Magnetic Resources has been delivering standout results from its Laverton gold projects, so it stands to reason that the company would seek out funds to accelerate its efforts.
While the company’s shares are still in suspension while it works out the final details of the capital raising, it doesn’t take a rocket scientist to deduce what it would use the funds for – lots more of that sweet drilling activity that has delivered the results to date.
And you don’t even have to step back very far from the present day to find examples of how drilling has returned very encouraging results for Magnetic Resources (ASX:MAU).
Just last week, the company revealed that recent reverse circulation drilling at the Lady Julie 4 prospect had struck two thick intersections of 28m grading 2 grams per tonne (g/t) gold from a depth of 36m including 2m at 3.37g/t gold from 40m and 40m at 1.79g/t from 60m including 8m at 6.67g/t from 60m.
This result was enough for the company to start a follow-up program of 14 RC holes totalling 1,720m over the broader 700m strike length of the prospect.
The success at Lady Julie 4 adds to recent results at the Lady Julie 1 prospect just 2.5km to the south, which returned 17 high-grade intersections including 25m at 4.38g/t gold from surface and 36m at 4.01g/t gold from 116m.
While these results are certainly worth crowing about, they don’t stand alone.
Hawks Nest 9 and other targets
Exploration at the neighbouring Hawks Nest 9 (HN9) project has also mapped out a 3km gold system that starts from surface and dips shallowly to the east.
Notable drill results include 12m at 1.5g/t gold and 8m at 2.5g/t gold from surface and 7m at 4.8g/t gold from 11m.
There are also indications that the zone between HN9 and Lady Julie North is highly prospective with numerous mineralised drillholes and anomalous soil geochemical areas in the process of being drilled.
Magnetic’s successes at both projects are also a very strong indicator that it has developed the right recipe to find gold in this area.
This technique involves the combination of magnetic signatures with seismic work to identify gold deposits and gold-bearing structures resulting in a high rate of discovery that has expanded the prospective area and strike length in the last 12 months.
It has also proved up the value of shallow aircore/RAB drilling, combined with the deeper RC drilling that is currently underway to confirm the district scale potential and gold-bearing structures at depth.
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.