Grade control drilling, early production and processing results at Lefroy Exploration Ltd (ASX:LEX)'s Lucky Strike gold mine near Kalgoorlie are supporting both its resource model and the potential for further growth.
Recent shallow drilling targeting a proposed South Pit returned multiple strong intercepts, including 16 metres at 3.39 grams per ton (g/t) gold from 127m, 11m at 2.92g/t from 41m and 11m at 2.85g/t from 49m, with high-grade sub-intervals exceeding 10g/t gold.
Importantly, the drilling broadly confirmed the existing mineral resource model while also validating Lefroy’s geological interpretation of the southern portion of the deposit. The current Lucky Strike resource stands at 1.27Mt at 1.95g/t gold for 79,600 ounces.
Grade Control Drilling and significant assay results targeting the proposed South Pit at Lucky Strike.
Beyond confirmation, several intersections were recorded outside the existing resource wireframe, including hits such as 3m at 7.18g/t gold and 2m at 8.42g/t gold from shallow depths. These results point to potential extensions both along strike and down plunge, as well as the possibility of parallel lodes.
“We are encouraged that first gold has been produced from the Lucky Strike Gold Mine, with a total of 1392 ounces of gold recovered from our first toll milling parcel in February," Lefroy MD Graeme Gribbin said.
“We are especially pleased that the mine resource grade and mine claim grades strongly reconcile with the mill, which is a strong endorsement not only of the Company’s mineral resource estimate but of the grade control practices undertaken by BML.
“With ore stockpiles growing on site in support of subsequent toll milling parcels, and with the company securing an additional $0.5 million in funding from our profit cash advance facility agreement with BML, we are well placed to recover more gold ounces from Lucky Strike, and grow our cash balance through future profit share distributions at Lucky Strike, and through our ongoing exploration and resource expansion activities, particularly at Mt Martin and Burns.”
Production and reconciliation support model
At the same time, Lefroy has completed its first toll milling campaign, processing 31,796 dry tonnes at a reconciled head grade of 1.42g/t gold for 1,392 recovered ounces, achieving a recovery rate of 96.2%.
Lucky Strike February 2026 Ore Production Statistics.
The company highlighted that both the mine-to-mill and resource-to-mine grade reconciliation were strong, providing confidence in the underlying resource estimate and grade control practices.
Mining continues to advance under its profit share arrangement with BML Ventures, with more than 13,000 tonnes of ore now stockpiled for future processing and ongoing waste stripping opening access to higher-grade zones.
Lefroy is also progressing discussions to secure additional toll milling capacity for up to 250,000 tonnes of ore, supporting continued production growth.
On funding, the company has strengthened its position with a further $0.5 million drawdown from its $2.5 million profit-linked cash advance facility with BML, which is being used to support ongoing mining and operational activities.
Looking ahead, further drilling is planned to support mine development and test extensions to mineralisation, as Lefroy looks to grow the resource base and generate ongoing cash flow from Lucky Strike.