More deep gold hits to 1km downdip add up to some sweet underground mining potential at Magnetic’s LJN4 deposit. Pic: Getty Images
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Special Report: Magnetic Resources is increasingly confident of being able to add underground mining to open pit operations at its Lady Julie North 4 deposit (LJN4) after intersecting more deep gold.
Drill intersections such as 11m grading 2.21g/t gold from a down-hole depth of 592m, including 5m at 4.62g/t from 592m (MLJDD057), 18m at 1.16g/t from 584m and 18m at 2.15g/t from 674m (MLJDD058) and 11m at 2.26g/t from 609m (MLJDD060) were reported far below the open pit design and outside the current resource.
Not only does this bode well for enlarging Magnetic Resources’ (ASX:MAU) LJN4 resource, the grade thickness within these deeper intersections in the northern part of the deposit also demonstrates the potential for underground mining.
The latest results add to previous deep intersections in holes MLJDD053, MLJDD055 and MLJDD056 that are below the open pit from the company’s updated economic study and are also outside the current resource of 1.49Moz at the deposit.
Such results led managing director George Sakalidis to flag the potential for underground mining at LJN4 in early October.
He now added the results had extended the 400m long northern ultramafic zone, which is in turn part of a very large 1000m south-east plunging zone that is up to 300m long and is still being tested further at depth.
“This northern mineralised zone (300m x 1000m) is now bigger than the promising southern breccia silica-pyrite stacked zones (200m x 300m) and is still growing,” Sakalidis said.
“Seven diamond holes that include pending assays and further holes (2988m), are surrounding and looking to extend our promising MLJDD042. Hole 42 has one of our best intersections of 23m at 6.29g/t from 317m, which is at the base of the open pit and the underground interface.
“Concurrently, the Blue Cap feasibility studies have commenced, which provides the company with the ability to fast-track work mining approvals. Continuing with global investment bank Jefferies, who are helping ongoing review opportunities to maximise shareholder value.”
MAU is currently completing further infill drilling in the 400m long northern end of the LJN4 pit design where drilling has extended the down dip dimension, which starts at a shallow 30m, from 750m to at least 1000m.
Results from the infill drilling will contribute to an ongoing feasibility study that will assess the potential for underground production in addition to the open pit schedule outlined in the Lady Julie updated economic study.
Mineralisation targeted for the initial underground resource will have favourable attributes for underground mining with a zone of high grade (+3g/t) mineralisation over a 150-200m strike length, averaging 10-15m in width.
Assays are currently pending for five diamond holes (MLJDD059, 61, 65, 66 and 68) totalling 2218m.
Holes MLJDD067 and MLJDD069 are currently in progress while the company also plans to drill MLJDD064, 70, 71, 72 and 73.
These seven holes surround MLJDD042 and are aimed at extending rich mineralisation at the base of the open pit and the underground interface there.
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.
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