Magnetic could be sitting on a large-scale gold play – here’s why
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Results from Magnetic’s recent 2D seismic survey has supported its belief that the HN9 and Lady Julie areas are part of a shallow, large-scale gold mining centre.
The survey has identified eight persistent thrusts that come close to surface and are at least 6km in length and extend the HN9 and Lady Julie mineralised areas and structures northwards into the HN5 and HN6 areas.
Magnetic Resources (ASX:MAU) notes that some of these thrusts are already mineralised while a deeper drill program of 22 holes totalling 3,280m to test these large prospective thrusts is already underway.
“With the Australian gold price at near record levels of $2,297, the HN9 and Lady Julie project – being only 15km NW of the Granny Smith operations owned by Gold Fields Australia, and only 10km NE of the Jupiter operations owned by Dacian Gold at Laverton – are shaping up and have potential for a shallow large-scale mining centre,” managing director George Sakalidis said.
“The final seismic results have generated some outstanding targets, including eight shallow easterly dipping thrusts that are 6km in length, a 4 sqkm thrust interpreted to be associated with the 3km long HN9 mineralisation, a new southerly dipping extension of the thickened mineralisation, another potential thickened zone and a fold trap site with potential vertical fluids. “
The 2D seismic survey and 30 sqkm passive seismic survey were designed to grant the company a better understanding of the regional geology, structures and architecture, evaluate down-dip extensions of the mineralised lodes, identify repeats of mineralised lodes at depth and along strike and assist in further targeting of new structures.
Notably, the results highlight the 4 sqkm Thrust 5, a linking thrust that correlates with HN9 mineralisation, as a priority target with deeper drilling planned.
Additionally, the thickened mineralised zone HN9 is interpreted to extend towards the NS seismic section and is shown up by the intersection of flat-dipping Thrust 5 and shallow south dipping Thrust 4 and is an area of seismic complexity.
This zone and its 2km southern shallow south-dipping extension is also considered to be a high priority for drilling while another similar prospective thickened target is present at the intersection of Thrust 5 and Thrust 3.
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.