Lady Herial Gets the Go-Ahead

• Lady Herial Feasibility Study reported robust economics
• Operating free cash flow (pre-tax) of $40.4M to $47.9M
• Board has approved the Final Investment Decision
• Preferred contractors selected and contracts being finalized

Lunnon Metals Limited (ASX: LM8) has announced that following the completion of the Lady Herial Feasibility Study and the confirmation of the Ore Purchase Agreement (OPA) with major shareholder St Ives Gold Mining Co. Pty Ltd (SIGM), the Board of Directors has approved the Final Investment Decision. This allows mining contracts to be executed and mining to commence. The Feasibility Study detailed robust economics for a short-life, high grade, low strip ratio open pit, to be mined and processed within 8-10 months. Operating free cash flow (pre-tax) is recorded as $40.4M (@ $6,250/oz), $42.9M (@ $6,500/oz) or $47.9M (@ $7,000/oz; spot gold sits at ~$6,900/oz). The preferred contractors are Hampton Civil and Mining for mining, and Goldfields Technical Services of Kalgoorlie for statutory positions, operational blast design, dig plans, mine geology, surveying and general site/Run of Mine pad management. Final contracts are being prepared and are expected to be executed in the short term, after which mining can commence. Lunnon Metals is confident that Lady Herial's mine plan can be delivered safely, efficiently and extremely profitably at the current A$ gold prices, to the benefit of all key stakeholders.

Operating free cash flow (pre-tax) of $40.4M (@ $6,250/oz), $42.9M (@ $6,500/oz) or $47.9M (@ $7,000/oz) for the Lady Herial project.