Lunnon Metals Ltd (ASX:LM8) Shallow depth high-grade gold results at Lady Herial

23 September 2024

Price Sensitive Announcement $

Highlights:

• Thick mineralised zone being defined – multiple gold intercepts
• Best result to date received: 18 metres @ 5.27 g/t Au from just 18m below surface
• Previous drill results re-reported at 0.5g/t cut-off support emerging opportunity

Overview:

Lunnon Metals Limited is pleased to update the progress of gold exploration at Foster hosted at its Kambalda Gold & Nickel Project (KGNP). The project has been renamed to reflect the dual commodity focus of the Company moving forward. In FY2024, the Company tested the first suite of high-ranking gold exploration targets . Lady Herial was selected based on significant, near surface, high-grade intercepts from the earlier drilling to receive a follow-up diamond drill (DD) and in-fill reverse circulation (RC) program. Assay results have now started to be returned. The following significant intercepts are reported above a 0.5 g/t Au cut-off unless otherwise stated.

RC Holes

• 18m @ 5.27g/t Au (FOS24RC_031 from 18.0m)
• 13m @ 0.96g/t Au (FOS24RC_030 from 22m)
• 7m @ 0.69g/t Au (FOS24RC_032 from 31m)
• 11m @ 0.89g/t Au (FOS24RC_033 from 28m)

DD hole – FOS24DD_011

• 22.50m @ 0.94g/t from 8.5m including (>1.0g/t Au cut-off):
• 2.50m @ 3.82g/t Au from 10.5m
• 3.49m @ 3.05g/t Au from 21.5m (further including 0.99m @ 6.86g/t where minor visible gold was recorded
• 1.00m @ 1.08g/t Au from 30.0m

Mineralisation was recorded where it was expected based on the preliminary geological model. Whilst better gold grades are often associated with broad zones of quartz veining, alteration and fine pyrite mineralisation (see Figure 1) there is no direct correlation on a sample by sample basis which, along with the recognition of fine visible gold, is indicative of the potential for a nugget effect to be present. Given the very shallow depths at which the gold mineralisation starts (i.e. from surface) and the widths of the mineralisation above a 0.5g/t cut-off recorded in the current program, relevant RC and DD holes previously reported4 at >1.0g/t “bulk-out” as follows (>0.5g/t Au):

• 5m @ 46.2g/t Au (CD3298 from 13m)
• 6.4m @ 6.96g/t Au (FOS24DD_010 from 10m)
• 21m @ 2.13g/t Au (FOS24RC_015 from 7m)
• 25m @ 2.76g/t Au (FOS24RC_018 from 10m
• 9m @ 0.59g/t Au (FOS24RC_019 from 0m surface)
• 8m @ 1.67g/t Au (CD10976 from 25m)

In summary, subject to the ongoing return of continued positive assay results from the rest of the program, Lady Herial is shaping up as an excellent opportunity to define a small-modest sized zone of gold mineralisation which will subsequently enable open pit optimisations to be conducted and potentially a Mineral Resource to be reported.

Company Comments:

Managing Director, Edmund Ainscough, commenting said: “The re-focus on gold at Foster continues to deliver exciting results. Recognising these near surface widths at good grade and also the presence of frequent visible free gold is especially encouraging for Lady Herial. As soon as all results are back our minds will turn to a possible Mineral Resource estimation and then open pit optimisation exercise. The team at Lunnon Metals has already shown it can drill, define, estimate and then optimise its discoveries rapidly, with the way the Baker nickel deposit was progressed from first drill hole to permitted Mining Proposal in a little over 2 years. This track record is made possible by the inherent positive aspects of our tenure at Kambalda, including abundant existing infrastructure, granted mining leases, minimal regulatory steps to permitting and low-modest start-up capital. Lady Herial might be the first cab off the rank for gold but the site team see many more opportunities in the short-medium term with the gold price at all-time highs in Australian dollar terms.”

Full ASX Announcement: 6A1226536.pdf (discoveryalert.com.au)