Labyrinth steps out of the maze with 500,000oz maiden gold resource
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Labyrinth Resources’ exploration effort has paid off with the definition of a maiden 500,000oz gold JORC resource at its namesake project, which is larger than the previous non-JORC estimate.
The Inferred Resource of 3 million tonnes at 5 grams per tonne (g/t) gold includes a higher grade component of 150,000oz at 10g/t and exceptional metallurgical test work results with an initial bulk leach extractable gold (BLEG) test returning 97.1% recovery – proving the free milling nature of the ore, which could reduce capital and operating costs of any future operations.
Importantly, the mineralisation remains open in all directions as highlighted by recent high-grade intersections such as 1.4m grading 13.32g/t gold in LABS 22-02 and 2.9m at 5.63g/t gold in LABS 22-04 that are outside the resource estimate.
Labyrinth Resources (ASX:LRL) also highlighted the key Boucher lode, which has 1Mt at 5.7g/t for 190,000oz of contained gold resources that remains open along strike and at depth.
Boucher consists of several parallel mineralised veins modelled over 1km of strike with veins exhibiting higher grades than the Main Lode structures.
“This is a very strong maiden Mineral Resource which lays the foundations for ongoing inventory growth,” chief executive officer Matt Nixon said.
“In addition to the Resource, drilling has established significant high-grade mineralisation which remains open at depth and along strike, paving the way for strong growth in the inventory.
“Drilling will now target this mineralisation to bring it into the Resource while also testing a host of regional targets.
“We are confident that given the additional mineralisation we have already identified and the fact that it is open in all directions, ongoing drilling will drive the Resource and create substantial shareholder value over coming months.”
While the sizeable resource at the previously producing Labyrinth project in Quebec, Canada, is undoubtedly encouraging, the company is not sitting on its laurels.
Planning is already underway for a new drill campaign to bring the known mineralisation, which its exploration has previously doubled the dimensions of, into the resource.
Labyrinth will also finalise regional drilling targets across the broad Labyrinth tenure, with specific focus on the strike extension of the highest-grade Boucher lode at the projected intersection point of the hosting Labyrinth Fault and the gold-mineralised Hunter Creek Fault.
Additionally, the company will carry out detailed interrogation of the resource model to define near-mine, high-grade opportunities around the existing five levels of the underground mine.
This article was developed in collaboration with Labyrinth Resources (ASX:LRL), 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.