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Lunnon Metals Limited has reported a 20% increase in gold ounces and a 21% rise in tonnes at its Hustler gold deposit within the Kambalda Gold & Nickel Project, situated in Western Australia's Eastern Goldfields. The revised mineral resource estimate totals 826,000 tonnes at 1.4 grams per tonne, containing 36,200 ounces of gold. This update coincides with ongoing mining activities at the nearby Lady Herial open pit and efforts to integrate Hustler into future mining plans.
Key Points
- Lunnon Metals Limited (ASX:LM8) manages the Kambalda Gold & Nickel Project, located 570 kilometres east of Perth in Western Australia's Eastern Goldfields.
- Hustler mineral resource now stands at 826,000 tonnes grading 1.4 g/t Au for 36,200 ounces, marking a 20% increase in gold ounces and 21% growth in tonnes from the previous estimate.
- The updated resource includes 171,000 tonnes of Indicated Resource at 1.3 g/t Au for 7,000 ounces and 655,000 tonnes of Inferred Resource at 1.4 g/t Au for 29,200 ounces as of 28 July 2026.
- Lady Herial mineral resource is currently 651,000 tonnes at 2.1 g/t Au for 43,100 ounces after mining depletion to 30 June 2026, with about two months of mining remaining.
- The combined group gold mineral resource totals 1.48 million tonnes at 1.7 g/t Au for 79,300 ounces.
- Lunnon Metals is progressing a $13 million drilling campaign and continues engagement with partners including St Ives Gold Mining, Hampton Mining & Civil, and Goldfields Technical Services.
Hustler Gold Deposit Discovered from First Post-IPO Drill Hole in 2021
Following its ASX listing in June 2021, Lunnon Metals uncovered the Hustler gold deposit with its initial drill hole. In August 2021, the first diamond drill hole FOS21DD_001, originally targeting nickel near the historic Foster mine, intersected an unrecognized gold structure. This intersection yielded 7.84 metres true width at 1.50 grams per tonne gold from 166 metres depth. The deposit was named Hustler after a 1920s mining lease in the area.
Since discovery, Lunnon Metals has completed 90 additional reverse circulation and diamond drill holes totaling over 6 kilometres in the immediate vicinity. These extensive infill and follow-up drilling efforts have delineated the deposit and supported the current mineral resource estimate. Additionally, 18 aircore holes totaling 545 metres were drilled in 2025, though these results were excluded from the updated resource estimate. This systematic exploration has converted a chance find into a well-defined mineral resource ready for further development.
Infill Drilling Drives Significant Growth in Hustler Mineral Resource
The updated Hustler mineral resource estimate, released on 28 July 2026, shows substantial growth compared to the prior estimate from 12 March 2026. The deposit now contains 826,000 tonnes at an average grade of 1.4 grams per tonne gold, equating to 36,200 ounces. This represents a 20% increase in gold ounces and a 21% rise in tonnes, highlighting the success of targeted infill drilling in expanding and better defining mineralized zones.
The resource is divided into Upper and Lower zones, each representing different gold mineralisation styles. The Indicated Resource includes 171,000 tonnes at 1.3 g/t Au for 7,000 ounces, suitable for near-term mine planning. The larger Inferred Resource comprises 655,000 tonnes at 1.4 g/t Au for 29,200 ounces, based on limited geological data requiring further exploration. The increase in Inferred Resource reflects deeper model extensions from infill drilling, while a slight decrease in Indicated Resource results from narrower intervals found in shallower drilling.
Lady Herial Open Pit Maintains Mining with Updated Resource Figures
Lunnon Metals continues mining the Lady Herial gold deposit via an open pit approximately 400 metres northwest of Hustler. Gold ore from Lady Herial is sold to St Ives Gold Mining Co. Pty Ltd, a wholly owned subsidiary of Gold Fields Limited, under an Ore Purchase Agreement. St Ives also holds a 30.15% stake in Lunnon Metals, creating strategic alignment. This arrangement provides financial benefits and steady cash flow to support exploration and development.
As of 30 June 2026, the Lady Herial mineral resource stands at 651,000 tonnes grading 2.1 g/t Au for 43,100 ounces after mining depletion, unchanged from the 27 February 2026 estimate. The ore reserve, representing near-term extraction, contains 82,700 tonnes at 2.1 g/t Au for 5,600 ounces, with roughly two months of mining left at that date. These figures illustrate how active mining reduces available resources while the broader estimate underpins future mining evaluations.
Potential for Integrated Mining Between Hustler and Lady Herial
Lunnon Metals sees a major opportunity to integrate Hustler with potential second-stage mining at Lady Herial, extending productive operations. Located about 400 metres southeast of the active Lady Herial pit, Hustler offers operational synergies for combined mining. The company is advancing permitting and technical studies to assess developing Hustler as a standalone open pit alongside expanded Lady Herial mining.
Managing Director Edmund Ainscough commented, "Hustler and a possible cut-back at Lady Herial are sitting in pole position as the next potential development opportunities." The company is expediting permits and maintaining talks with mining partners including St Ives Gold Mining, Hampton Mining & Civil, and Goldfields Technical Services to collaborate on future operations. The success of Lady Herial mining provides a proven model for similar activities at Hustler, supporting the company’s development strategy. Technical and financial analyses continue to optimize the Hustler resource for potential open pit development.
Group Gold Mineral Resource Totals 79,300 Ounces Across Multiple Deposits
Lunnon Metals’ combined gold mineral resource across its Kambalda Gold & Nickel Project deposits totals 1.48 million tonnes at 1.7 grams per tonne gold, containing 79,300 ounces. This includes the updated Hustler resource of 36,200 ounces and the depleted Lady Herial resource of 43,100 ounces, plus other mineralised zones. The multiple deposits at various stages offer a portfolio approach, enabling sequencing or simultaneous mining to optimize cash flow and project economics.
The resource estimation complies with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), ensuring adherence to Australian industry standards and ASX disclosure rules. Lunnon Metals conducted the Hustler resource estimate internally using geological interpretations and 3D models based on extensive drilling data accumulated since discovery.
Project Location and Tenure in Eastern Goldfields
The Kambalda Gold & Nickel Project is located in Western Australia’s Eastern Goldfields, approximately 570 kilometres east of Perth and 50 to 70 kilometres south-southeast of Kalgoorlie. The project lies within one of Australia’s richest gold-producing areas, featuring established mining infrastructure, skilled workforce, and regulatory familiarity. It covers about 47 square kilometres across two exploration licence parcels, providing a substantial landholding for exploration and development.
The region hosts numerous operating and historic mines, including the world-renowned Kalgoorlie Super Pit, offering geological context and infrastructure advantages. Proximity to major population centres, ports, and transport networks supports operational logistics and reduces development risks.
$13 Million Drilling Campaign Advances Exploration and Development
Lunnon Metals is executing a $13 million drilling program to progress exploration and development at the Kambalda Gold & Nickel Project. Managing Director Edmund Ainscough stated, "With a strong and growing cash balance, and a $13 million drill campaign already underway, shareholders can expect robust news flow throughout the coming months." This investment underscores the company’s commitment to expanding mineral resources and enhancing geological understanding.
The campaign includes exploration drilling to test new targets and infill drilling to upgrade resources from Inferred to Indicated categories, supporting development progression. The company’s growing cash reserves, supported by ongoing gold sales from Lady Herial, provide financial flexibility to execute the program without immediate capital raising needs.
Strategic Alliances with Gold Fields and Mining Service Providers
Lunnon Metals has formed strategic partnerships with Gold Fields Limited and specialist mining service providers to support project development. St Ives Gold Mining Co. Pty Ltd, a Gold Fields subsidiary, holds a 30.15% stake in Lunnon Metals and purchases ore from Lady Herial under an Ore Purchase Agreement. This alliance offers financial stability and operational expertise from a major mining company.
Additionally, Lunnon Metals collaborates with Hampton Mining & Civil and Goldfields Technical Services for mining operations and technical support. Managing Director Edmund Ainscough noted plans to "discuss ongoing collaboration with our current partners with a view to reproducing that success in FY2027," aiming to replicate Lady Herial’s operational achievements at Hustler or in expanded mining.
Compliance and Resource Estimation Standards
Lunnon Metals completed the Hustler mineral resource estimate in line with ASX Listing Rule 5.8.1 and the 2012 JORC Code, ensuring transparency and accuracy in reporting. These standards guarantee that resource figures are reasonable estimates based on geological and drilling data, subject to inherent uncertainties.
The internal estimation used geological interpretations and 3D models developed by Lunnon Metals staff from drilling and geological observations. A 0.5 grams per tonne gold cut-off grade was applied, a common threshold distinguishing mineralised from unmineralised material. Detailed JORC Code Table 1 disclosures accompany the estimate, covering sampling, data compilation, geological interpretation, and resource classification to support transparency and data quality.
