Lunnon Metals (ASX:LM8) has completed a feasibility study on its Lady Herial gold deposit, part of the Kambalda Gold & Nickel Project, confirming robust economics and strong cashflow potential.
The study, an update from the June 2025 scoping study to a feasibility study level (+/-15% accuracy), focused entirely on the proved ore reserve and incorporated detailed mine designs, schedules, and tendered contract rates.
The analysis highlights Lady Herial as a short-life, high-grade open pit capable of being mined and processed within 8–10 months.
The initial ore reserve stands at 268,250 tonnes at 1.89 g/t gold, yielding approximately 16,270 ounces, with 14,806 ounces recoverable.
The pit is designed with a low strip ratio of 5.9:1, producing gold at a highly competitive all-in-cost of $2,354/oz.
Financial modelling shows strong pre-tax free cash flow of $40.4M at $6,250/oz gold, rising to $42.9M at $6,500/oz and $47.9M at $7,000/oz, with the current spot gold price around $6,900/oz.
Managing Director Edmund Ainscough emphasised that Lady Herial represents the beginning of Lunnon Metals' growth journey, noting its strategic position within one of Australia’s premier gold camps.
The feasibility study confirms Lady Herial as a compelling, high-margin opportunity, underpinned by a fully JORC-compliant mineral resource.
At the time of reporting, Lunnon Metals' share price was $0.47.