Laneway Resources has received near-surface high-grade gold drilling results from Agate Creek, further boosting its confidence in the presence of a game-changing deposit at the project.

The results follow Laneway Resources’ (ASX:LNY) discovery last month of a potential Kidston-style intrusion-related gold system (IRGS) showing strong similarities to the systems that host some major gold mines.

One of these was Kidston, once Australia’s largest open cut gold mine and located in the same pocket of North Queensland as Laneway’s 100% owned Agate Creek.

Notable intercepts from the first two holes of the 49-hole drilling program over 2,774m include 1m at 9.68 grams per tonne (g/t) gold from only 12m and 14m at 5.84g/t from 36m, including 1m at 33.9g/t from 45m and 1m at 18.7g/t from 40m.

Overall, the results so far have confirmed extensions of the previously mined veins, along with formerly identified deeper and almost parallel systems which also host narrow high grade gold zones.

It is expected the assay results still pending will demonstrate extensions to these zones, with further assay results due next month.

The current drilling is the first phase of a multi-stage program following last month’s identification of IRGS potential in a study that had input from some of Australia’s best independent geological experts.

“We are pleased to be getting immediate high grade drilling results with the first drill holes in our program following up targets generated from the recently completed multi-element study,” Laneway Managing Director Brad Gordon said.

“As the program continues, we look forward to confirming the IRGS hypothesis for Agate Creek and our initial targets of along strike and deeper extensions of the known gold mineralisation.”

The current program will additionally help with pit designs and waste rock sampling as part of Environmental Authority amendment applications.

Next steps for Laneway

The reverse circulation drilling program will be followed up shortly with a geotechnical diamond drilling program, which will assist with pit design and target additional deeper zones.

The diamond drilling program will continue into 2022.




This article was developed in collaboration with Laneway 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.