Magnetic says the Lady Julie project has mineralisation that potentially goes to 1km down-dip. Pic: via Getty Images
Magnetic Resources sees further strong upside potential with more thick high-grade gold at Lady Julie
Mining
share
- Magnetic flags four high-grade hanging wall intersections at Lady Julie North 4
- Deposit is part of the shallow, high-grade Lady Julie project
- The company is confident of further resource growth potential
Special Report: Magnetic Resources is eyeing the upside potential at its Lady Julie gold project in WA after reporting four thick high-grade hanging wall intersections from the Lady Julie North 4 (LJN4) deposit.
Lady Julie is a large, near-surface, high-grade project, which makes it financially attractive as a standalone open-cut project with low-cost, high-margin gold production of 817,470oz, averaging 104,000 oz/year, over an eight-year life of mine.
And that does not include any economics from the underground, which will be included in an upcoming feasibility study.
Magnetic Resources’ (ASX:MAU) is planning to deliver that from an open-pit mining inventory of 16.03Mt at 1.71g/t gold, containing 883,000oz gold.
And it looks like there could be even more upside at the project, with deep drilling in hole MLJDD056 at LJN4 flagging multiple thick high-grade hanging wall lodes for the first time – which appear to increase in number as the company drills further east.
Notable results include:
- 23m at 2.25g/t from 256m, including 8m at 5.21g/t from 256m
- 13m at 1.46g/t from 340m
- 19m at 2.13g/t from 383m including 6m at 4.03g/t from 383m HW
- 6m at 4.28g/t from 430m; and
- 37m at 1.81g/t from 491m including 3m at 5.46g/t from 491m and further including 16m at 2.45g/t from 502m.
Worth a mention, too, are the results from drill holes MLJDD055 and MLJDD053, which include:
- 10m at 2.80g/t from 262m (MLJDD055)
- 21m at 1.59g/t from 350m including 7m at 3.11g/t from 350m (MLJDD055)
- 10m at 2.26g/t from 523m (MLJDD055)
- 20m at 1.59g/t from 544m including 6m at 2.93g/t from 544m (MLJDD055)
- 17m at 1.81g/t from 278m, including 6m at 3.50g/t from 289m (MLJDD053).
Room for resource growth
These latest intersections are below the open pit from the company’s updated economic study – and are not included in the current resource.
Managing Director George Sakalidis says this bodes well for the enlargement of the resource, increasing both the potential size of the open pit and now for the first time, the underground mining potential of LJN4.
“With the Australian gold price at record levels of $3890, 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,” he said, adding:
“As a result of these promising results and extensions in the northern zone, a feasibility study has commenced and will include both open-cut and underground resources for the first time.”
Looking for another LJN4
Importantly, the Chatterbox Shear Zone (CSZ) cuts through LJN4, and is closely associated with gold mineralisation at several locations along its length including LJN4 and the company’s Mt Jumbo deposit.
This shear is gold-rich – gold deposits further north of Magnetics tenements include Beasley Creek and Apollo – and is interpreted to extend south towards the world-class Wallaby deposit.
Looking forwards, diamond drillhole MLJDD065 (425m) is in progress and MLJDD061 (550m) and 64 (650m) are planned with assays pending for six diamond drillholes totalling 3871m.
“There is also an extensive 21-hole 4490 RC program that has commenced targeting the Chatterbox shear with systematic drilling spaced 150m apart looking for repetitions of the LJN4 deposit south and along strike over a 5km length,” Sakalidis said.
“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.
