- Magnetic Resources upgrades LJN4 resource by 11% to 948,200oz of contained gold
- Upgrade is due to successful down-dip drilling
- Results from deep diamond holes still pending
- Company focused on completing PFS for the project and further resources growth
Special Report: Successful down-dip drilling has paid off for Magnetic Resources, allowing the company to upgrade contained gold within the Lady Julie North 4 deposit by 11% to 948,200oz.
It lifts the total resources reported for the company’s Laverton and Homeward Bound South projects to 24.9Mt @ 1.66g/t gold, or 1.33Moz of contained gold.
Adding to Magnetic Resources’ (ASX:MAU) plan to develop an open pit operation, 65% of the LJN4 resource – or 615,100oz of contained gold – now sits in the higher confidence indicated category that can be used in mine planning, after recent drilling confirmed lode continuity on and between sections.
The upgrade comes just a little more than three months since the company last upgraded resources at LJN4 by 317% in late November.
LJN4 currently has a footprint of 750m by 500m, with recent drilling confirming MAU’s previous interpretation of a moderately dipping, multi-lode structure.
Notably, recent step-out drilling has encountered large breccia zones – a development that augers well for the continuation of mineralisation at depth.
More gold could be on the horizon
Extension drilling is continuing at LJN4 and could deliver further resource upgrades as the northern, central and southern parts of the deposit remain open down-dip.
Results for six deep diamond holes are pending, while another is currently being completed.
“The Lady Julie North 4 resource has been the key focus for recent drilling, with multiple stacked lodes identified with a number of thick intersections that have still not been closed off at depth,” MAU managing director George Sakalidis said.
“The LJN4 deposit keeps on adding ounces, increasing from 204,000oz in February 2023 to 948,000oz in this report.
“The northern part of LJN4 is continuous over 300m down dip. The central part is continuous down-dip to 550 and the southern part is continuous down-dip to 400m.
“Note in all these cases, LJN4 is still open further down dip and augers well for future drilling and resource update.”
Focus on pre-feasibility studies
Following completion of all baseline background studies, MAU is focused on completing a pre-feasibility study, which is based on the resource defined in November 2023.
“Preparations are also under way for the development of a mining proposal,” Sakalidis says.
“One mining lease application has already been lodged over LJN4 with others following the lodgement of the mining proposal.”
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.