Lunnon Metals (ASX:LM8) Lady Herial open pit advancing toward development

Lunnon Metals has provided an update on progress toward establishing the proposed Lady Herial open pit at its Foster-Baker Project within the St Ives gold camp near Kambalda in Western Australia.

The update follows shareholder approval of the Ore Purchase Agreement with St Ives Gold Mining Company, a subsidiary of Gold Fields and the company’s major shareholder.

Highlights

• Shareholders approve Ore Purchase Agreement with St Ives Gold Mining Company
• Hampton Mining and Civil selected as preferred open pit mining contractor
• Geological model being updated following close-spaced reverse circulation drilling
• Mining Proposal/Mine Closure Plan and Clearing Permit submitted and pending decision

At a General Meeting on 6 November, shareholders approved the Ore Purchase Agreement, satisfying one of the key conditions required before mining may proceed.

The agreement remains subject to two outstanding conditions: approval of the Mining Proposal and Native Vegetation Clearing Permit by the Western Australian Department of Mines, Petroleum and Exploration, and final agreement between Lunnon and St Ives Gold Mining Company on grade control modelling, mine design and scheduling.

These conditions are required to be satisfied within four months of signing unless extended by mutual agreement.

The company has identified Hampton Mining and Civil of Kalgoorlie as the preferred tenderer for open pit mining services following a competitive tender process involving five contracting groups.

The award of the mining contract is contingent on finalisation of mine design, regulatory approvals, completion of contract documentation and board approval.

Work is progressing toward updating the geological model for Lady Herial, supported by recent close-spaced drilling at approximately 8 metres by 6 metres spacing.

Once the geological model is agreed with St Ives Gold Mining Company, Lunnon will update the Mineral Resource estimate and thereafter update its previously reported Scoping Study to reflect finalised commercial terms, contractor rates and revised geological interpretations.

Regulatory approvals are currently in progress, with both the Mining Proposal/Mine Closure Plan and the Native Vegetation Clearing Permit lodged in the September quarter.

The proposed development footprint is approximately 38 hectares and is located in an area with historical exploration and mining activity, including gold workings dating to the 1920s and more recent nickel-related infrastructure associated with the Foster underground nickel mine prior to Lunnon Metals’ ownership.

Managing Director Edmund Ainscough noted the continued momentum toward development, stating:

“We are delighted to see the momentum building as we move steadily towards commencing works at Lady Herial. Each milestone achieved takes us closer to unlocking the value of this deposit.”

Lady Herial is situated within the Foster-Baker project area, which lies in the broader Kambalda and St Ives district.

The region is recognised for its long history of production across both nickel and gold, with substantial existing mining and processing infrastructure in the area.

Lunnon Metals’ next steps include finalising the geological model, reaching agreement on the mine design and schedule under the Ore Purchase Agreement, securing regulatory approvals and converting the preferred mining contractor status into a final contract.

Progress across these items will determine the timing of the commencement of mining operations.

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