Lunnon Metals (ASX:LM8) Completes Robust Scoping Study for Lady Herial Deposit
Scoping Study Results
Lunnon Metals Limited (ASX: LM8) has successfully completed a Scoping Study for its Lady Herial gold deposit, achieving a +/-30% accuracy level. The study confirms the potential for a short-lived, high-grade open pit mine based on 89% Measured and 10% Indicated Resource categories. Open pit optimisation and mine design have been finalised, laying a strong foundation for commercial negotiations with Gold Fields Ltd. Additionally, the regulatory approval process is well advanced, positioning the company to move forward promptly.
Financial Performance
The Scoping Study projects pre-tax free cash flow of approximately A$44.7 million, assuming a gold price of A$5,000 per ounce. Financial outcomes range between A$37.3 million at A$4,500/oz and A$52.1 million at A$5,500/oz. The study also estimates an All-in-Cost of around A$2,100 per ounce of gold produced, underscoring the economic viability of the project.
Executive Comments
Managing Director Edmund Ainscough stated, “I am delighted with the robust results of this Scoping Study, both the physical and financial outcomes… It might be modest in size, but with the indicative financial outcomes that the Study has forecast, it certainly punches above its weight… [The Lunnon Metals team] are well placed to deliver the mining proposal submission to the Western Australian government and engage with Gold Fields to secure a value-adding commercial agreement.”
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.
