Magnetic grows gold resource, eyes further expansion
Magnetic has upgraded combined resources at its Laverton and Homeward Bound project area by 18% to 13.5Mt at 1.4g/t gold, or 605,000oz of contained gold.
The upgrade is due to successful drilling at the Lady Julie North 4 (LJN4) and Lady Julie Central (LJC) deposits, the former of which now hosts the largest resource in the field.
Significantly for Magnetic Resources (ASX:MAU), LJN4 has seen its resource grade increase from 1.27g/t to 1.93g/t, which has the potential to increase returns as it means the recovery of more gold in the same amount of material.
To top it off, the deposit remains open at depth while similar deposits are being explored along the extensive 12km Chatterbox shear.
Recent preliminary metallurgical testing has also found that gold is readily recoverable from LJN4 and LJC with recoveries of between 35.3% and 75.1% achieved using simple gravity recovery.
“The Lady Julie North 4 Resource has been the prime drilling focus over the last six months. It has two stacked lodes with a number of thick intersections that have not been closed off at depth,” managing director George Sakalidis said.
“The deeper drilling started on 25 January with a programme of 13 RC holes for 2532m (averaging 195m).
“This deposit sits within a regional structure called the Chatterbox shear that extends over a 12km length within the Magnetic tenements. This shear extends southwards of Lady Julie North 4 and has had initial AC drilling completed and some anomalous intersections that will be followed up with some shallow RC drilling for the purpose of finding further satellite gold deposits.”
He added that project studies – with assistance from Blue Cap Mining – are being carried out concurrently with drilling to help the future development and production opportunities that these expanded resources bring to the company.
The key deposits within the Laverton and Homeward Bound project area near Laverton, Western Australia, are all close to each other and form part of one mining field.
Extensive infrastructure is present in the region including three processing plants within 35km, which provides the company with plenty of options if it decides to go down the toll treatment route for developing its gold resource.
LJN4 now has a resource of 3.3Mt at 1.93g/t gold, or 204,900oz of contained gold, about 28% of which is in the higher confidence Indicated category.
This resource remains open down dip and to the east, which augurs well for further growth.
An infill drill program of 13 reverse circulation holes totalling 2,532m is currently underway to extend the mineralisation at depth.
Meanwhile, LJC has a resource of 1.36Mt at 1.67g/t gold, or 73,100oz contained gold, with Indicated resources making up nearly half of the total.
The potential to expand the resource at Lady July Central is considered strong on the basis of mineralised but isolated intersections to north and south – along strike.
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.