Magnetic discovers +40m thick gold intersections at greenfields ‘Homeward Bound South’ project
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Special Report: Highly successful explorer Magnetic Resources has purchased the ‘Homeward Bound South’ tenements near Leonora after early stage drilling returned shallow, +40m thick gold intersections.
Magnetic (ASX:MAU) managing director George Sakalidis has a +20-year history of finding profitable mineral deposits on ground many others considered ‘worthless’.
Magnetic is currently uncovering the massive potential of Hawks Nest 9 (HN9), a discovery which could become the Laverton region’s next multi-generational gold mine.
Following a successful first pass drilling program the explorer has now purchased 11 tenements comprising Homeward Bound South – about 60km from HN9 – for just $50,000 cash and 250,000 shares.
The 21sqkm project covers the Federation and Kalata shear zones, which are a potential ‘source’ of gold bearing fluid.
Two recent drilling programs across Federation and Kalata included a 12-hole, 873m reverse circulation (RC) drilling program and a 103-hole, 2742m rotary air blast (RAB) drilling program (with holes averaging 27m depth).
This drilling is “the only record of any systematic modern exploration along the 4.5km strike extension of the Federation Shear”, the company says.
They returned a number of promising thick and wide gold intersections.
Notable results at Kalata included 19m at 1.1 gram per tonne (g/t) from 32m to end of hole, while Federation returned 25m at 1.25g/t from 12m to end of hole (including 12m at 2.2g/t from 12m).
A number of these gold intersections remain ‘open’ at depth and mainly to the south, which means Magnetic doesn’t know how big these mineralised zones are just yet.
But most of the intersections are within broad strong ‘alteration’ zones (rocks that have undergone composition changes since their original formation) which does indicate “some size potential”, Magnetic says.
The soil geochemical pattern in the south also suggests a potential 1.5km southern splay off the Federation shear, which has not yet been drilled by Magnetic.
Sakalidis says Homeward Bound South has shown excellent upside, with the length of both the Kalata and Federation shears at this stage totalling 2.3km in length.
“Both shears contain gold intersections up to 40m thick with excellent down dip potential, as most holes are less than 75m in depth,” Sakalidis says.
“Further upside is indicated by a 1.5km long NS geochemical anomaly trending southwards from the northern mineralised Federation shear.”