Lunnon Metals Hits 16m at 9.14 g/t Gold, Edging Lady Herial Cut-Back Closer
Key Takeaways
- Lunnon's 25-hole RC program at Lady Herial returned 16m @ 9.14 g/t Au from 44m, with further 10m @ 4.45 g/t Au and 14m @ 2.87 g/t Au intercepts, mostly in the Northwest Prospect.
- Upper Structure mineralisation continues from the base of the completed pit into the cut-back target, and the Northwest Prospect could materially reduce the strip ratio.
- The Lady Herial resource sits at 589,600t @ 2.0 g/t Au for 37,000oz, with infill drilling aimed at lifting classification toward Indicated and Measured.
- The Hustler resource update is due late October or early November, the LDH2 resource update in late November, and the Scoping Study in early-to-mid December 2026.
- No Final Investment Decision has been made, and any cut-back depends on the A$ gold price, overburden removal costs and resource confidence.
Thick high-grade gold intercepts de-risk Lady Herial cut-back
Lunnon Metals has returned thick, high-grade results from 25 reverse circulation (RC) holes at Lady Herial, which the company says confirm consistent mineralisation across the northwest extensions. The Lady Herial gold results further de-risk the potential cut-back (LDH2), according to the 09 October 2026 update.
Three intercepts stand out: 16m @ 9.14 g/t Au (LDH26RC485 from 44m), 10m @ 4.45 g/t Au (LDH26RC460 from 55m) and 14m @ 2.87 g/t Au (LDH26RC_487 from 39m). Grams per tonne (g/t) measures how much gold sits in each tonne of rock, so higher numbers over wider intervals matter most.
Upper Structure mineralisation continues from the base of the completed open pit into the cut-back target area. The Northwest Prospect (NWP) could materially reduce the strip ratio and improve cut-back economics. The strip ratio is the amount of waste rock moved to reach each tonne of ore.
Grade and confidence in the Mineral Resource estimate is the main driver of any cut-back decision. That is why drilling that tightens the data is more important than any single headline number.
The table below shows eight highlight intercepts, reported above a 0.5 g/t Au cut-off. Drill widths approximate true widths.
| Hole ID | From (m) | Width (m) | Grade (g/t Au) | Structure |
|---|---|---|---|---|
| LDH26RC_460 | **55.0** | **10.0** | **4.45** | NWP |
| LDH26RC_485 | **44.0** | **16.0** | **9.14** | NWP |
| LDH26RC_487 | **39.0** | **14.0** | **2.87** | NWP |
| LDH26RC_488 | **37.0** | **14.0** | **2.14** | NWP |
| LDH26RC_494 | **29.0** | **18.0** | **2.02** | NWP |
| LDH26RC_502 | **76.0** | **14.0** | **2.48** | LDH Upper |
| LDH26RC_503 | **76.0** | **8.0** | **3.52** | LDH Upper |
| LDH26RC_496 | **39.0** | **15.0** | **1.75** | NWP |
Managing Director Edmund Ainscough said the potential for a cut-back rests on three parameters.
Edmund Ainscough, Managing Director
“Any potential for a cut-back at Lady Herial relies on three key parameters, the future A$ gold price assumed to prevail at the time of planned mining, the cost to remove the overburden to get to the inevitably deeper gold mineralisation and lastly, but most importantly, the grade of, and confidence in, the Mineral Resource estimate…”
He added that the first stage of mining set a template.
“The first stage of Lady Herial mining was a success primarily because we did such a thorough job of defining the geology and gold mineralisation, and hence de-risking the project to the greatest extent possible. The success of that approach naturally sets the template we look to follow moving forward.”
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What infill drilling means for resource confidence
Why drill spacing matters
The program aimed to reduce drill spacing on known mineralisation, inside the existing Mineral Resource, to better than approximately 20m x 10m. Closer holes give a clearer picture of where the gold sits and how the grade varies.
If successful, that improves geological and grade estimation confidence. It could lift mineralisation from Inferred to Indicated, and potentially Indicated to Measured.
This matters because a Mineral Resource is the starting point for any mining decision. Per the company, subject to a positive technical assessment (a Scoping or higher level of Study) and cost and gold price variables, an updated Mineral Resource estimate may form the basis for development studies that could lead to a future Probable Ore Reserve, drawn from portions at the Indicated (or higher) classification.
Current resource and mining context
The numbers that frame the Lady Herial story:
- Lady Herial Mineral Resource subtotal: 589,600t @ 2.0 g/t Au for 37,000oz (above 0.5 g/t Au cut-off, depleted by mining to 8 August 2026)
- Group total: 1,415,600t @ 1.6 g/t Au for 73,200oz
- First-stage mining: approximately 300kt @ 1.68 g/t Au, with 14,910oz sold to Gold Fields for treatment at its Lefroy Gold Processing plant
- Metallurgical recovery: set at 91.0% under the Ore Purchase Agreement (OPA), against test work of 91.4% (12-hour residence) and 94.6% (24-hour residence)
The test work recoveries sit above the agreed OPA figure, which tells you the contractual assumption was set below what testing delivered.
Timeline to Mineral Resource update and Scoping Study
A ten-hole diamond drilling (DD) program is current and due to end shortly. Five holes have a dual objective: collecting core for metallurgical testwork to confirm amenability to the St Ives Gold Mining Co. Pty Ltd (SIGM) Lefroy Gold plant flowsheet, a requirement of SIGM to feed into any OPA discussions, while also providing structural and geological data. Three holes are to confirm geotechnical parameters for open pit design.
As reported on 15 September 2026, the Scoping Study assessing a cut-back at Lady Herial and an initial open pit at Hustler is largely complete. Its finalisation was rescheduled until both Mineral Resource models are updated and both open pit optimisations re-run, so the study is built on the latest data.
Mine operating and processing/haulage costs are already well established given the recent successful OPA with SIGM. Geotechnical assessment of the current DD holes will inform final pit wall angle inputs.
The reporting timeline is:
- Results of follow up RC holes targeting a footwall opportunity at Hustler: late October 2026
- Hustler Mineral Resource estimate update: late October/early November 2026
- LDH2 DD holes completed and key assay results expected: mid November 2026
- LDH2 Mineral Resource estimate update: late November 2026
- Finalise Scoping Study analysis: early December 2026
- Report Scoping Study: early-mid December 2026
Regulatory permitting activities will proceed in parallel, unaffected by this timeline.
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Investment significance and wider program
Foster-Baker sits in the middle of the St Ives gold camp, a district that has produced over 18Moz of gold since modern production commenced in the early 1980s. All gold prospects being tested are 100% owned by Lunnon Metals, while Gold Fields, through SIGM, is the company’s major shareholder.
The $13 million, 43,000 metre FY2027 drill program balances early-stage conceptual targets in underexplored areas with definition work on more advanced near surface deposits, such as Lady Herial.
The FY2027 drill program was designed to weigh early-stage targets in underexplored ground against definition drilling at advanced near surface deposits, which explains why Lady Herial infill holes and greenfield tests are running side by side.
Not every target delivered. A further 11 RC holes at Agnes and Thelma North returned only occasional, narrow mineralisation at Thelma and no significant intercepts at Agnes. Both are now a lower priority and will not be tested further during the FY2027 campaign, which suggests drilling funds are being directed towards better-performing areas.
The next catalysts are the Hustler results, the Mineral Resource estimate updates and the Scoping Study. Any development path remains subject to studies, gold price and costs, and a Board decision to approve any Final Investment Decision. No such decision has been made.
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