Magnetic reports multiple thick intersections at the Lady Julie gold project in WA

MAU reports up to 4.19g/t gold from diamond drilling at Lady Julie project
Company recently upgraded resource to 33.14Mt grading 1.81g/t gold for 1.93Moz
Feasibility study underway to investigate underground mining potential and to potentially increase the mining target to an impressive 150,000oz per year

Special Report: Magnetic Resources has reported ‘outstanding’ intersections in diamond drilling at its flagship Lady Julie gold project in WA with multiple thick intersections of up to 4.19g/t gold – just weeks after it upgraded the resource.

In late January, the company upgraded resources at the Lady Julie Gold Project to 28.11Mt grading 1.93g/t gold, or 1.75Moz of contained gold, with 75% (up from 68%) contained within the higher confidence indicated category that allows for mine planning.

This was thanks in no small part to the recent, deeper infill drilling increasing resources at Lady Julie North 4 from 23.1Mt at 2.01g/t gold to 23.6Mt at 2.04g/t gold.

Not to mention, overall resources across the company’s Laverton assets were also recently increased from 32.6Mt at 1.79g/t for 1.88Moz of contained gold to 33.14Mt at 1.81g/t for 1.93Moz of contained gold.

All of which adds to the expected production at Lady Julie of 150,000ozpa of gold over eight years.

Now, Magnetic Resources (ASX:MAU) has reported results of:

38m at 1.73g/t from 419m including 29m at 2.12g/t from 419m, including 5m at 4.19g/t from 443m 19m at 2.00g/t from 550m and 8m at 3.43g/t from 559m;
19m at 2.85g/t from 411m, including 6m at 3.79g/t from 411m, and 9m at 3.27g/t from 421m
20m at 1.74g/t from 201m, including 7m at 2.69g/t from 207m
26m at 2.20g/t from 246m, including 14m at 3.01 /t from 249m
14m at 1.77g/t from 332m, including 11m at 2.01g/t from 333m
24m at 1.17g/t from 488m, including 8m at 1.93g/t from 507m; and
8m at 2.16g/t from 64m.

Notably, the 400m northern part of the 750m long LJN4 is still increasing in size, with the down dip dimension now at least 1000m which importantly starts at a shallow 30m in depth.

The company says more assays are pending and more holes are planned with the goal being to increase the resource base even further.

Underground production potential

Due to the very promising enlargement of the northern zone at LJN4, MAU has commenced a feasibility study, which will incorporate both the open pit and the underground.

The company is also confident that this latest drilling, and a planned further four RC drill holes, will result in more resource growth.

This confidence is based on the fact that many discoveries in recent times like he nearby Sunrise Dam, Wallaby and Jupiter gold deposits have been made by drilling below 100m because the historical drilling was far too shallow.

And at HN5, 6, 9 and Lady Julie the average hole depth is only 89m, providing tremendous scope for upside potential.

“With the Australian gold price at record levels of $4580 the Laverton project resources, encompassing Lady Julie Central, Lady Julie North 4, HN9, Mt Jumbo and Homeward Bound South, have potential for large-scale shallow open-cuttable deposits – and now after our recent drilling with strong underground potential with the main lode going down from 400m to 1000m downdip,” MAU managing director George Sakalidis said.

“As a result of these promising results and extensions in the northern zone a feasibility study is being completed and will include both open cut and underground resources for the first time.

“Concurrently, the Blue Cap feasibility studies have commenced, which provides the company with the ability to fast-track work mining approvals.”

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.