Magnetic drilling targets stacked zones for gold resource growth

Magnetic may be progressing its Laverton project area towards mining but the company is nowhere done with continuing efforts to further boost resources.

Not only is mineralisation at the Lady Julie North 4 (LJN4) deposit open at depth and to the east, the company is also following up on two stacked zones where drilling has returned promising zones.

These stacked zones are present in the central area with the upper zone returning intersections of 20m at 1.5 grams per tonne (g/t) gold from 48m (MLJRC670), 44m at 1.2g/tr gold from 32m (MLJRC690) and 17m at 1.9g/t gold from 49m (MLJRC641).

Meanwhile, the lower zone returned intersections of 56m at 1.5g/t gold from 92m (MLJRC679) and 67m at 1.8g/t gold from 101m (MLJRC689A).

Magnetic Resources (ASX:MAU) adds that the two stacked zones are also noted in the northern zone which returned intersections such as 18m at 5g/t gold from 89m (MLJRC657) in the upper zone and 15m at 2.9g/t gold from 162m (MLJRC643) in the lower zone.

The company’s planned follow-up holes are located within the central area of the deposit, where the thickest intersections are present.

Importantly, they could deliver further growth as they are located outside the current resource of 3.2Mt at 1.93g/t gold, or 204,900oz of contained gold at LJN4.

“With the Australian gold price at record levels of $2675, the Laverton project resources encompassing Lady Julie Central, Lady Julie North 4, HN9 and Homeward Bound South at Laverton, are shaping up and have potential for large-scale shallow open-cuttable deposits,” managing director George Sakalidis said.

“We see two stacked zones within the centre and the northern end of LJN4 and our new drilling planned will test for the deeper thickening and coalescence of these stacked zones at depth.”

He added that is aimed at increasing resources at LJN4 with the recent engagement of contractor Blue Cap expected to fast-track approvals and further assess economics of the deposits.

Shallow, open pit potential

Lady Julie North 4 is located just 2.5km north of the Lady Julie Central deposit, which is itself 2.5km northeast of the Hawks Nest 9 deposit.

All three are shallow deposits with mineralisation starting from surface in some cases, providing for low strip ratios and the potential for open-cuttable economic ore that effectively makes them part of a single mining centre.

Besides the planned drilling of the stacked zones, the company also recently completed an aircore program along the southern extension of the LJN4 shear structure that is mapped and expected to continue south towards the Mt Jumbo gold resource.

Further work in this area is aimed at finding new satellite deposits that have not been drilled.

This shear zone is also associated with gold mineralisation at several locations along its length including the LJN4 deposit and gold deposits further north of Magnetic’s tenements.

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.