Magnetic drilling expands gold footprint at Lady Julie North 4

There’s plenty of room for Magnetic to expand gold resources at its Lady Julie North 4 deposit if its latest drilling extending mineralisation is anything to go by.

Results such as 20m grading 1.06 grams per tonne (g/t) gold from a down-hole depth of 52m (MLJRC624), 16m at 1.81g/t gold from 88m (MLJRC625) and 8m at 2.35g/t gold from 100m (MLJRC626) have extended mineralisation by 200m to the north of the existing 600m long resource envelope.

Adding further interest, an intersection of 20m at 1.67g/t gold from 48m in hole MLJRC641 has allowed the company to identify a new, near-surface zone just south of the centre of the deposit that is open to the east and site above steeper dipping resources.

Magnetic Resources (ASX:MAU) notes that this intersection is east of the calculated resource and expands the potential east-west extent of the mineralised zone to more than 150m.

Separately, a deeper intersection of 32m at 1.67g/t gold from 144m (MLJRC629) just north of the deposit is thicker and outside the calculated resources to the west.

“With the Australian gold price at high levels of $2515, the Laverton Project Resources encompassing Lady Julie Central, Lady Julie North 4, HN9 and Homeward Bound South at Laverton, WA, are shaping up and have potential for large-scale shallow open-cuttable deposits,” managing director George Sakalidis said.

He added that the latest drill intersections at Lady Julie North 4 enlarges the potential resource area in an east-west direction and that the zone overlays deeper resources, which may enlarge the economic potential down dip because of the addition of this near surface material.

“This is an exciting time for the company having announced its Maiden Resource on 27 June 2022 and now looking to increase the size of both the Lady Julie 4 Resource and convert some of the Exploration Target areas into Resources,” he explained.

Lady Julie North 4 currently has an Indicated and Inferred Resource of 2.7Mt at 1.27g/t gold for 109,000oz of contained gold and forms a key part of the overall Lady Julie resource of 5.4Mt at 1.27g/t gold, or 224,000oz of contained gold.

Forward plan

The company plans to drill four holes to test the continuity of mineralisation further east of the nearer surface gold zones intersected in MLJRC641.

Another two holes – MLJRC676-677 – are planned to expand the deeper zone intersected in MLJRC629 further at depth.

Magnetic pointed out that the nearby Sunrise Dam (16Moz), Wallaby (7moz) and Jupiter (1.3Moz) deposits have persistent internal shallow-dipping mineralised lodes, which are ubiquitous throughout these deposits and have been defined down to 1500m depth at Wallaby.

Additionally, many recent discoveries have been made by drilling below 100m because the historical drilling was far too shallow.

As such, its HN5, HN6, HN9 and Lady Julie offer plenty of potential as the average hole depth is just 72m.

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.