Magnetic Resources lodges application to grow Lady Julie gold deposit
Special Report: Magnetic Resources has lodged a mining lease application to expand its Lady Julie North 4 (LJN4) discovery off the back of last month’s resource update for its Laverton gold project in WA to 22.7Mt at 1.69g/t gold totalling 1.24Moz.
The company is on the hunt for big gold deposits on its 179km2 footprint in the heart of WA’s Laverton district, an established gold mining province with world-class deposits such as Wallaby, Sunrise Dam and Granny Smith.
Last month’s resource upgrade includes the LJN4, Hawks Nest 9 (HN9), Lady Julie Central (LJC), Mount Jumbo and Homeward Bound South deposits and represents an increase of 107% to the total ounces since the previous update back in February.
Magnetic Resources (ASX:MAU) has now applied for M38/1315 which overlays Magnetic tenements P38/4170 and E38/3127 and covers an area of 238Ha.
The application has now passed the initial 35-day period and will now move through the WA Department of Energy, Mines, Industry Regulation and Safety’s review and approvals process.
“This is a major milestone for the company,” MAU Managing Director George Sakalidis said.
“The mining lease application is the first stage in the mining approvals process.”
Notably, the application was made on the basis of the declared gold resource at LJN4 of 13.1Mt at 2.0g/t containing 852,000oz – and the company is confident there could be even more room to grow at the deposit.
“Concurrently, we are still drilling at depth below the existing 825,000oz resource beneath the Lady Julie North 4 resource,” Sakalidis said.
“Further drilling at depth is anticipated to result in further growth of the LJN4 resource and additional structural studies are being completed on the recent core holes to help understand the setting of the breccia and silica-pyrite zones.
“There are currently 2 diamond rigs and an RC rig on site trying to expand the resources both within and to the south along the Chatterbox shear along identified new target areas.”
Work is also continuing on the development of a mining proposal which will apply to both M38/1315 and a further mining lease over other key 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.