Emerging gold producer Magnetic Resources (ASX:MAU) is anticipating further resource extensions through planned deep drilling at its Lady Julie North 4 (LJN4) deposit in Western Australia.
This deep drilling will comprise of 4 reverse circulation (RC) holes for 916m and will assess for potential extensions within the thick breccia silica-pyrite zones uncovered from recent drill assays.
The $127.95 million market capitalisation company says a ‘significant’ number of drillholes in the area end in mineralisation and are outside the resource.
The company adds this will ultimately add to the existing resource at the deposit.
Magnetic reports the central part of LJN4 has returned ‘outstanding’ thick drill intersections, including drillhole MLJRC738 with 60m @ 3.6g/t Au from 96m, as reported to the ASX on 23 June 2023.
Follow-up drilling down-dip returned further ‘high-grade’ thick results in drillhole MLJDD015 with 45m @ 2.65g/t Au from 130m and drillhole MLJDD016 with 30m @ 5.53g/t Au from 145m.
The company says these 2 diamond holes uncovered ‘strong’ silica-pyrite and breccia alteration that are up to a ‘very thick’ 52m in combined thickness in drillhole MLJDD015, with a correlation with the main mineralised gold intervals.
Magnetic notes that this breccia and silica-pyrite zone is being further tested with 2 deeper holes.
drillhole MLJDD016 is still open down dip, as is the entire 800m strike length of the LJN4 deposit
Further, the company adds drillhole MLJDD016 is still open down dip, as is the entire 800m strike length of the LJN4 deposit, which is being tested with a number of deeper drillholes.
The main mineralised zone is continuous over the 800m of strike, dips 35 to 45 degrees to the east, and is thickening to the south. The company reports deeper holes are planned to the south of the intersection in drillhole MLJRC738, as the existing holes to the south have ended in mineralisation.
About 5 holes are planned initially to help outline these ‘thicker high-grade’ zones going southwards.
The company is still awaiting assays for 7 RC holes for 1,222m and 12 diamond drillholes for 1,324m, which are mainly testing for further extensions of the mineralisation outside the resource.
Magnetic Resources is a new emerging gold producer developing a portfolio of gold projects including the Lady Julie Central, Lady Julie North 4, and Hawks Nest 9 in the Laverton region of Western Australia.
On 31 March, the company had $2.997 million cash and cash equivalents at hand, according to its latest quarterly report published on 27 April 2023.
Write to Aaliyah Rogan at Mining.com.au
Images: Magnetic Resources NL
