Lunnon Metals has completed a feasibility study on the Lady Herial gold deposit at the Kambalda project in Western Australia, outlining eight to 10 months of mining with an initial ore reserve of 268,250,000 tonnes of gold.
The Lady Herial gold deposit is the company’s first gold discovery at its Kambalda gold and nickel project.
The feasibility study showed that deposits at Lady Herial can be mined and processed within eight to 10 months with just a simple, low strip ratio open pit.
Lunnon forecast earning AU$40.4 million in operating free cash flow, assuming a gold price of AU$6,250 per ounce,
The modelled all-in-cost is AU$2,354 ounce per gold produced.
Lunnon said the Lady Herial deposit is well-positioned to allow the company to capitalise on the current high gold price environment.
Lunnon Managing Director Edmund Ainscough said: “All Lunnon Metal staff, its contractors and shareholders now sit keenly waiting for mining to start and get this show on the road; but also a reminder, we consider Lady Herial to only be the start of the journey, not the end.
“Whenever I get the chance, I remind investors that St Ives has produced over 16 million ounces of gold now.
“If it was owned and operated by an ASX listed company, it could be one of the ASX’s great gold companies – but it isn’t, and if investors are seeking exposure to a company that owns mining leases in the middle of this great camp, a reminder….Lunnon Metals is the only ASX listed company that can make such a boast.”
Lunnon’s board is now set to approve a final investment decision, enabling contracts to be signed and open-pitmining to commence.
