Lunnon Metals greenlights Lady Herial mine after feasibility study
Lunnon Metals (ASX:LM8) has approved the final investment decision for its Lady Herial Project after completing a feasibility study and confirming that the ore purchase agreement with major shareholder St Ives Gold Mining is now unconditional.
The study, released to the ASX on Jan, 16, highlighted strong economics for a short-life, high-grade, low strip ratio open pit, with operating pre-tax free cash flow projected at $40.4 million at $6,250/oz, $42.9 million at $6,500/oz, and $47.9 million at $7,000/oz. Current spot gold prices sit around $6,900/oz.
With the FID approved, Lunnon Metals is set to execute mining contracts with Hampton Civil and Mining for mining operations and Goldfields Technical Services of Kalgoorlie for statutory roles, blast design, dig plans, and mine geology.
Once contracts are finalised, mining is expected to commence promptly.
Non-Executive Chair Liam Twigger said, “Approving the FID is a proud moment for Lunnon Metals. Moving from discovery to production in under two years demonstrates the drive and capability of our management team and provides a strong platform to deliver shareholder value.”
At the time of reporting, Lunnon Metals' share price was $0.48.
More from Australia
Capital battles heat up as takeover offers challenge listed housing operators
The equities fueling the next infrastructure supercycle
Crypto networks collide with sanctions in a fight for financial access
American Tungsten completes Nexus acquisition for Pinnacle MOU
Butn extends MYOB invoice financing agreement to 2027
Celsius Resources updates market on US$5M dispute
