Lunnon Metals (ASX:LM8) confirms strong gold recoveries at Lady Herial, progresses ore purchase agreement with gold fields

Following the release of detailed metallurgical test work results for the Lady Herial gold deposit, Lunnon Metals Limited (ASX:LM8) has provided investors with further insight into the technical and commercial implications of these results.

The program, completed in collaboration with Gold Fields Ltd, was designed to simulate processing conditions at the nearby St Ives Gold Plant and has delivered strong confirmation of overall recoveries, gravity recoverable gold and ore processing characteristics.

Managing Director Edmund Ainscough answers five key investor questions about how these results compare with the June 2025 Scoping Study, what they reveal about the deposit’s characteristics, and the next steps towards potential production.

How do the metallurgical test work results compare with the assumptions used in the June 2025 Scoping Study?

“The detailed metallurgical test work has provided very positive confirmation of the recovery factors we used in the June 2025 Scoping Study, where we applied a 90.5 per cent recovery factor to our financial modelling.”

That figure was a conservative number, asearly-stage “sighter” test work had actually come back at 95%.

This latest program, using diamond core drilled specifically for metallurgical purposes, was designed to simulate the St Ives plant conditions and has demonstrated average gold recoveries of 91.4 per cent after 12 hours and 94.6 per cent after 24 hours at P80 passing 150 microns.

So at a grind size that closely matches the plant’s operating grind size and residence time of approximately 18–20 hours, we’ve now got great confidence in Lady Herial’s ability to meet or potentially exceed our previous modelling.

What do the gravity recoverable gold results indicate about the nature of the Lady Herial deposit?

“The strong gravity response means that a goodportion of the gold can be recovered early in the process through gravity separation before cyanidation, which is beneficial for plant efficiency and can help overall recoveries.”

Testing showed an average gravity recovery of 42.3%, with results ranging from 29.3%to 48.9%. This aligns with site observations of coarse gold during earlier exploration panning.

The consistency between field observations, assay results and metallurgical data supports the view that the deposit contains a coarse gold component, and we’ve recorded many previous high-grade intercepts, such as 1m @ 350g/t Au that we panned and reported back in October 2024.

How does the Lady Herial material perform from a processing and throughput perspective at the St Ives plant?

The comminution and Bond Work Index results show that the material is well suited for the St Ives plant.

Joint oxidised and transitional composites recorded medium to low crushing indices and low abrasion indices, while the oxide composite from the Middle Structure was more friable with lower energy requirements, making it ideal for blending into the SAG mill feed at up to 15 per cent, consistent with typical practice at St Ives.

All tested material types fell within the expected parameters making it an ideal blending source.

What is the current status of negotiations with Gold Fields?

“Now that we have completed and delivered the detailed metallurgical results to Gold Fields, we are in the final phase of negotiating a potential Ore Purchase Agreement which would set the commercial terms under which Lady Herial could be processed at the St Ives Gold Plant, located only a few kilometres from the deposit.”

These results confirm recovery rates, grind size compatibility and reagent consumption figures that are critical to processing costs and scheduling.

Once terms are agreed, the company will prepare a Notice of Meeting for shareholders, with an Extraordinary General Meeting to follow for formal approval, in line with ASX Listing Rules.

What are the next steps in advancing Lady Herial towards production?

Lunnon Metals has lodged the Mining Proposal, Mine Closure Plan and Native Title Vegetation Clearing Permit with the Western Australian Department of Mines, Petroleum and Exploration.

Further grade control drilling on an 8 metre by 6 metre pattern is underway to refine the Mineral Resource estimate.

Once updated, and with an Ore Purchase Agreement in place, mine design and scheduling will be finalised with Gold Fields to align the timing of Lady Herial’s production with St Ives’ plant needs.

Positioning Lady Herial for the Next Stage

The metallurgical results have validated the recovery assumptions applied in earlier studies and provided the final technical data needed for commercial discussions with Gold Fields.

With permitting underway and grade control drilling in progress, the focus is on completing commercial negotiaitons and integrating Lady Herial into the St Ives processing schedule to deliver shareholder value.

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