Labyrinth Resources upbeat as flagship project continues laying golden eggs

With 4,390m of drilling wrapped up, Labyrinth says the underground drilling program is approaching completion and a maiden resource is on track for the September quarter.

The maiden underground diamond drilling program consists of around 5,000m across 17 holes targeting the known resource to enable conversion of the NI43-101 Resource compiled in 2010 to JORC classification.

Assays are pending for 8 holes, with 6 expected to be received in the next two weeks and the final hole in the initial program underway – and since mid-February, around 16 holes have been completed for 4,389.5m.

Labyrinth Resources (ASX:LRL) says drilling continues to produce positive intersections of multiple modelled gold lodes, as well as indicating potential to immediately extend the strike of the McDowell, Talus, and Front West lodes.

Underground mine provides point of different to exploration focus

LRL CEO Matt Nixon says the company is extremely pleased with the progress at Labyrinth.

“We continue to intersect mineralisation across multiple historically modelled lodes through the first genuine exploration conducted in over ten years.

“The fact that we have a readily accessible underground mine provides a real point of difference to our exploration focus in regard to interpretation and comprehension of the mineralisation that has historically been mined across four levels down to 130m below surface,” Nixon says.

“The initial underground drilling program has delivered great results in support of establishing a significant maiden JORC resource later this year and we now immediately turn our attention to the commencement of a surface diamond drilling campaign.”

Surface diamond drilling

Preparations are well advanced for a surface diamond drilling campaign immediately following completion of the underground program.

The program will consist of around 3,000m across five holes covering more than 1km in strike of the Labyrinth gold deposit and will be targeting the extension of the known resource to the significant depth of around 700m below surface.

This article was developed in collaboration with Labyrinth Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.