Magnetic drilling unlocks further gold riches in Laverton

Magnetic’s reverse circulation drilling has identified a 1km zone of prospective gold mineralisation at the Homeward Bound South project near Laverton.

Drilling returned top results of 20m grading 2.98 grams per tonnes (g/t) gold from a depth of 60m and 6m at 4.61g/t gold from 62m including 1m at 24.22g/t gold from 66m.

Importantly for Magnetic Resources (ASX:MAU), the 14-hole program has led to the recognition that the dip of the prospective Federation shear zone is close to 90 degrees rather than 60 degrees to the east and that previous drilling did not drill deep enough to intersect this prospective shear.

As such, the company is planning to drill a further 11 holes totalling 780m to better define the gold rich prospective shear zone, which shows up as a distinct aeromagnetic low zone.

“Homeward Bound South shows excellent upside with the recent reinterpretation of the dip of the gold mineralised Federation shear and the strong intersection of 20m at 3g/t from 64m in MHBSRC025 within a 1km prospective zone,” managing director George Sakalidis said.

The re-definition of the gold zone follows on recent successful RC drilling at the Lady Julie 4 prospect that led the company to start a follow-up program over the broader strike of the prospect and continued success at Hawks Nest 9.

Magnetic recently raised $1.02m through a placement of shares priced at $1.42, to fund additional deep drilling as well as metallurgical, resource and scoping studies at the Hawks Nest 9 and Lady Julie projects.

Magnetic Resources — Homeward Bound South location. Pic: Supplied

Homeward Bound South

The Homeward Bound South project comprises seven tenements covering 13sqkm about 50km west of the promising HN9 and Lady Julie projects.

It is located in an area with significant merger and acquisition activity with Sons of Gwalia Mine owner St Barbara acquiring a 19.8% stake in Kin Mining in July 2021 and Dacian Gold (Jupiter Mine) merging with NTM (Mertondale 5) in March.

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.