Lunnon Metals (ASX:LM8) fast gold play breaks the mould at Kambalda

When Lunnon Metals (ASX:LM8) listed in 2021, it outlined a clear thesis: that Kambalda’s well mined ground still held meaningful discoveries.

Its Lady Herial prospect, identified in 2023, now supports that claim, with a scoping study revealing an open pit development that could be operational within months and deliver robust free cash flow.

The study models an 18 000 ounce gold operation from a shallow, outcropping deposit located just 7.5 kilometres from the Lefroy mill, owned by Gold Fields.

With capital requirements estimated at between $5 million and $10 million, the project is positioned as a low cost, short lead time development an increasingly rare profile in the Australian gold sector.

What sets it apart
While many emerging gold stories hinge on multi year builds and nine figure capex, Lady Herial requires minimal new infrastructure.

The project benefits from existing mining leases, heritage agreements already in place, secured water licences, and access to a processing facility via established haul roads.

Lunnon Metals managing director Edmund Ainscough said:

“It might be modest in size, but with the indicative financial outcomes that the study has forecast, it certainly punches above its weight.”

Scoping study highlights

• Resource of more than 300 000 tonnes at 1.8 g/t gold

• 99 per cent of the inventory classified as measured or indicated

• All in sustaining cost modelled at $2 100 per ounce

• Forecast free cash of $44.7 million at a $5 000 per ounce gold price

• Bottle roll testing returned average recoveries of 95 per cent across all material types

Even at a $4 500 per ounce gold price, the project remains cash generative.

The current model assumes toll treatment at Lefroy, with mine proposal documentation and metallurgical optimisation work already in progress.

Strategic outlook
In absolute terms, the Lady Herial project is small.

However, its economic profile particularly the high margin and rapid payback demonstrates the financial impact of smaller, well executed pits near infrastructure.

With first ore potentially achievable within a year, Lady Herial could generate early revenue while preserving the company’s capital base.

According to Ainscough, exploration success remains central to the strategy:

“The discovery effort has refocused again, aiming to find the next high value gold deposit … don’t be surprised if we turn up another discovery in quick order.”

For Lunnon, the appeal of Lady Herial lies not in size but in execution.

In a market that often rewards scale and long term ambition, this project offers a timely reminder of the value in projects that are simple, efficient, and ready to deliver.

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