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Highlights
- Lunnon (LM8) outlines a financially promising open-pit gold project
- Scoping Study forecasts strong pre-tax cashflow from Lady Herial
- High-grade resource discovered at shallow depth in WA
Lunnon Metals (ASX:LM8) has released results from its recent Scoping Study, confirming that the Lady Herial gold prospect in Western Australia presents a financially attractive short-term mining opportunity. This high-grade deposit, discovered through initial drilling in February 2024, is located in one of Australia’s most prolific gold regions — the St Ives/Kambalda district.
According to the company, Lady Herial is an outcropping and shallow gold deposit with strong economic potential. The Scoping Study outlines that the project could generate a pre-tax cashflow of $44.7 million. This projection fluctuates between $37.3 million and $52.1 million, depending on gold prices ranging from $4,500 to $5,000 per ounce. The forecast includes an all-in sustaining cost of $2,100 per ounce, suggesting attractive margins even in fluctuating gold markets.
The optimisation analysis within the study identified potential mining scenarios ranging between 210,000 tonnes at 2g/t and 355,000 tonnes at 1.8g/t. A straightforward mine design with a low-strip ratio of 6.1:1 outlines the extraction of around 300,000 to 320,000 tonnes at an average grade of 1.8g/t, translating to 18,000 ounces of gold.
Importantly, the study is based almost entirely on resources classified in the measured and indicated categories, enhancing the reliability of its economic assumptions. The broader Lady Herial resource comprises approximately 573,000 tonnes at 1.6g/t, containing an estimated 29,000 ounces of gold.
Lunnon Metals, which currently holds a market capitalisation of approximately $45.22 million, has signalled that the forecasted project may be modest in scale but offers robust financial returns for a short-mine-life venture. The management team is now shifting its exploration efforts toward locating additional high-value gold targets across the region.
To progress Lady Herial to production, an estimated $5–10 million in funding will be required. Once commercial agreements are executed, further evaluation may follow to refine development plans.
As part of its broader investor engagement, Lunnon Metals will be showcasing updates at the upcoming Noosa Mining Investor Conference, scheduled for July 23–25 at the Peppers Noosa Resort.
This development reinforces the strategic value of Lunnon’s gold and nickel exploration efforts in a historically rich mining district known for its longstanding contribution to Australia's gold output.
