Magnetic has kicked off drilling to follow-up on a tasty 18m at 4.1g/t gold intersection at its Lady Julie North 4 deposit within its Laverton project in WA.

The 14 hole reverse circulation program totalling 2,040m is designed to extend the higher-grade core within the central part of the deposit’s existing Indicated and Inferred resource of 2.7Mt at 1.27 grams per tonne for 109.000oz of contained gold.

Magnetic Resources (ASX:MAU) will also use the drilling to extend the length of resources both to the north and south over a 1km length and down-dip, which could further increase resources at the deposit.

The Lady Julie North 4 Resource forms part of the Lady Julie Combined Resources of 5.4Mt at 1.27g/t for 224,000oz. This in turn forms part of the overall resource of 13.1Mt at 1.22g/t totalling 511,000 oz for the Laverton Project area.

Separately, a shallow RC program of 23 holes totalling 1,016m will be carried out over the shallow Exploration Target areas in a bid to convert them into resources and to try to extend the Lady Julie Central very high-grade zone of 6m at 20.3g/t from 43m including 2m at 54.4g/t from 45m in MLJRC539.

The Exploration Target currently stands at between 2.6Mt and 3.6Mt grading 0.94g/t to 1.2g/t gold.

“With the Australian gold price at high levels of $2532, the Laverton Project Resources encompassing Lady Julie Central, Lady Julie North 4, HN9 and Homeward Bound South at Laverton, WA, are shaping up and have potential for large-scale shallow deposits,” managing director George Sakalidis said.

“The multiple, thick intersections that are all open down dip to the east and the high-grade core are very exciting at Lady Julie North 4.”

He added that besides the drilling to increase resources and convert some of the Exploration Target areas into more resources, the company had started economic studies on the four main deposits with significant shallow gold near surface which are all potentially open-cuttable.

Shallow mining potential

Lady Julie North 4 is just 2.5km north of the Lady Julie Central deposit that is 2.5km northeast of the HN9 deposit.

All three areas feature shallow deposits that start from surface in some areas, providing low strip ratios and potential for economic ore that is open-cuttable and are effectively part of one mining centre.

These deposits and the Homeward Bound South deposit make up the Laverton project, which has combined resources of 13.1Mt at 1.22g/t gold for 511,000oz of contained gold.



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.