Lunnon Metals (ASX:LM8) increased its mineral resource estimate at its Kambalda gold & nickel project's Lady Herial gold deposit in Western Australia to 560,000 tonnes at 2 grams per tonne grade of gold for 36,300 ounces, according to a Tuesday Australian bourse filing.
Pit optimisations followed by detailed studies show that the deposit has "robust" economics, the filing said.
Regulatory approvals to mine at the deposit are expected in the near future, the filing added.
Shares of the company rose 3% in recent Tuesday trade.