Lefroy Exploration (ASX:LEX) has bolstered its development outlook at the Lucky Strike mine in Western Australia, reporting high-grade gold intercepts from its Phase 2 grade control drilling programme.
The results from the proposed South pit have validated existing mineralisation models while uncovering extensions outside current resource boundaries.
Top-tier results featured a standout 16-metre intersection at 3.39g/t gold from 127m, which included a high-grade zone of 2m at 11.09g/t.
The findings, predominantly within the upper 70m of the surface, suggest substantial up-plunge growth potential for the deposit.
The drilling success coincides with the conclusion of Lefroy’s maiden toll milling campaign at the regional Greenfields Mill.
Despite operational headwinds caused by unseasonal wet weather, the company processed 31,796 dry tonnes of ore at a head grade of 1.42g/t gold.
This achieved a robust 96.2% recovery rate, yielding 1,392 ounces of gold.
Under a profit-sharing partnership with BML Ventures, the revenue from this initial parcel is being utilised to retire project costs, clearing the path for future surpluses to be split equally between the two parties.
Managing Director Graeme Gribbin noted that the results provide a "strong endorsement" of the company's mineral resource estimate, which currently stands at 1.27 million tonnes at 1.95g/t gold.
At the time of reporting, Lefroy Exploration’s share price was $0.20.