Lunnon Metals (ASX:LM8) has announced the completion of a Scoping Study for its Lady Herial prospect in Western Australia, revealing promising financial outcomes for a short-life, high-grade gold open pit operation. The study projects a pre-tax cashflow of $44.7 million, fluctuating between $37.3 million (at $4,500/oz gold) and $52.1 million (at $5,000/oz gold), with an all-in sustaining cost of $2,100 per ounce. Open pit optimization indicates a range of 210,000 tonnes @ 2 g/t gold to 355,000 tonnes @ 1.8 g/t gold.
The mine design outlines a low-strip ratio pit (6.1:1) encompassing 300,000-320,000 tonnes @ 1.8 g/t gold, containing approximately 18,000 ounces of gold. The study is primarily based on measured and indicated mineral resources. Lunnon Metals, with a market capitalization of $45.22 million, holds a resource of 573,000 tonnes @ 1.6 g/t gold, totaling 29,000 ounces. Managing Director Edmund Ainscough emphasized the location’s importance, stating that the discovery efforts are refocusing to identify the next high-value gold deposit. Achieving the indicated outcomes requires funding between $5-10 million to initiate production. Lunnon Metals will be attending the Noosa Mining Investor Conference between July 23-25.
