Magnetic eyes resource growth on the back of more thick gold zones at Lady Julie
Magnetic Resources has found more thick gold at the Lady Julie project in Western Australia, intersecting 80m at 1.24g/t from 192m at the Lady Julie North 4 deposit (LJN4).
Magnetic Resources (ASX:MAU) has a commanding landholding in the 40Moz (mined plus resources) Leonora-Laverton district, home to large world-class gold deposits like Wallaby, Sunrise Dam, and Granny Smith.
The company is looking for +1Moz deposits on its tenure, with a focus on the Hawks Nest 9 (HN9) Lady Julie, and Homeward Bound South projects, which have a combined resource of 605,000oz.
Lady Julie is particularly promising. The nearby Sunrise Dam, Wallaby and Jupiter gold deposits have persistent internal shallow-dipping mineralised lodes which, in the case of Wallaby, have been defined down to 1,500m depth.
The company has now identified up to three stacked zones within the centre and the southern end of Lady Julie North 4 (LJN4), with the central 250m-long zone particularly promising due to the excellent grades and thicknesses reported to date.
In addition, LJN4 host the kind of strong, thick breccia zones that are prevalent in Anglo Ashanti’s world class Sunrise Dam deposit, which has both parallel to near-surface shear zones and vertical mineralisation going downwards into several of their individual deposits.
The central part of the 800m-long LJN4 deposit has now been infill drilled with very promising results today including 80m at 1.24g/t from 192m in MLJRC801, which ended in mineralisation.
Just 160m up dip from MLJRC801 is previous diamond hole MLDDO17, which had an intersection of 50.3m at 2.49g/t.
In fact, many previous holes in this zone, like 120m at 2.68g/t from 152m in MLJRC789 and 111m at 1.76g/t from 173m in MLJRC779, are outside the current resource, which MAU says bodes well for the next resource upgrade.
The plan now is to further increase the size the LJN4 Resource via the recent drill testing of the thickened high-grade breccia zone, with is still open to the east and the thickness has been increasing dramatically in an easterly direction and at depth.
“These zones containing MLJRC789, MLJRC779 and MLJRC679 are now being extended by new drilling at depth and further to the east,” Magnetic Resources Managing Director George Sakalidis said.
“This provides strong potential to grow the LJN4 resource.
“The 4.5km southern extension of LJN4 along the Chatterbox shear remains as a high priority target due to its gold rich deposit inventory and the new discovery of deep breccia and alteration zones at LJN4, which have not been targeted previously.”
Further anticipated good results are pending from four RC holes for 1,310m and a diamond hole totalling 360m from the central and southern part of the LJN4 deposit where there are previous thicker intersections being followed up at depth.
In addition, deeper drilling is planned to test deep extensions to the east of MLJRC779, which intersected 111m at 1.76g/t from 173m, with deeper diamond hole MLJDD031 and to the east of MLJRC789, which intersected 120m at 2.68g/t from 152m, with deeper RC hole MLJRC802.
“Concurrently, the Blue Cap studies are near completion, which provides the company with the ability to fast-track work approvals and further assess the economics of the deposits,” Sakalidis added.
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.