Deeper drilling at Lady Julie North 4 has confirmed what Magnetic has suspected, that gold mineralisation at the deposit extends below the thick, high-grade intersections it has already encountered.

Hole MLJRC779, sited east of MLJDD015 (45m at 2.65g/t gold from 130m), was drilled to a down-hole depth of 288m in an attempt to delineate the feeder zone below the high-grade intersections of up to 50m of silica-pyrite and breccia zones.

Encouragingly for Magnetic Resources (ASX:MAU), MLJRC779 performed better than it expected, returning a 112m intersection grading 1.81 grams per tonne (g/t) gold from 172m as well as a 24m at 4.78g/t gold from 64m.

Adding further interest, the company has now outlined thick breccia silica pyrite intersections over a strike length of over 250m in the central and southern part of LJN4, which remains open further south and down dip where the grade has so far been increasing with depth.

Efforts to further extend the thick breccia zones down dip and along strike are already under way with a further four holes currently under way while assays are pending for three RC holes in these areas.

The definition of these breccia zones is encouraging as such zones are important in the nearby world class Sunrise Dam Deposit as they often carry the highest gold grades and are associated with many of the individual deposits at depth and near surface.

There is also potential to find gold mineralisation within the broader Chatterbox shear, which contains LJN4 and continues southwards for a further 4.5km.

“We are now scoping out a 250m zone (between RC holes MLJRC789-792) where the silica-pyrite and breccia zones can reach up to 50m in thickness,” managing director George Sakalidis said.

“In addition, MLJRC783 had an intersection of 60m at 1.99g/t from 100m. MLJRC779 was successful in extending the depth of the gold rich alterations zones at depth.

“Further holes are also planned to chase this very promising extension at depth that remain open and are being followed up with two deeper holes locally and a number of holes along the entire strike over the 800m length of the LJN4 deposit as it still remains open down dip.”


Lady Julie North 4 just the start

Lady Julie North 4 is just 2.5km north of the Lady Julie Central deposit which in turn is 2.5km NE of the HN9 deposit.

All three areas are all 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.

But there is room for more as LJN4 is part of the north to north-northeast trending Chatterbox shear zone – a east-dipping structural corridor which can be traced for some 22km extending from the company’s southern boundary at Mt Jumbo and through LJN4 and as far north as the Beasley Creek gold deposit on the northeast boundary.

Within Magnetic’s tenements the shear zone, which is interpreted to comprise a series of braided faults and shears within a corridor ranging from 100m to 250m wide, can be traced for a distance of 12km.

Importantly, this shear zone is closely associated with gold mineralisation at several locations along its length including the company’s LJN4 and Mt Jumbo deposit.

This shear is gold rich and gold deposits further north of Magnetics tenements contain the Beasley Creek and Apollo deposits. It is also interpreted to extend south towards the world-class Wallaby deposit.



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.