Lefroy Exploration (ASX: LEX) has returned significant shallow assays from Phase 2 grade control drilling at the proposed South pit within its Lucky Strike mine development in Western Australia.
Drilling at the south of the mine aimed to confirm and refine the project’s known mineralisation resource envelopes and identify the potential for additional mineralised corridors along the north and eastern flanks of the pit, predominantly within the top 70 metres from surface.
Notable assays were 16m at 3.39 grams per tonne gold from 127m including 2m at 11.09g/t from 138m, 11m at 2.92g/t gold from 41m including 5m at 4.55g/t from 42m, and 17m at 1.64g/t gold from 43m including 1m at 10.9g/t from 46m.
Numerous intersections were recorded outside the Lucky Strike resource wireframe, with highlights of 3m at 7.18g/t gold from 26m including 1m at 18.3g/t from 26m, 8m at 1.97g/t gold from 78m including 1m at 7.83g/t from 78m, and 2m at 8.42g/t gold from 26m including 1m at 12.1g/t from 26m.
Lefroy believes the results underpin the exploration upside and growth potential of the Lucky Strike deposit up-plunge from known resource envelopes.
Ore Processing Campaign
Lefroy recently commenced the first toll milling campaign at Lucky Strike, processing a total of 31,796 dry tonnes at a reconciled head grade of 1.42g/t gold for 1,392 recovered ounces, with a calculated reconciled gold recovery of 96.2%.
Ore tonne throughput was lower than expected due to wet weather conditions elevating groundwater flows in the upper ore panels and impacting mining and haulage, including a short suspension in milling at the regional Greenfields Mill owned by FMR Investments.
In mid-2025, Lefroy announced that a one-month toll milling slot between FMR and mine profit share partner BML Ventures had been finalised to process ore from Lucky Strike using the Greenfields Mill.
BML continues to cover upfront expenses related to the Lucky Strike operation, with all revenue from the first toll milling parcel used to repay a substantial portion of incurred costs.
Future toll milling parcels will allow surplus cash from the project to be shared equally between BML and Lefroy.
Strong MRE Endorsement
Managing director Graeme Gribbin called the results “a strong endorsement not only of the company’s mineral resource estimate (MRE) but of the grade control practices undertaken by BML.”
“With ore stockpiles growing on site in support of subsequent toll milling parcels, and with the company securing an additional $0.5 million in funding from our profit cash advance facility agreement with BML, we are well placed to recover more gold ounces from Lucky Strike […] and through our ongoing exploration and resource expansion activities, particularly at Mt Martin and Burns,” he added.
Lucky Strike contains a mineral resource estimate of 1.27 million tonnes at 1.95g/t gold for 79,600 ounces.
This includes an Indicated 0.70Mt at 1.93g/t for 43,400oz and an Inferred 0.57Mt at 1.97g/t for 36,200 oz.
