Lunnon Metals found visible gold and a new mineralised structure in the third hole of its $13M FY2027 drill program at the St Ives camp. Assays are still pending for the rest of the shear zone.
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Lunnon Metals (ASX: LM8) identified a new mineralised zone at the Benmore target within its Foster-Baker gold project in Western Australia, part of the FY2027 exploration program. The assay for the prioritised zone returned 17.86 metres at 0.61 grams per tonne (g/t) gold. Grades varied across multiple breccia and vein structures, ranging from 0.03 g/t to 8.37 g/t over 0.36 metres and 7.26 g/t over 0.32 metres.
Visible gold was logged within the central zone at 302.25 metres downhole after the core was cut, though the assay for that interval came in at 0.92 g/t gold. The company said that suggests a potential nugget effect. Assays for the remainder of the shear zone and the drill hole are pending.
Foster-Baker sits in the middle of the St Ives gold camp, a district that has produced more than 18 million ounces of gold mined to date. The $13 million FY2027 program is the first part of a two-year effort to test Lunnon's previously reported exploration target. Benmore saw limited gold exploration historically because the area was the focus of nickel mining by WMC Resources between the 1970s and mid-1990s, and St Ives' gold processing plant and infrastructure sit adjacent.
"The FY2027 drill program is self-funded by the successful Lady Herial open pit, to the tune of $13 million, allowing us to explore our ground at St Ives, an area at the heart of one of Australia's great gold camps," Managing Director Edmund Ainscough said.
Ainscough said the first drilling at Benmore identified a new gold mineralised structure in an area where extensive surface infrastructure had hindered past exploration. "Benmore is still an early-stage conceptual target and further work is required to determine the orientation, extent and significance of the mineralisation intersected," he said. "These framework holes are not necessarily designed or expected to intersect gold mineralisation, which makes the identification of a new, gold mineralised structure in just the third hole drilled so much more satisfying."
LM8 traded at 30.0 cents before the open, with a market cap of $67 million. The stock has been flat over the past month.
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