- 01Inaugural toll milling at Lucky Strike Gold Mine has commenced, with first gold expected mid-February.
- 02Project is funded by BML Ventures through a profit-share agreement and a cash advance facility.
- 03Company progresses towards production while awaiting metallurgical results from the Burns Gold Deposit.
Lefroy Exploration (ASX: LEX) has commenced its inaugural toll milling campaign at the Lucky Strike Gold Mine, a pivotal step towards near-term production and potential cash flow.
This milestone is supported by upfront funding from BML Ventures and ongoing grade control drilling.
Ore haulage to FMR Greenfields Mill in Coolgardie is occurring 24 hours a day throughout February, demonstrating the company's commitment to expediting its production timeline.
First gold production is anticipated mid-February, aligning with the elevated spot gold prices, while grade control drilling is focused on the Stage 2 South pit.
This ongoing work aims to refine geological understanding and optimise mining operations, potentially identifying further resources within the pit area.
Resource Supports Near-Term Production
The Lucky Strike Mineral Resource Estimate (MRE) comprises 1.27 Mt of ore for 79,600 oz of gold.
This robust resource underpins the current mining efforts and provides a foundation for future production.
The indicated component of the MRE is 0.70 Mt at 1.93 g/t for 43,400 oz.
Indicated resources have a higher level of geological confidence and are generally considered for mine planning.
The inferred component of the MRE is 0.57 Mt at 1.97 g/t for 36,200 oz.
Inferred resources offer further upside potential as more drilling converts them to higher confidence categories.
BML Ventures Funding Arrangement
The project is underpinned by upfront funding from BML Ventures, helping de-risk the initial development phase of the Lucky Strike Gold Mine.
The funding is structured as a mine profit-share agreement, an arrangement that typically means that BML Ventures provides capital in exchange for a share of the profits generated from mining operations, aligning interests for successful production.
A $2.5 million Profit Cash Advance Facility with BML is in place. To date, $2.0 million has been drawn, with $0.5 million remaining available.
This facility carries a fixed interest rate of 8% and supports near-term operations and exploration.
Context: Mining and Exploration Progress
Mining of the first ore panels at Lucky Strike commenced in late 2025, with ore intersected 17m below the surface, which marked the physical start of extracting gold-bearing material from the deposit.
The company is also awaiting metallurgical results for the Burns Gold Deposit, expected end-January.
These results are crucial for understanding the processing characteristics of the ore and informing potential future development pathways for the deposit.
Previous drilling at Lucky Strike has confirmed high-grade gold zones, with results such as 18m at 6.57 grams per tonne gold reported in earlier campaigns.
Lefroy Exploration is advancing towards production at Lucky Strike, leveraging BML Ventures' funding for near-term cash flow.
The company's strategy also involves further exploration and development at the Burns deposit.
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