A 12-month multi-element study conducted by Laneway Resources (ASX:LNY) at its Agate Creek Gold Project has found evidence of an intrusion related gold system (IRGS) at the Sherwood and Sherwood West deposits.
The two-part study was conducted via analysis of over 47,000 samples from drill core collected at the Agate Creek area since 1993. It used both Metal Zonation Analysis and an Elemental/Alteration Geochemical Analysis, with both resulting in IRGS-style indicators.
IRGS deposits, which are one of three core types of gold deposits, host some of the world’s largest gold endowments including the 33.8 million ounce Donlin Creek deposit in Alaska’s Tintina Gold Belt.
Closer to home, North Queensland hosts a series of large IRGS deposits including the 5 million ounce Kidston mine, the 2 million ounce Woolgar project, and the 1.5 million ounce Mt Wright mine.
“Without exaggeration [the study] has transformed our understanding of the geology at Agate Creek and the scale potential of our ground in the region”
Speaking on the study results, Laneway Resources Managing Director Brad Gordon said: “We are very excited by the results of the multi-element study, which has been a year in the making with input from some of the best independent geological experts in the country. Without exaggeration it has transformed our understanding of the geology at Agate Creek and the scale potential of our ground in the region.
What had historically been considered an epithermal deposit at Sherwood is now looking increasingly like an IRGS system. Such deposits are generally recognized to offer larger scale potential and are characterized by multi-million ounce endowments. Whilst we already have a JORC Mineral Resource of close to half a million ounces at Agate Creek we might just be on the cusp of something much larger.”
Laneway reports that the study has been successful in generating a ‘wealth’ of targets for upcoming drilling, focussing on strike and depth extensions at the project’s Sherwood high grade mineralisation.
Metal zonation and element geochemistry work point to a more-significant gold target down-plunge at Agate Creek, which is deeper than past and current drilling activity.
Further analysis of regional gravity and magnetics data has also identified a potential felsic intrusive plug in the form of a gravity low, approximately 4.7 kms south of Agate Creek, creating another potential source for gold mineralisation at the project. Laneway has singled out this target as a specific area of interest for further drill work.
Images: Laneway Resources Ltd