Lunnon Metals (ASX:LM8) positions Lady Herial for near-term gold production in the heart of St Ives

As gold prices continue to hold near decade highs, investor interest is sharpening around advanced stage, high margin development opportunities in Australia’s most prolific mining districts.

One such project is Lady Herial, located in the heart of the St Ives gold camp near Kambalda, Western Australia.

In this Q&A, we speak with Edmund Ainscough, Managing Director of Lunnon Metals (ASX:LM8), to discuss the company’s recently completed Scoping Study, the pathway to near-term production, and the broader potential across the Foster Gold Belt.

With a strong connection to local infrastructure, a supportive major shareholder in Gold Fields, and a track record of execution, Lunnon is positioning Lady Herial as more than a one off opportunity it could be the start of something much larger.

What makes Lady Herial a standout opportunity in today’s gold environment?

Lady Herial stands out because it hits that rare sweet spot in gold development, it is shallow, high grade, and located adjacent to world class infrastructure.

The project is just 7.5 kilometres by road from the Lefroy processing plant, which is owned by our major shareholder Gold Fields.

This proximity significantly reduces both the cost and complexity of moving into production.

From a JORC Code perspective, the study is supported by 99 percent Measured and Indicated material, reflecting exceptionally high confidence in the geological model.

The mine design is straightforward, with a low strip ratio and robust economics that hold up even at conservative gold prices.

Together, these factors position Lady Herial as a genuine near term development opportunity in a market that rewards high margin projects with short lead times.

“Lady Herial is a very real, near term opportunity in a market that is rewarding short lead time, high margin projects.”

Importantly, this is happening in a region with a 50 year mining history, we are not promoting a remote or untested jurisdiction.

This is Kambalda, this is St Ives, this is a location where mines have consistently delivered.

How does the Scoping Study support commercial discussions with Gold Fields?

The quality and depth of the Scoping Study provide a strong and credible foundation for our commercial discussions with Gold Fields.

Every element of the study has been prepared using real data and practical inputs, not assumptions drawn from other regions.

Contract rates specific to the Kambalda region and haulage costs from existing service providers ensure the model reflects accurate and localised conditions.

The study is also underpinned by real drilling data, we completed a tightly spaced drill program with the aim of taking Lady Herial as close to production ready as possible.

The resulting pit design is based almost entirely on Measured and Indicated material, which gives both parties high confidence in the outcomes.

Gold Fields knows this region as well as we do, many members of our team have worked in and around the area for years, and there is already a shared understanding of how to efficiently develop a small, high grade pit.

We are now using the study to formalise the framework for processing ore at Lefroy, with a commercial structure that is fair and value accretive for both companies.

When can mining realistically commence?

If everything proceeds as expected, we believe mining could commence within the coming financial year, this is not a multi year development story.

Lady Herial is shallow, straightforward, and located on granted mining leases, which helps accelerate the development timeline.

We already have a heritage agreement in place with the Ngadju people, key state government approvals, including the Mining Proposal, Closure Plan and Clearing Permit, are well advanced.

Environmental licences covering water extraction and dewatering have also been granted.

Once the commercial processing agreement with Gold Fields is finalised and funding is secured on terms that work for shareholders, there are no major hurdles remaining.

With a six month mine life, we are focused on maintaining momentum and bringing this gold into production while the price remains favourable.

Is there upside beyond this Scoping Study?

Absolutely, that is one of the most exciting parts of the story.

While Lady Herial may be modest in scale, it has already demonstrated our team’s ability to make high value discoveries in the St Ives gold camp.

This was our first gold discovery, and we progressed it from the first drill hole result to a completed Scoping Study in just 14 months, that is no small achievement.

We now have a strong cash generation opportunity in front of us and a clear platform for further exploration.

“We are the only ASX listed company who own granted mining leases in the middle of this gold camp.”

St Ives has produced more than 16 million ounces, and we are positioned right in the heart of it.

Lady Herial is what we hope will be the first of several similar opportunities along the Foster Gold Belt, we already have nearby targets that exhibit similar geological characteristics.

With the right team, access, and knowledge, we are well positioned to continue exploring in the most prospective areas.

Our renewed focus on gold is delivering, and we believe Lady Herial is just the beginning.

How is the project expected to be funded?

We expect the funding required to bring Lady Herial into production will range between five and ten million dollars, which is relatively modest for a gold development.

We have a strong cash balance, and since listing in 2021, we have consistently raised capital efficiently when needed.

We are evaluating a range of funding options, including equity, debt, or a combination of both.

The scale of the funding requirement is manageable, particularly given that the base case scenario shows Lady Herial generating more than forty million dollars in pre tax free cash flow on a 100 percent basis.

“This is a short life, high return opportunity in a stable jurisdiction with a supportive major shareholder and clear visibility on timing.”

All of these factors put us in a strong position to secure the right capital, deliver shareholder value, and move the project forward without delay.

The Path Forward

With a high-grade, low capex development opportunity sitting just 7.5 kilometres from the mill gate, Lady Herial is shaping up as one of the few gold projects capable of moving rapidly from study to production.

Supported by a robust Scoping Study, real data from tightly spaced drilling, and advanced permitting, Lunnon Metals is ready to move.

As Ainscough outlines, the value is not just in the ounces already defined, but in the company’s unique position within the St Ives gold camp a region that has delivered more than 16 million ounces to date.

If Lady Herial is any indication, Lunnon’s exploration and development strategy may have only just begun to unlock the belt’s full potential.

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