Laneway Resources (ASX:LNY) has firmed up the potential to undertake a small cut back on the current open cut pit area at the Sherwood deposit within its Agate Creek project in north Queensland to mine high-grade mineralisation.

This comes after initial assays from a 42-hole drilling program returned results such as 5m at 22.3 grams per tonne (g/t) gold, 2m at 53g/t gold and 7m at 13.9g/t gold.

Results of more than 5g/t are generally considered to be high-grade.

Further results from holes targeting the Sherwood potential additional high-grade material, the Sherwood West prospect and five regional targets are still pending.

Laneway plans to incorporate these drilling results to update its JORC resource, which currently stands at 8.2 million tonnes grading 1.46g/t for 381,000 ounces of contained gold.

This will allow the company to carry out a full analysis into the potential for additional high-grade mining at Sherwood, which will allow for detailed pit designs.

In its September quarterly, Laneway said it had received revenue of almost $10.6m from the sale of 5,242 ounces of gold since production at its Agate Creek project began in April.

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In other ASX gold news today:

Carnaby Resources (ASX:CNB) continues to intersect high-grade gold below the historical Tick Hill open pit in Queensland with results of up to 3m at 9.78gt/ gold from a depth of 80m, including 1m at 25.7g/t gold from 81m. Resource modelling is underway and the company expects to complete an estimated resource in the near term. Tick Hill was mined to only 70m depth, producing 180,000 ounces gold at a grade of 18.1g/t.


De Grey Mining (ASX:DEG) has kicked off a drilling campaign to test for shallow resource extensions at the Mallina deposit within its Pilbara gold project in Western Australia. About 10,000m of the 15,000m program is expected to be completed during December.

At Stockhead, we tell it like it is. While De Grey Mining is a Stockhead advertiser, it did not sponsor this article.