Magnetic confident its Lady Julie gold project is shaping up well

Magnetic Resources is confident its Lady Julie gold project in Laverton has the potential for large-scale shallow deposits after the latest drilling program found multiple thick, high-grade zones.

Highlights from the drilling include:

20m at 2.6 g/t from 52m, including 8m at 5.8 g/t from 52m (MLJRC296);
36m at 1.7 g/t from 20m, including 4m at 13.3 g/t from 24m (MLJRC307);
32m at 1.4 g/t from 44m (MLJRC293);
32m at 1.3 g/t from 52m, including 8m at 4.2 g/t from 56m (MLJ298); and
41m at 2.6 g/t gold from 31m, including 15m at 4.2g/t from 52m (in previously drilled MLJRC162).

These promising anomalous gold zones are still open to the north and south, west and down dip and Magnetic Resources (ASX:MAU) are currently following up with 29 RC holes for 3200m – mainly within the 2km long Lady Julie North 1 target zone.

Assays are pending for a further 25 RC and 4 diamond holes for 2,569m.

Potential for large-scale shallow deposits

Managing director George Sakalidis said the multiple new high grade thick intersections are very exciting considering the regional geology, the project’s neighbours, and the current gold price.

As well as the drilling program, a detailed soil program has been carried out north of the Lady Julie mineralised zone , looking for repetitions of these anomalous soil targets over a length of 1.9km making the Lady Julie target zone an impressive 3.9km in length.

Aiming to convert to an indicated resource

A recent 2D seismic survey combined with results from recent major drill programs as well as historical drilling results have led to the interpretation of 15km of gold targets in 10 areas within HN5, HN6, HN9 and Lady Julie.

Two RC rigs are now planned on site to test and extend all 10 targets with the aim of ultimately converting to an indicated resource.

A total drill program of 104 RC drillholes for 9,892m is being carried out and further analysis of the extensive 6km long NS thrusts is planned to include both shallow RAB and/or soil geochemistry.

Sakalidis said that would “help outline any other anomalous gold areas that have not been previously assessed looking for further exciting near surface deposits in this gold fertile region”.

Stacked lodes like major deposits

The company has confirmed at least four multi-stacked thickened lodes which show similarities with the adjacent Wallaby, Sunrise Dam and Jupiter major gold deposits and could be a potential indicator for deeper mineralisation.

Added to this, many discoveries in recent times have been made by drilling below 100m because the historical drilling was far too shallow. At HN5, 6, 9 and Lady Julie the average hole depth is only 65m, which could provide tremendous scope for upside potential.

Plus, MAU is bolstered by the length of its 3km mineralised shear zone at HN9 which is similar to that of the large Jupiter, Wallaby and Sunrise Dam Deposits. The Lady Julie new intersections appear to have stacked zones as well and the current drilling programme will be examining the down dip stacked potential as well as infill drilling mainly to the north and south of MLJRC162 which intersected impressive intersections including 41m at 2.6g/t from 31m.

This article was developed in collaboration with Magnetic 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.