Labyrinth’s high-grade gold hits back resource conversion plans
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Labyrinth’s strategy to convert the existing foreign resource at its namesake project to JORC standards has received a leg-up with drilling returning some impressive high-grade golds.
Notably, the assays such as 7.5m grading 7.01 grams per tonne (g/t) gold from 213m including 0.5m at 62.51g/t gold consistently confirm or exceed historical mineralised intervals that were used for the 2010 NI43-101 estimate of 479,000oz of contained gold.
Drilling also intersected the Talus lode with results such as 3.7m at 4.75g/t gold from 23m exceeding historical lode widths.
The results follow on Labyrinth Resources’ (ASX:LRL) recent observation of visible gold at the known Talus and Boucher lode outside the existing resource envelope and is a strong indicator that the initial JORC resource for the Labyrinth gold project will make a splash.
“These assays are an outstanding start to our maiden drilling program. They are entirely consistent with our strategy to convert the existing 479,000oz foreign resource to a JORC estimate this year,” chief executive officer Matt Nixon said.
“Importantly, the results support our view that the orebody hosts significantly wider mineralisation around the high-grade discrete veins, which in turn highlights the potential for more gold than previously estimated.
“These consistent widths exist 200 – 400m below surface, which is common in Abitibi deposits that often only open up in width and grade below the 300 – 500m horizon, with the Labyrinth Gold Project remaining open at depth and along strike.”
The maiden underground drill program consisted of 20 holes totalling about 5,000m that targeted the known resource mineralisation over a strike of 400m and to a depth of 400m below surface.
Of these, 15 holes were focused on the highly prospective Boucher lode, to enable conversion of the NI43-101 resource.
To date, results have been received for the first seven holes, which confirm the presence of the Boucher lode associated with the Labyrinthe Fault while supporting the grade distribution indicated by historical data.
The company has engaged SGS Canada to conduct necessary metallurgical testwork in the coming weeks as part of its goal of delivering a maiden JORC resource this year.
A drill rig relocation is also planned to test the McDowell lode and the mine sequence of the existing historical underground development.
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.