‘Tremendous scope for upside’ as Magnetic hits another 2 separate zones of 68m of gold at Lady Julie
Assays from the Lady Julie project in WA have highlighted further thick intersections, extending the down dip mineralised zones at the Lady Julie North 4 deposit (LJN4).
Magnetic Resources (ASX:MAU) has a commanding landholding in the 40Moz (mined plus resources) Leonora-Laverton district, home to large world-class gold deposits like Wallaby, Sunrise Dam, and Granny Smith.
The company is looking for similar +1Moz deposits on its tenure. Lady Julie North 4 is part of the 605,000oz Laverton project, which also includes Lady Julie Central, HN9, Mt Jumbo and Homeward Bound South, the Lady Julie Central deposit and the Hawks Nest 9 deposits.
The company has now identified up to three stacked zones within the centre and the southern end of LJN4, with many recent assays from the central 250m-long zone outside the current resource – which bodes well for the next resource upgrade.
The latest assays from 5 deeper RC/diamond drill holes returned results including 68m at 1.61g/t from 196m and 68m at 1.43g/t from 208m. The other holes also had significant wide intersections.
The drilling also highlighted significant thickness of breccia and silica pyrite alteration from 200.4m to 223.3m.
These are the same kind of strong, thick breccia zones that are prevalent in Anglo Ashanti’s world class Sunrise Dam deposit, which has both parallel to near-surface shear zones and vertical mineralisation going downwards into several of their individual deposits.
In addition, many discoveries in recent times have been made by drilling below 100m because the historical drilling was far too shallow, and with the average hole depth at 78m across the HN5, 6, 9 and Lady Julie deposits, MAU is confident there’s “tremendous scope for upside potential.”
“With the Australian gold price at record levels of $2996 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 and now after our recent drilling with strong depth potential greater than 200m depth at LJN4,” MD George Sakalidis said.
“This central 250m long zone is very promising due to the excellent grades and thicknesses found here and the strong correlation with breccia and silica-pyrite zones, which are also prevalent in the world class Sunrise Dam deposit, which has both parallel to near surface shear zones and vertical going downwards into a number of their individual deposits.
“This provides strong potential to grow the LJN4 resource.”
Further anticipated good results are pending from four RC holes for 1,310m and a diamond hole totalling 360m from the central and southern part of the LJN4 deposit where there are previous thicker intersections being followed up at depth.
In addition, a 1,750m diamond program has started and will be scoping out extensions both to the east and northeast with holes planned between 400m to 550m depth holes.
“The 4.5km southern extension of LJN4 along the Chatterbox shear remains as a high priority target due to its gold rich deposit inventory and the new discovery of deep breccia and alteration zones at LJN4, which have not been targeted previously,” Sakalidis said.
“Concurrently, the Blue Cap studies are near completion, which provides the company with the ability to fast-track work approvals and further assess the economics of the 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.