Lunnon Metals (ASX:LM8) has received the final regulatory approval from the Western Australian Department of Mines, Petroleum and Exploration for the proposed Lady Herial open pit development, the company's first gold discovery at its Kambalda Gold & Nickel Project.
The Native Vegetation Clearing Permit, effective Jan. 8, satisfies the last regulatory condition precedent to Lunnon Metals' recently signed ore purchase agreement with major shareholder St Ives Gold Mining.
Lady Herial is a high-grade, thick gold deposit with shallow outcropping, located on granted mining leases near established infrastructure.
The project has progressed rapidly, with just 20 months between the first drillhole in May 2024 and regulatory approval.
The final mine schedule, currently being agreed with SIGM, remains the last condition precedent to the OPA.
Once finalised, the feasibility study can be completed, enabling the board to make a final investment decision and commence mining.
Under the OPA, SIGM will treat all material exceeding 0.5 g/t Au at its nearby Lefroy Gold Plant, with Lunnon Metals entitled to 70% of subsequent free cash flow after both parties’ costs are recovered.
At the time of reporting, Lunnon Metals' share price was $0.40.