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Highlights
- Strategic Partnership: Lefroy Exploration and BML Ventures sign a profit-sharing deal to accelerate gold mining at the Lucky Strike Project near Kalgoorlie.
- Operational and Financial Structure: BML Ventures will manage all mining operations and funding, while net surplus cash will be shared equally between both companies.
- Upcoming Developments: Drilling program set for late February, with mining operations expected to commence in the second half of 2025.
Lefroy Exploration Limited (ASX:LEX) has announced a significant profit-sharing mining agreement with BML Ventures Pty Ltd, marking a crucial step in advancing the Lucky Strike Gold Project. The project, located 60km southeast of Kalgoorlie, boasts a Mineral Resource Estimate (MRE) of 1.27 million tonnes at 1.95 g/t gold, totaling 79,600 ounces.
Under the agreement, BML Ventures will act as the statutory Mine Operator, overseeing all mining activities, regulatory approvals, and funding requirements. This includes capital investments and operating costs needed to bring the project into production. In return, net surplus cash—calculated after deducting all expenses—will be evenly split between Lefroy Exploration and BML Ventures, ensuring a 50-50 profit-sharing model.
Advancing Towards Production
Negotiations to secure toll milling production partnerships are already at an advanced stage, with further updates expected in the March quarter. This development is seen as a crucial component in optimizing the processing and profitability of the Lucky Strike mine.
In addition, a 3,000-metre reverse circulation (RC) drilling program is scheduled to begin in late February. The objective of this drilling campaign is to refine resource models, unlock additional value, and provide critical data for final mine planning.
This agreement aligns with Lefroy’s broader mission of unlocking value from its +1 million-ounce gold resource base through strategic partnerships and resource expansion. The deal also comes at a time when gold prices have surged to an all-time high of AU$4,600 per ounce, further enhancing the project’s financial outlook.
Market Reaction and Future Prospects
Following the announcement, Lefroy Exploration’s share price surged by 10% on February 12, 2025, reaching 8.7 cents per share.
