Lefroy Exploration Gold Drilling Results Confirm Exceptional Burns Grades

Lefroy Exploration Confirms Exceptional High-Grade Gold Zones at Burns Deposit

Lefroy Exploration Limited (ASX: LEX) has delivered outstanding drilling results from its Burns Gold Deposit, with recent programmes confirming exceptional high-grade gold zones that validate the company's resource model. The Lefroy Exploration gold drilling results have strengthened its development pipeline through impressive intersections, including 30m @ 5.76 g/t Au and 20.87m @ 2.69 g/t Au, reinforcing Burns as a premium asset within the company's expanding gold portfolio.

Located in Western Australia's prolific Kambalda-Kalgoorlie gold district, the Burns Gold Deposit contains a substantial mineral resource estimate of 42.96 Mt @ 0.36 g/t Au for 497,472 ounces. Within this resource sits the Burns High-Grade zone, containing 4.22 Mt @ 1.18 g/t Au for 159,285 ounces – a concentration of high-grade material that positions Burns as a compelling development opportunity.

Outstanding Metallurgical Drilling Results Validate Resource Model

The recent metallurgical drilling programme has exceeded expectations, with Lefroy Exploration gold drilling results confirming both the continuity and grade characteristics of the Burns deposit. Furthermore, the diamond drilling component targeted the high-grade core specifically for metallurgical test work, successfully intersecting multiple zones of exceptional mineralisation.

Key Diamond Drilling Highlights from LEFD010

The 270-metre diamond hole delivered multiple significant intersections that validated the existing Burns resource model. Moreover, these results provide crucial validation for the company's geological interpretation of the deposit's structure and grade distribution.

The following intersections demonstrate exceptional grade continuity:

• 20.87m @ 2.69 g/t Au from 131.13m, including 3.87m @ 7.09 g/t Au
• 6.4m @ 2.59 g/t Au from 191m, including 0.93m @ 10.60 g/t Au
• 0.38m @ 15.3 g/t Au from 245m

However, the metallurgical reverse circulation drilling produced even more spectacular results. Hole LRR026 delivered outstanding intersections that exceeded management expectations:

• 30m @ 5.76 g/t Au from 24m, including 5m @ 17.3 g/t Au
• 7m @ 1.15 g/t Au from 71m, including 2m @ 2.9 g/t Au

"The significant near-surface gold assay results returned from the recently completed Diamond and RC metallurgical drilling programmes at Burns truly is a reminder of the exceptional nature of the high-grade core of the Burns Central deposit," said Graeme Gribbin, CEO.

In addition, these intersections provide crucial material for definitive metallurgical studies, with results expected by the end of January 2026.

Resource Extension Drilling Reveals Strike Potential

The exploration programme targeting potential resource extensions has identified additional mineralisation zones to the north of the existing Burns resource. Although these Lefroy Exploration gold drilling results are more modest than the core deposit intersections, they demonstrate the system's continuity and growth potential.

These results confirm that the mineralisation system extends beyond the current resource boundaries. Consequently, this presents opportunities for future resource growth through systematic exploration programmes.

Understanding Porphyry-Style Gold Deposits

Burns represents a porphyry-style gold-copper system, a deposit type characterised by large tonnages of mineralisation hosted within intrusive rocks. Unlike narrow vein systems, porphyry deposits typically contain broad zones of lower-grade mineralisation punctuated by higher-grade cores.

Geological Setting at Burns

The Burns deposit showcases several key features typical of porphyry systems. Furthermore, these characteristics make it particularly attractive for large-scale mining operations:

• Host Rocks: Mineralisation occurs within high-magnesium basalt and intermediate composition igneous rocks that intruded the basalt
• Multiple Mineralisation Phases: Gold appears associated with at least three distinct phases of veining, distinguishable by their cross-cutting relationships
• Alteration Zones: The deposit features extensive potassic alteration affecting both basalt and diorite host rocks
• Supergene Enrichment: Weathering processes have concentrated metals in the upper portions of the deposit

This geological setting is particularly attractive for mining operations as it can provide consistent, bulk-mineable resources with predictable processing characteristics. In addition, the presence of supergene enrichment zones offers potential for lower-cost initial mining phases.

Strategic Development Pathway Takes Shape

The timing of these exceptional Lefroy Exploration gold drilling results aligns perfectly with the company's broader development strategy. With the Lucky Strike Gold Mine already in production following the commencement of mining in December 2025, Burns represents Lefroy's second major development opportunity.

The pending metallurgical results will prove crucial in determining the optimal processing pathway for Burns material. Moreover, the company's approach of profit-share mining agreements has already demonstrated success at Lucky Strike, where operations began following agreements with BML Ventures.

This model could potentially be replicated at Burns, providing a capital-efficient pathway to production that minimises dilution to shareholders. However, the success of this approach depends on securing suitable mining partners with the necessary expertise and equipment.

Burns Deposit Resource Summary

The Burns deposit contains a substantial resource base with significant high-grade components. Furthermore, the resource distribution demonstrates excellent potential for selective mining approaches:

The high-grade zone represents approximately 32% of the total contained ounces while comprising only 10% of the total tonnage. This highlights the significant grade enhancement potential within the broader resource.

Future Exploration and Development Timeline

With metallurgical results expected by late January 2026, Lefroy is well-positioned to advance development planning for Burns. The company has secured funding through the Exploration Incentive Scheme (EIS) to conduct additional diamond drilling targeting multiple magnetic anomalies around the broader Burns intrusive system during 2026.

The exploration upside at Burns extends well beyond the current drilling programme. Historical intercepts to the south, including 29.1m @ 2.64 g/t Au and 6.9m @ 2.71 g/t Au, indicate significant potential for resource expansion along strike and down-plunge.

Multiple Value Catalysts Ahead

Several near-term catalysts position Lefroy for continued value creation. These milestones provide investors with clear visibility on the company's development trajectory:

• Immediate: Metallurgical test results by January 2026
• Near-term: EIS-funded diamond drilling programme throughout 2026
• Ongoing: Production optimisation at Lucky Strike
• Medium-term: Resource extension drilling along strike and down-plunge at Burns

Why Should Investors Monitor Lefroy Exploration?

Lefroy Exploration has positioned itself as an emerging gold producer in one of Australia's premier gold districts. The company maintains a clear pathway from exploration through to production, supported by several strategic advantages.

Proven Development Execution

The successful transition of Lucky Strike from resource to production demonstrates management's ability to deliver on development commitments. Mining commenced in December 2025, validating the profit-share model and providing immediate cash flow generation.

High-Quality Asset Portfolio

With over one million ounces in total resources across multiple deposits, Lefroy maintains a robust pipeline of development opportunities beyond Burns. This diversified resource base provides multiple pathways for growth and production expansion.

Capital-Efficient Growth Model

The profit-share mining agreement model minimises capital requirements while maintaining exposure to production upside. Consequently, this reduces traditional mining development risks whilst preserving shareholder value through reduced dilution.

Strategic Location Benefits

All assets are located within proven gold districts with established infrastructure and mining services. This reduces operational risks and development costs compared to greenfield developments in remote locations.

Furthermore, the proximity to existing mining operations provides access to skilled labour and established supply chains.

Investment Risk Considerations

While the recent drilling results are encouraging, investors should consider several factors before making investment decisions. These considerations are typical of junior mining companies transitioning from exploration to production.

Metallurgical test results remain pending and will influence processing pathway decisions. In addition, resource extension drilling represents early-stage exploration with inherent geological risks that could impact future resource estimates.

Commodity price volatility affects project economics and development timelines, whilst regulatory approvals remain subject to standard mining development processes. However, Lefroy's location in Western Australia provides a stable regulatory environment compared to many international jurisdictions.

Key Investment Takeaway

Lefroy Exploration has demonstrated exceptional execution in transitioning from explorer to producer, with Lucky Strike now in operation and Burns positioned as the next high-grade development opportunity. The outstanding Lefroy Exploration gold drilling results confirm Burns' potential as a second production centre, while the company's capital-efficient development model provides investors with leveraged exposure to gold production growth.

The combination of immediate cash flow from Lucky Strike, the development potential at Burns validated by recent drilling, and the broader exploration upside positions LEX as a compelling growth story. With metallurgical results pending and systematic exploration continuing to unlock value, investors should closely monitor Lefroy's progress as it builds toward becoming a significant regional gold producer.

For instance, the company's strategic approach of securing production from Lucky Strike whilst advancing Burns development demonstrates prudent risk management and capital allocation. This dual-track strategy provides both immediate cash generation and medium-term growth opportunities within Australia's premier gold mining region.

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