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Laneway unlocks game changing Kidston-style large-scale gold potential at Agate Creek
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Laneway Resources has made a significant discovery at its Agate Creek project that could be game changing and signify the start of a new chapter for the junior gold explorer.
A recent study undertaken by the Laneway Resources (ASX:LNY) has highlighted strong potential for a Kidston-style intrusion-related gold system (IRGS).
The former producing Kidston mine in northern Queensland was once Australia’s largest open cut gold mine, averaging production of 200,000-300,000oz of gold each year.
The massive open pit – which produced gold on and off for over four-and-a-half decades – is now being utilised to hold water for energy storage, establishing it as the country’s third largest hydroelectric energy storage project.
Meanwhile, a 12-month multi-element study undertaken by Laneway at the Agate Creek project – with input from some of the best independent geological experts in the country –has now shown strong similarities to the IRGS systems that host major gold mines like Kidston.
CEO Brad Gordon said what had historically been considered an epithermal deposit at the Sherwood deposit was now looking increasingly like an IRGS system.
“I have known the experts we brought in, Greg Morrison and Scott Halley, for years and when they get excited, I sit up and listen. Without exaggeration it has transformed our understanding of the geology at Agate Creek and the scale potential of our ground in the region,” he said.
“Such deposits are generally recognised to offer larger scale potential and are characterised by multi-million-ounce endowments. Whilst we already have a JORC resource of close to half a million ounces at Agate Creek, we might just be on the cusp of something much larger.”
One of the largest IRGS deposits – which occur in specific tectonic belts around the world – is the undeveloped Donlin Creek deposit in the prolific Tintina Gold Belt in Alaska, which hosts +30Moz of gold.
Northeast Queensland is also host to several large IRGS deposits, including Kidston which is located about 60km east of Laneway’s Agate Creek project. At the recent Noosa Mining Conference Gordon noted that there was no geological reason why north Queensland should not be as prospective as any of the other well-known gold provinces in Australia.
Agate Creek hosts the fourth largest mineral endowment in the Georgetown region behind Kidston (5Moz), Woolgar Mesozonal (1.1Moz) and Woolgar Epithermal (0.7Moz).
The study also provided evidence of a larger gold target down plunge of Agate Creek, deeper than current drilling, while a separate review of regional gravity and magnetics data has identified a potential source for the gold mineralisation about 4.7km south of Agate Creek.
The extensive multi-element study analysed over 47,000 samples from drill cores collected in the vicinity of the Agate Creek project since 1993. It also involved two parallel investigations that both concluded the project had indicators with similarities to an IRGS deposit.
“In our opinion we are likely at the beginning of a new chapter in the history of Laneway Resources with a new geological model underpinning our thinking,” Gordon said.
“Whilst we have other assets in our portfolio, Laneway is firmly focused on gold production.
“However, the study has yielded a wealth of drill targets to confirm the IRGS hypothesis which we intend to follow up straight away, starting with ‘along strike’ and deeper extensions to the known Sherwood high-grade mineralisation in the rhyolites.”
Planning is now well advanced for a multi-stage program that will include a significant drill campaign at the Sherwood and Sherwood West deposits and drilling to test deeper high-grade gold targets below Sherwood.
“Drilling will continue into 2022, with the large gravity low southeast of Agate Creek a particularly tantalising prospect,” Gordon said.
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.
