Lefroy Exploration has achieved a significant milestone with the initiation of gold production at its Lucky Strike Mine in Western Australia. This development follows a decade of dedicated effort in exploration, resource estimation, and strategic partnerships. The company has successfully transported its initial shipment of gold doré bars for refining, marking a crucial step towards monetizing its substantial gold resources. This achievement underscores Lefroy's commitment to delivering value to its shareholders and advancing its mining operations within the region.
The successful launch of production at Lucky Strike is the culmination of extensive work, including securing essential mining and environmental approvals. With a robust mineral resource estimate and ongoing efforts to expand processing capabilities, Lefroy is poised to strengthen its position in the gold mining sector. The company's strategic collaboration with BML Ventures has been instrumental in facilitating the necessary funding and operational commencement, highlighting the importance of partnerships in achieving complex mining objectives.
Initial Gold Production and Strategic Operations
Lefroy Exploration has officially started gold production at the Lucky Strike Gold Mine, situated near Kalgoorlie in Western Australia. This marks a pivotal moment for the company, which has been diligently working on the project for the past ten years. The initial phase of production involved the successful shipment of the first three gold doré bars to the Perth Mint Refinery. These bars collectively weigh 27.2 kilograms, which translates to an estimated 584 ounces of gold, ready for final refining. This significant step demonstrates the project's transition from development to active resource extraction and value creation.
The current toll milling campaign for the Lucky Strike Gold Mine is being carried out at the FMR Greenfields plant in Coolgardie and is projected to conclude by the end of February. In anticipation of continuous operations, additional ore reserves have been strategically positioned at both the Lucky Strike site and the mill run of mine pads, ensuring a steady supply for future processing. To further enhance its operational capacity, Lefroy Exploration is actively engaged in negotiations with its profit-sharing partner, BML Ventures, to secure additional toll milling capacity for the project. Further details regarding these negotiations are expected to be released in the near future, indicating the company's proactive approach to optimizing its production pipeline.
Resource Estimates and Future Prospects
The Lucky Strike Gold Deposit boasts a substantial mineral resource estimate (MRE), totaling 1.27 million tonnes (mt) at an average grade of 1.95 grams per tonne (g/t) of gold. This impressive figure corresponds to approximately 79,600 ounces of gold. The MRE is further categorized into an indicated resource of 700,000 tonnes at 1.93 g/t, contributing 43,400 ounces, and an inferred resource of 570,000 tonnes at 1.97 g/t, accounting for 36,200 ounces. These estimates underscore the significant potential and economic viability of the Lucky Strike project, providing a solid foundation for sustained gold production.
Graeme Gribbin, CEO of Lefroy Exploration, emphasized the collective effort behind this achievement, stating that the production of the first gold doré bars represents the culmination of a decade of hard work by both past and present employees and management. He highlighted the journey from initial exploration efforts and the formulation of the first mineral resource estimate to recent collaborations with BML Ventures, which were instrumental in securing funding and commencing production. Mr. Gribbin also acknowledged the invaluable support from past and present shareholders and investors, whose financial contributions have made this milestone possible. He expressed confidence that the company is now on the verge of delivering substantial value to its current shareholders, not only from the Lucky Strike project but also by realizing the full potential of its broader one-million-ounce gold resource base across the Lefroy Project. This forward-looking statement reinforces the company's commitment to long-term growth and shareholder returns.