WA Junior Miner Locks In Processing for Gold Output
Lefroy Exploration has taken a significant step forward in its path to production, finalising a toll milling agreement with BML Ventures for its Lucky Strike gold project in Western Australia. The deal will see up to 250,000 tonnes of ore processed over a two-year period, marking a clear shift from exploration to commercial production.
This agreement, announced this week, represents a defining moment in Lefroy’s transition and places the company on track to contribute to WA’s booming gold sector through an innovative low-capex development model.
Lefroy’s Lucky Strike project site gearing up for ore delivery under the new toll milling deal.
Source: TipRanks
Inside Lefroy’s Toll Milling Deal: What It Means for Lucky Strike
Under the terms of the new Lefroy Lucky Strike Toll Milling Agreement, BML Ventures will serve as Lefroy’s mining contractor and processing partner, handling extraction and ore delivery to a third-party facility. Milling will occur in stages, beginning with Stage 1 ore targets extracted from the Lucky Strike deposit within the broader Lefroy Gold Project, located southeast of Kalgoorlie.
The initial phase includes 250,000 tonnes of ore, with the first parcels scheduled for delivery and processing between Q4 2025 and Q2 2026.
“This toll milling arrangement secures a clear path to monetising our gold resources while avoiding major capital outlay,” said Lefroy Managing Director Wade Johnson. “It’s a strategic milestone that accelerates value for shareholders and positions us for sustainable production.”
Strategic Move in a High-Cost Market
In a climate where exploration companies are facing capital constraints and rising project development costs, Lefroy’s decision to adopt a toll treatment model underscores a growing trend in the junior mining space—partnership over infrastructure.
By collaborating with BML Ventures, Lefroy sidesteps the need for an expensive processing plant while gaining access to experienced mining and logistics support. The arrangement also helps de-risk early production, allowing the company to assess the resource’s economic performance ahead of long-term investment.
BML Ventures trucks and equipment to begin mobilisation at the Lucky Strike site in late 2025.
Source: Power & Motion
Production Timeline and Stage 1 Target Zones
The Lefroy gold production 2025 plan is focused on a high-grade portion of the Lucky Strike system, which has previously returned strong assay results from both RC and diamond drilling. Lefroy has outlined Stage 1 production targets that are logistically near existing haul roads and align with BML’s existing trucking routes to established mills.
Ore delivery will commence late 2025, with full processing expected to be completed by mid-2026, depending on milling availability and seasonal conditions.
Early forecasts suggest a healthy grade profile, with current inferred resources supporting a profitable processing window under prevailing gold prices.
Growing Confidence in WA Gold Mining
The Lefroy mining milestone arrives amid continued strength in WA’s gold industry, buoyed by strong spot prices and renewed investor interest in near-term producers. Several junior explorers have pivoted to production this year, using toll treatment and mining partnerships as efficient strategies to extract value from existing deposits.
“Toll milling continues to provide a vital bridge for companies like Lefroy to transition from explorer to producer,” noted a Perth-based analyst at Canaccord Genuity. “It keeps the team lean, reduces risk, and delivers early cash flow.”
WA’s gold corridor near Kalgoorlie continues to attract small-scale developers like Lefroy.
Credit: Lefroy Exploration
What This Means for Investors
The successful execution of this toll milling deal not only de-risks Lefroy’s gold production ambitions but may also re-rate the company in the eyes of institutional investors and analysts. As drilling continues on other tenements within the Lefroy Gold Project, the company is building momentum with a multi-asset, staged production model.
The BML Ventures partnership also allows operational flexibility, with potential for expanded ore supply or extension of the milling schedule should the initial campaign deliver solid returns.
Conclusion: A Lucky Strike Turns Strategic
With the Lefroy Lucky Strike Toll Milling Agreement now locked in, the company is no longer just exploring—it’s executing. By partnering with a proven mining contractor and leveraging existing milling infrastructure, Lefroy has carved out a clear path to gold production without the burden of full-scale plant construction.
In a resource-rich but capital-sensitive sector, it’s the kind of smart, nimble approach that’s redefining how junior miners scale.
