Magnetic Resources hits 60m at 3.6g/t gold, the best gold intersection so far at Lady Julie North 4

Special Report: A 60m at 3.6g/t gold hit from 96m has been returned from the central part of the 800m long Lady Julie North 4 deposit, where several other drillholes also ended in mineralisation. These results and previous results show consistent great width and grade and many holes are outside the current resource pointing to a resource upgrade.

Magnetic Resources (ASX:MAU) says this will add to the existing, shallow resource at Lady Julie North 4 – only 2.5km north of the Lady Julie Central deposit and in turn, is 2.5km northeast of the HN9 deposit.

“These three areas are all shallow deposits and, in some cases, starting from surface providing low strip ratios and potential for economic ore that is open-cuttable and are effectively part of one mining centre,” the company says.

Large-scale potential for open-cuttable deposits

Other stand out results include 60m at 1.8g/t from 80m and 24m at 1.89g/t from 56m.

Assays are pending for seven reverse circulation (RC) holes for 866m and eight diamond holes for 1,478m, where drilling is following up previous intersections at depth as infill drilling.

Drilling is also testing for further extensions of the mineralisation outside the resource.

“With the Australian gold price at record levels of $2900, 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,” managing director George Sakalidis says.

Further resource extensions are anticipated with planned deep drilling of five RC/DD holes for 1,070m.

This deeper drilling will be assessed for potential extensions as well.

Previous work

In February, Magnetic upgraded the LJN4 resource to 3.3Mt at 1.93g/t gold, or 204,900oz of contained gold, about 28% of which is in the higher confidence Indicated category. The total inventory of resources is 605,000oz within the Laverton Project.

The recent drill program testing the upper and lower stacked zones looks set to further increase this even further while the completion of the Blue Cap studies will provide the company with the ability to fast track work approvals and further assess the economics of the deposits.

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.