Magnetic Resources high-grade hits deepen LJN4 gold growth

Deep diamond drilling continues expansion of Magnetic Resources’ Laverton deposit
Enlarging deposit believed to hold potential for open-pit and underground mining
Gold district remains the subject of major M&A chatter

Special Report: Magnetic Resources has logged more high-end intercepts from a still-expanding Lady Julie North 4 deposit near Laverton in Western Australia.

Magnetic Resources (ASX:MAU) hailed the intercepts as outstanding, hitting 24m at 5.1g/t, 76m at 2.4g/t, and 27m at 3.24g/t from three deep diamond holes.

The 400m northern end of the 750m long deposit continues to grow, with the down dip dimension now at a minimum of 1000m and beginning at a shallow 30m in depth.

The trio of results going over 80 gram-metres increased the size of the central core from 100m to 250m in down plunge extent, part of a larger 300m by 1000m zone which remains open at depth.

Assays remain pending for another 6 of the 9-hole campaign surrounding and directed at extending the promising central core.

Magnetic believes it has the potential for both an open pit and underground operation, and the continued enlargement of the deposit’s northern zone has spurred a feasibility study to incorporate both.

Assays from Magnetic’s updated economic study remain unincluded in its current resource, and the company believes its recent intercepts bode well for a larger inventory.

Longitudal projection of LJN4 in gram-metres, new results in yellow. Pic: MAU

Laverton land

Excitement around LJN4 was sufficiently positive for WA brokers Argonaut to include the project in its list of top undeveloped assets.

While it’s a great standalone development opportunity, LJN4 also sits in a Laverton area tense with competition.

There are some serious established players fighting for dominance in the area, and Magnetic itself has put a spotlight on the value of fresh discovery, becoming a $320m-plus company and a rumoured takeover target.

But regardless of what is being discussed behind closed doors, Magnetic is moving on development, with strong gold recoveries from recent testwork further demonstrating why it has an excellent resource standing ready for development.

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.