Lefroy Exploration Advances Towards Stage 1 Start-Up at Lucky Strike Gold Project

Lefroy Exploration (ASX: LEX) has achieved major milestones at its Lucky Strike gold project in the lead-up to the start of Stage 1 operations before year end.

Lucky Strike contains a mineral resource estimate of 1.27 million tonnes grading 1.95 grams per tonne gold for 79,600 ounces, including an indicated 700,000t at 1.93g/t for 43,400oz and an inferred 570,000t at 1.97g/t for 36,200oz.

The company is considering the possibility of a larger Stage 2 pit at Lucky Strike, completing two diamond drill holes in July to test the potential for a deeper development at the site.

Extensive Preparatory Work

Lefroy has conducted heritage surveys across the entire mining project area, incorporating optimisation designs for the proposed Northern Pit, as well as nearby mine ore pad and waste rock dumps.

The company expects to complete production schedules and budgets this month and has plans in place to commence earthworks in the December quarter.

A clearing permit application for the Lucky Strike mining lease is currently in the final stages of environmental assessment and on target for completion by year end.

‘Self-Funded Growth Strategy’

Lefroy chief executive officer Graeme Gribbin said the start of mining would represent a change of status for the company.

“As we diligently complete our last approvals and permitting prior to gold operations commencing at Lucky Strike, we enter a new phase of our evolution whereby profit from this project will enable us to pursue a self-funded growth strategy,” he said.

“Generating cash flow from Lucky Strike and establishing a strong sustained cash balance will allow us to unlock further value from our portfolio of advanced high-grade projects at Burns and Mt Martin, as well as our highly-prospective exploration targets.”

Burns Gold Zone

The Burns deposit sits within the broader Lefroy gold project, nearby to Vault Minerals’ (ASX: VAU) Daisy Milano and Mt Monger gold operations.

Lefroy has confirmed the presence of a high-grade zone within the existing Burns Central mineral resource estimate of 4.22Mt at 1.18g/t gold for 159,285 contained ounces across oxide, transitional and fresh mineralisation categories within 200m of surface.

The company believes this underexplored zone represents significant potential to grow the mineral resource along strike to the north and south.