Laneway Resources uncovers more high-grade gold at Agate Creek
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Drilling at Laneway’s Agate Creek Gold Project in North Queensland continues to unlock high-grade mineralisation close to surface and firm up the scale potential of the project.
The latest results from Laneway Resources’ (ASX:LNY) drilling continue to confirm extensions of the previously mined veins as well as confirm previously identified deeper and almost parallel systems that also host narrow high-grade gold zones.
Top hits from a further 10 holes of the 49-hole, 2774m program at the Sherwood deposit featured 3m at 7.95 grams per tonne gold (g/t) from only 25m and 6m at 8.43g/t from 64m, including 1m at a much higher grade of 32.8g/t.
Notable intercepts from Sherwood West included 8m at 4.21g/t from just 5m and 2m at 9.69g/t from 28m.
This latest drilling program is the first phase of a multi-stage campaign following on from the completion of the Multi-Element Study that identified Kidston-style intrusion-related gold system (IRGS) potential at Agate creek.
This initial reverse circulation drilling program targeted along strike and deeper extensions to known high-grade mineralisation at the Sherwood and Sherwood West deposits.
The results will assist in updating planned open cut designs along with required waste rock characterisation sampling as part of Environmental Authority amendment applications.
Laneway expects the results still to come from other completed drill holes will demonstrate extensions to these zones. These results are expected over coming weeks.
“We are pleased to be continuing to get further high-grade drilling results with the first drilling program following up targets generated from the recently completed multi-element study,” managing director Brad Gordon said.
“As the drilling campaign continues, we look forward to confirming the IRGS hypothesis. for Agate Creek and our initial targets of along strike and deeper extensions of the known gold mineralisation.”
Agate Creek has shown strong similarities to IRGS systems like Kidston, which was once Australia’s largest open cut gold mine and located in the same pocket of North Queensland as Agate Creek.
It’s another boost for the company that last month completed the strategic purchase of the Georgetown Gold Project close to its 100% owned Agate Creek.
“These results will be incorporated into pit designs for near-term mining activities and with the recently announced acquisition of the Georgetown Gold Project, Laneway has a clear pathway to monetise the expanding high-grade mineral resource being outlined at Agate Creek,” Gordon said.
With a further $5.5m in capital raising initiatives likely to be completed in the current quarter, Laneway Resources is in a strong position to maximise its long-term regional growth potential.
Laneway is now undertaking a geotechnical diamond drilling program designed primarily to assess geotechnical constraints for pit designs but also targeting additional deeper Rhyolite zones at Sherwood.
This article was developed in collaboration with Laneway 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.