Magnetic keeps the Laverton party pumping with more high-grade gold hits

Magnetic Resources’ deep diamond drilling returns more high-grade gold hits
Results add to body of evidence that the 400m northern part of LJN4 is larger than previously known
Company has started new resource study that will be followed by updated economic study

Special Report: Magnetic Resources’ Lady Julie North is looking to be significantly bigger than previously thought after high-grade drill hits provided more evidence that a 400m northern zone is larger than estimated.

The latest result of 23m grading 6.3g/t gold from a down-hole depth of 317m – including 6m at 12.23g/t gold from 319m in hole MLJDD042 – along with 26m at 2.49g/t gold from 567m in MLJDD039 confirms the northern part of the 750m long LJN4 deposit plunges at least 600m to the southeast, is at least 650m down-dip and is up to 200m long.

LJN4’s current resource of 948,200oz of gold makes it the dominant deposit within Magnetic Resources’ (ASX:MAU) overall Laverton project in WA, which has a global resource of 24.9Mt at 1.66g/t gold for 1.33Moz of contained gold.

Recent deeper drilling has proven that the northern zone, which is associated with strong silica and green fuchsite, is substantially larger than the southern silica pyrite and breccia zone.

Previously reported holes in the current program include 25m at 3.86g/t gold from 386m at hole MLJDD048, a 200m step out below MLJRC804.

Assays from that hole returned 20m at 2.76g/t from 243m and 16m at 1.99g/t gold from 359m, alongside 13m at 2.02g/t gold from 393m in MLJDD044.

The recent pre-feasibility study for LJN4 outlining impressive open pit economics – including pre-tax IRR and NPV of 85% and $547m respectively – with further resource upgrades boasting the potential to improve those numbers.

LJN4 contains gold hits over a continuous length of 750m. Pic: Magnetic Resources

Likely resource upgrade

The MLJDD039 intersection is the deepest to date at LJN4, far below the modelled PFS open pit. It is not included in the current resource, highlighting the growth potential of the deposit.

The strike also adds the intrigue of a possible underground operation to extend the life of a future mine.

Like other world-class multi-million ounce deposits in the Laverton region, the company has identified eight stacked lodes in the central part of LJN4 with assays pending for a 717m hole drilled through these lodes.

“With the Australian gold price at record levels of $3,470 the Laverton Project Resources encompassing Lady Julie Central, Lady Julie North 4, HN9, Mt Jumbo and Homeward Bound South, are shaping up and have potential for large-scale shallow open-cuttable deposits,” MAU Managing Director George Sakalidis said.

Recent drilling delivers the potential to extend LJN4 at depths below 400m, he noted.

“A 400m long northern ultramafic zone has been extended at depth and is part of a very large 600m SE plunging zone that is up to 200m long and is still being tested further at depth with holes 54 and 55,” Sakalidis added.

“This northern mineralised zone is now bigger than the promising southern breccia silica-pyrite stacked zones and still growing.

“As a result of these promising results and extensions in the northern zone a new resource study has commenced, which will be followed by an updated economic study which will take into account the rising commodity prices.

“Concurrently, the Blue Cap studies are near completion, which provides the company with the ability to fast-track work mining approvals.”