Mining of the first ore panels at Lefroy Exploration's (ASX:LEX) Lucky Strike Gold Deposit, near Kalgoorlie in Western Australia, is now underway.
The initial ore has been intersected 17m below the surface (275m RL), with run-of-mine stockpiles being built throughout January in preparation for ore haulage.
Lefroy has secured a toll milling agreement with FMR Investments at the Greenfields Mill in Coolgardie, covering an initial 80,000–90,000 tonnes of ore. Processing of Lucky Strike ore is scheduled to begin in February.
The Lucky Strike deposit hosts a mineral resource estimate of 1.27 million tonnes at 1.95 g/t gold for 79,600 ounces, comprising 0.70Mt @ 1.93 g/t Au (43,400 oz) indicated and 0.57Mt @ 1.97 g/t Au (36,200 oz) inferred.
Lefroy CEO Graeme Gribbin said "In partnership with BML Ventures, Lefroy is now officially a gold miner in the Kalgoorlie district. This milestone marks a pivotal moment for the company as we prepare for ore haulage and first gold production, scheduled for February. With gold prices recently reaching $3,700 per ounce, the timing could not be better for a first-time producer."
Lefroy has partnered with BML Ventures through a profit-sharing agreement and a $2.5 million profit cash advance facility to support mining operations at Lucky Strike.
At the time of reporting, Lefroy Exploration's share price was $0.27.