Lunnon Metals (ASX:LM8) has announced a maiden resource estimate for the Lady Herial gold deposit, marking the company’s first discovery at its Kambalda Gold and Nickel Project in Western Australia. Initial drilling results from February 2024 indicate a resource of 573,000 tonnes at 1.6 grams per tonne gold, totaling 29,000 ounces. This includes a measured resource of 270,000 tonnes at 1.9g/t gold for 16,600 ounces. Lunnon Metals, with a market capitalization of $50.74 million, is currently awaiting regulatory approval for open pit results and plans further infill drilling to refine the Mineral Resource Estimate (MRE).
The company aims to eliminate the need for grade control through this additional drilling. Lunnon believes a successful open pit mine, leveraging its existing cash balance, will enable a sustainable program for future gold opportunities. Managing Director Edmund Ainscough expressed surprise at the gold price levels found in the Lady Herial deposit, noting advanced technical studies are underway to assess the potential financial benefits of mining Lady Herial. Lunnon has an agreement with Gold Fields (JSE:GFI) to vary an existing right of pre-emption on gold material from the deposit, paving the way for potential processing collaboration.
