Lunnon Metals Unveils Promising Gold Intercepts at Lady Herial Prospect
LM8 (LM8) Share Update September 2024 Monday 30th
Lunnon Metals Announces Significant High-Grade Gold Intercepts at Lady Herial
Lunnon Metals Limited (ASX: LM8) has announced a series of significant high-grade gold intercepts from its ongoing exploration at the Lady Herial prospect, part of the Kambalda Gold & Nickel Project (KGNP). The results highlight the potential for substantial near-surface gold mineralization, reinforcing the prospect's importance in the company's strategic objectives.
Instant Summary:
- New gold zone identified at surface with multiple gold intercepts on parallel shoots.
- Best result: 23 meters at 16.61g/t Au from surface, including 6 meters at 62.47g/t Au.
- Lady Herial remains open down plunge, indicating further exploration potential.
Exploration Details
Lunnon Metals' recent drilling at the Lady Herial prospect has yielded some of the most promising results to date. The standout intercept of 23 meters at 16.61g/t Au from surface, including 6 meters at 62.47g/t Au, marks the highest-grade gold intercept recorded by the company.
Other significant intercepts include 13 meters at 4.10g/t Au from 3 meters, 16 meters at 1.15g/t Au from 1 meter, and 7 meters at 2.58g/t Au from surface. These results were obtained from the current diamond drill (DD) and in-fill reverse circulation (RC) program, which continues to expand the known mineralization at Lady Herial.
Geological Context
The Lady Herial prospect features two thick, parallel mineralized structures spaced approximately 50-60 meters apart, both dipping northwest at 30 degrees. The geological model is being dynamically updated as new assays are received, with recent results indicating the presence of very high-grade gold zones outside these structures.
The shallow nature of the gold mineralization, starting from the surface, combined with the widths recorded, positions Lady Herial as a priority prospect for Lunnon Metals. The company aims to define shallow, high-grade mineralization capable of rapid drilling, modeling, and potential commercialization.
Strategic Implications
Upon receipt of the remaining assays, Lunnon Metals plans to complete geological modeling and undertake open pit optimizations to determine the feasibility of reporting an initial Mineral Resource. The company highlights that all gold prospects being tested and evaluated are 100% owned by Lunnon Metals and located on granted mining tenements with significant existing infrastructure.
Lady Herial has the potential to be Lunnon Metals' second significant discovery, following the high-grade, near-surface Baker nickel discovery in 2022. The extensive local geological and operating knowledge within the management team maximizes the chances of making discoveries that can be brought to production quickly with modest capital investment.
The announcement of high-grade gold intercepts at Lady Herial is likely to positively impact Lunnon Metals' stock price. The potential for substantial near-surface gold mineralization could attract investor interest and enhance the company's valuation. The strategic focus on rapidly drilling, modeling, and potentially commercializing these discoveries aligns with Lunnon Metals' goal of leveraging existing processing capacity in the region.
Investor Reaction:
Analysts are likely to react positively to the high-grade gold intercepts reported by Lunnon Metals. The shallow nature of the mineralization and the potential for rapid commercialization are key factors that could drive investor interest. However, the final impact on the stock price will depend on the results of the remaining assays and the subsequent geological modeling and open pit optimizations.
Conclusion:
Investors should closely monitor the progress of Lunnon Metals' exploration at Lady Herial. The significant high-grade gold intercepts reported so far indicate substantial potential for near-surface gold mineralization. As the company moves forward with geological modeling and open pit optimizations, the prospect's commercial viability will become clearer. Investors are encouraged to stay informed about further developments and consider the potential long-term benefits of Lunnon Metals' strategic exploration efforts.