scale ore sources that are cost-effective to develop, while also providing cash flow to support exploration at larger, higher-risk, potentially higher-reward opportunities like Defiance West and Plentiful.

Why is Defiance West considered such a high-priority exploration target despite the mixed results so far?

Defiance West covers a largely untested four square kilometre area directly down plunge of the multi-million ounce Victory-Defiance-Conqueror system in the St Ives gold camp.

This is the first time deep drilling has been systematically applied to this ground, which is why the program secured co-funding under the Western Australian Government’s Exploration Incentive Scheme.

The first diamond hole in the program returned strong intersections including 3.4 metres at 3.12 grams per tonne gold with one metre at 8.50 grams per tonne gold and also identified the regionally significant Foster Thrust containing visible gold.

“The first diamond hole in the program was very encouraging, with intersections of 3.4 metres at 3.12 grams per tonne gold including one metre at 8.50 grams per tonne gold.”

The second hole has added further geological insights by showing greater structural complexity and returning anomalous silver, copper and zinc results.

When combined with detailed structural logging and geophysical surveys, this data provides a strong foundation for refining the geological model.

The project’s location adjacent to known deposits underlines the importance of continued systematic exploration.

Looking ahead

The results at Hustler have confirmed shallow mineralisation with similarities to Lady Herial, while the Defiance West program has delivered important structural and geoscientific insights in a previously untested area.

Together, these efforts reflect Lunnon Metals strategy of advancing near-surface opportunities that can generate early cash flow alongside ongoing work to unlock larger, high-impact discoveries.

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified.