An upgrade to the Lady Julie North 4 Resource is looking likelier than ever after Magnetic’s drilling intersected high-grade gold outside the current resource area.

  • Notable results such as 8m at 9.48 grams per tonne (g/t) gold from a down-hole depth of 49m (MLJRC686), 16m at 6g/t gold from 92m (MLJRC687) and 12m at 1.92g/t gold from 68m (MLJRC674) certainly indicate that the current resource of 2.7Mt grading 1.27g/t gold, or 109,000oz of contained gold were drilled outside the current resources which is decidedly conservative.
  • A Maiden Resource announced 27/06/2022 of 5.6 Mt Indicated @ 1.25g/t containing 225,700oz and 7.5 Mt Inferred @ 1.19g/t containing 285,600oz for a total of 13.1Mt @1.22g/t containing 511,000oz at 0.5g/t cutoff. Depth of drilling averages only 71m on all projects and seismic indicates large depth potential across numerous major thrust zones.

Adding further interest for Magnetic Resources (ASX:MAU), infill drilling at Lady Julie Central have returned robust high-grade intersections from surface of 16m at 3.97g/t gold (MLJRC663) and 28m at 1.81g/t gold (MLJRC665).

This drilling also returned a 24m intersection at 2.03g/t gold from 14m (MLJRC629) just north of the deposit’s centre that is both thicker and outside the calculated resources to the west.

Strong silica-pyrite-fuchsite alteration correlating with gold intersections has also been noted in logging in holes MLJRC631 and MLJRC642. The extent of this alteration within the surrounding holes will be examined when the reverse circulation chip logging has been completed.

Gold prices high

“With the Australian gold price at high levels of $2620, 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.

He noted that the multiple thick intersections at Lady Julie North 4 are open down dip to the east and the high-grade core are very exciting adding that new drill intersections showing anomalous gold zones near surface enlarge the potential resource area in an east-west direction.

“This zone overlays deeper resources, which may enlarge the economic potential down dip because of the addition of this near surface material,” Sakalidis added.

“A new thickened intersection at depth, 24m at 2.03g/t from 147m in MLJRC629 is being followed up to the east and at depth. Several drill hole results are awaited, testing both the shallow and deeper potential in and east and down dip direction.

“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.”

Forward plan

Magnetic is currently planning an aircore program of 38 holes totalling 2,850m to test the southern extension of the Lady Julie North 4 shear structure that is mapped and is expected to continue south towards Mt Jumbo gold resource.

This shear zone is a complex north to north northeast-trending, east-dipping structural corridor which can be traced for 22km extending from the company’s southern boundary at Mt Jumbo and through Lady Julie North 4 and as far north as the Beasley Creek gold deposit on Magnetic’s northeast boundary.

Importantly, this shear zone is closely associated with gold mineralisation at several locations along its length including the Lady Julie North 4 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.

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