Promising High-Grade Results Strengthen Lunnon's Gold Strategy in Kambalda
Lunnon Metals Limited (ASX: LM8) has announced significant gold assay results from its Hustler prospect and provided an update on its Exploration Incentive Scheme (EIS) drilling programme at Defiance West, both priority targets within the company's Kambalda Gold & Nickel Project (KGNP). The latest results further strengthen Lunnon Metals' gold exploration in Kambalda, which began in early 2024, as the company seeks to replicate its success at the nearby Lady Herial deposit.
These developments come as Lunnon continues to expand its strategic footprint in one of Australia's most prolific mining regions, with a dual focus on both gold and nickel assets.
Hustler Prospect Delivers Multiple High-Grade Gold Intercepts
Infill drilling at the Hustler prospect, conducted at 20m x 20m spacing, has returned several significant gold intercepts, confirming a robust mineralised structure. Key results include:
- 20m @ 1.48g/t Au (from 34m)
- 4m @ 2.95g/t Au (from 26m)
- 3m @ 1.97g/t Au (from 46m)
- 6m @ 1.07g/t Au (from 28m)
- 12m @ 0.56g/t Au (from 17m) and 13m @ 0.70g/t Au (from 36m)
These results complement previously reported intercepts from March 2025, which included 11m @ 2.15g/t Au and 20m @ 0.98g/t Au.
Geological interpretation indicates Hustler has two dominant gold structures, unlike the stacked structures seen at Lady Herial. The main structure is thicker with sub-horizontal components near surface, while a second structure in the footwall dips gently to the northwest, similar to Lady Herial.
"Hustler is firming up nicely with each round of drilling. To be able to step into 20m x 20m spacing certainly helps resolve the geological and structural interpretation quickly," said Edmund Ainscough, Managing Director of Lunnon Metals.
Strategic Location and Development Potential
Hustler is located just 400m southeast of the Lady Herial deposit on granted mining leases with abundant nearby infrastructure. Like Lady Herial, it represents a potentially outcropping to very shallow, gently dipping gold prospect discovered by Lunnon Metals.
Furthermore, the strategic location provides Lunnon Metals with significant operational advantages for potential future development, including existing infrastructure and proximity to other successful operations in the area.
The Hustler prospect is part of Lunnon's broader gold exploration in Kambalda, which has gained momentum following the company's promising results at Lady Herial.
Replicating the Lady Herial Success Model
Lunnon Metals' gold exploration in Kambalda at Hustler and other near-surface gold prospects in the Foster Gold Belt aims to replicate its success at Lady Herial, where a recent Scoping Study indicated that a modest-sized, low strip ratio open pit could generate:
- 300kt-320kt of ore grading approximately 1.8g/t Au
- Containing around 18,000 ounces of gold
- Potentially delivering approximately A$45 million in free cash (at A$5,000/oz gold price)
This approach could enable Lunnon Metals to self-fund exploration of higher-risk, higher-reward targets like Defiance West, as it seeks to discover the next significant gold deposit in the +16Moz St Ives gold camp.
Defiance West EIS Update: Structural Complexity Enhances Prospectivity
Drilling of the second diamond drill hole in the EIS co-funded programme at Defiance West has been completed to a depth of 867.0m. While no significant gold zones have been observed in this hole (with many assays still pending), the drilling has revealed:
- Anomalous silver, copper, and zinc intervals within an iron-sulphide rich sediment zone
- Unexpected structural complexity, with the Foster Thrust intersected earlier than anticipated
The structural complexity discovered is considered an important pre-requisite to the formation of significant gold deposits, maintaining the prospectivity of the target despite the absence of significant gold in the second hole.
Understanding the Geology for Future Discovery
The EIS programme represents the first deep diamond holes in an area surrounded by prolific gold mineralisation. The wealth of new geoscientific data collected will guide future Lunnon Metals gold exploration in Kambalda, specifically in this essentially untested 4km² area immediately down-plunge of the extensive multi-million ounce Victory-Defiance-Conqueror mineralised system.
What is the Exploration Incentive Scheme?
The Exploration Incentive Scheme is a Western Australian Government initiative that provides co-funding for innovative exploration drilling projects. By supporting companies like Lunnon Metals in their early-stage exploration efforts, the scheme aims to encourage the discovery of new mineral deposits and stimulate future mining investment in the state.
The co-funding helps reduce the financial risk associated with deep exploration drilling, which is essential for testing geological concepts and identifying potential new resource areas that might otherwise remain unexplored.
Gold Mineralisation in the Kambalda Region
The Kambalda region is known for hosting two main types of mineral deposits: Archaean greenstone gold deposits and 'Kambalda' style komatiitic nickel sulphide deposits.
Gold mineralisation in the area typically occurs within specific geological structures and rock types. At Hustler, the gold appears to be hosted in two distinct structures within the Defiance Dolerite units, specifically at the upper margin of what's known as Zone 5.
In addition, the company's geologists note that Zone 4 (which hosts the majority of gold mineralisation at Lady Herial) is likely to be an even more favourable target for future drilling as Lunnon Metals continues its gold exploration in Kambalda.
The gold typically appears in association with specific alteration minerals and structural features such as folding and faulting, which create pathways for mineralising fluids. Understanding these relationships is crucial for effective exploration and resource definition.
Why Investors Should Watch Lunnon Metals
Lunnon Metals represents a compelling opportunity for investors interested in gold exploration stocks for several reasons:
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Strategic Location: The company's projects are situated in one of Australia's most prolific gold camps, with +16Moz of gold mined to date.
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Two-Tier Approach: Lunnon is pursuing both near-term production potential through shallow gold deposits like Lady Herial and Hustler, while simultaneously exploring for larger, high-reward targets.
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Self-Funding Strategy: The potential to develop modest-sized open pits could generate cash flow to fund further exploration, reducing the need for dilutive capital raisings.
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Exploration Success: The company continues to demonstrate exploration success with consistent high-grade gold results at multiple prospects.
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Infrastructure Advantage: All projects are located on granted mining leases with nearby processing facilities, significantly reducing potential development time and capital requirements.
With Hustler showing promising results and multiple other targets in the pipeline, Lunnon Metals is well-positioned to leverage its strategic position in the Kambalda gold and nickel district as it advances its gold-focused exploration strategy.
As Lunnon Metals' gold exploration in Kambalda continues to yield positive results, the company appears poised to potentially transition from explorer to producer, while maintaining an aggressive exploration programme aimed at making the next significant discovery in this historically productive region.
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