Lefroy’s maiden Lucky Strike gold resource is the foundation for further growth
Special Report: Lefroy has pencilled in a tidy maiden resource of 79,600 ounces of gold at its Lucky Strike project that remains open along strike and at depth.
The estimate for the greenfields discovery increases the total resource inventory at the broader Lefroy gold project near Kalgoorlie fivefold to 99,200 ounces of gold.
Lefroy Exploration (ASX:LEX) says that more than half of the Lucky Strike resource is in the higher confidence indicated category, which offers enough grade and geological certainty for mine planning, and that 84 per cent of the resource is contained within near surface oxide material.
Further growth looks likely as the resource of 1.27 million tonnes grading 1.95 grams per tonne gold is not only open along strike and at depth, it is also part of a corridor of gold mineralisation that is defined by aircore drilling over a further 2km to the southeast.
Lucky Strike is also well placed for early development given that it is located within a granted mining lease with applications already underway for haul roads to potential milling sites.
Lucky Strike is just 5km southwest of Silver Lake Resources’ (ASX:SLR) Randalls processing plant and 35km northeast of Gold Fields’ (NYSE:GFI) St Ives processing plant.
Resource optimisation, metallurgical testwork and planning of additional oxide-focused drilling is now underway.
“The delivery of the maiden resource for Lucky Strike is a very pleasing outcome for the company, especially given the system is a greenfields gold discovery,” managing director Wade Johnson said.
“The shallow oxide resource is open at depth, and along strike, and gives sufficient encouragement to continue exploration to not only build the resource base, but to also focus early stage drilling along the 3000m mineralised corridor with the objective of discovering additional BIF (banded iron formation) systems.”
Lucky Strike was identified by aircore drilling in late 2017 with subsequent reverse circulation drilling identifying the gold system hosted by a northwest trending BIF, part of which is hidden by about 12m of transported cover.
Exploration on other anomalies near Lucky Strike such as Red Dale, Havelock, Neon, Capstan and Burns is also on the cards, highlighting the prospectivity of the district.
Lefroy is also looking forward to a drilling program in July at the Western Lefroy joint venture where major miner Gold Fields can earn up to a 70 per cent interest by spending up to $25m on exploration over six years from mid-2018.