Magnetic is increasingly confident of increasing resources at its Lady Julie North 4 deposit within the broader Laverton project in WA following the receipt of initial assays from its recent drilling program.

While assays such as 16m grading 2.93 grams per tonne (g/t) gold from 80m and 16m at 3.09g/t from 68m are certainly pleasing, it is the prospect of deeper mineralisation that really has the company’s motors running.

Hints that this could come to pass can already be found in some of the latest intersections being open at depth and there’s no doubt Magnetic Resources (ASX:MAU) eagerly anticipates the upcoming assays for the numerous deeper reverse circulation and diamond holes it had drilled.

These include hole MLJRC772, which was completed below previous intersections such as 24m at 2.03g/t from 147m in MLJRC629 and 20m at 2.07 from 124m in MLJRC766, and MLJDD013 that tested below 12m at 2.62g/t from 140m in MLRC697.

Meanwhile, diamond hole MLJDD016 has tested below the intercepts of 96m at 1.23g/t from 54m and 30m at 2.32g/t from 108m in hole MLJRC679.

Assays are also pending for 20 RC holes totalling 2,723m and seven diamond holes for 1,689m which are following up on previous thicker intersections at depth as well as infill drilling the central and southern part of the LJN4 deposit.

“With the Australian gold price at record levels of $2900, the Laverton Project Resources encompassing Lady Julie Central, Lady Julie North 4, HN9, Mt Jumbo and Homeward Bound South, are shaping up and have potential for large-scale shallow open-cuttable deposits,” managing director George Sakalidis said.

 

Growing gold resource

He added that the company saw two stacked zones within the centre and the northern end of LJN4 while the northern part of the 800m long LJN4 deposit has been infill drilled with promising results.

“The recent drilling completed show thick intersections as before and a number of these intersections at Lady Julie North 4 are still open at depth with some thickening at depth in both the upper and lower stacked horizons. This is exciting with potential to again increase this resource at LJN4 with the new drilling planned.”

Magnetic had in February upgraded the LJN4 resource to 3.3Mt at 1.93g/t gold, or 204,900oz of contained gold, about 28% of which is in the higher confidence Indicated category.

The recent drill program testing the upper and lower stacked zones looks set to further increase this even further while the completion of the Blue Cap studies will provide the company with the ability to fast track work approvals and further assess the economics of the deposits.

 

 

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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