Lady Herial High-Grade Intercepts Confirm Pit Extension
Lunnon Metals (ASX: LM8) has reported impressive new drilling results from the Lady Herial deposit, part of the company's Kambalda gold-nickel project.
Key intercepts include 13m at 5.70 g/t Au, 13m at 5.63 g/t Au, 10m at 5.88 g/t Au, and 9m at 3.62 g/t Au.
These strong results confirm a thick, high-grade Upper Structure that extends over 40-50m of strike and at least 150m down-plunge below the existing pit design.
This firmly supports the potential for a cut-back beyond the current open pit.
The mineralisation confirmed around the historical 1920s shaft will see the mineralisation model updated for review under the ore purchase agreement with SIGM.
The potential for a cut-back to the northwest may benefit from expedited regulatory approvals, as the new areas largely sit within the permitted development footprint.
Mining Commences, First Ore Imminent
Mining operations at Lady Herial have officially commenced, marking a significant step for Lunnon Metals.
Site establishment and clearing activities are now complete.
The company anticipates the mining of its first gold ore later this month.
This ore will be delivered under the Ore Purchase Agreement with SIGM and processed at Gold Fields' Lefroy facility, positioning Lunnon Metals for near-term cash flow generation.
Working Capital Secured for Pre-Production
To support its Lady Herial development, Lunnon Metals has secured a $6 million AUD term loan facility.
The funding comes from Bedrock Alpha Credit Income Fund.
These funds are earmarked for general working capital, including crucial pre-production costs and site establishment for the Lady Herial project.
The facility is repayable eight months after drawdown and is secured against project assets, with no hedging requirements.
This provides a clear pathway for early-stage development.
Strategic Gold Pivot Underpinned by Annual Report
Lunnon Metals has significantly advanced its strategic pivot towards gold exploration and development, delivering a maiden gold Mineral Resource at Lady Herial of 29,000 oz.
A positive Scoping Study, announced on 16 June 2025, highlighted robust economics for a shallow open pit.
This study projected potential recovered gold of between 18,000 oz and 19,700 oz with an all-in-cost around $2,100 per ounce, laying the groundwork for near-term cash flow.
The company’s board approved a Final Investment Decision in January 2026.
Further reinforcing its long-term strategy, Lunnon Metals has renewed its mining licences through to December 2046 and executed a Land Access Deed with the Ngadju People, supporting robust project development.
Lady Herial Progress Bolsters Gold Strategy
Lunnon Metals' Lady Herial project is advancing rapidly, with new high-grade intercepts reinforcing the potential for a pit cut-back and mining operations now underway.
The recent securing of working capital, coupled with an established ore purchase agreement, positions the company for near-term cash generation as it continues its strategic pivot towards gold.
