Magnetic Resources (ASX:MAU) is planning deeper reverse circulation (RC) and diamond drilling to test extensions at the Lady Julie North 4 (LJN4) deposit in Western Australia.
The $208.51 million market capitalisation company plans to extend 2 and in some cases 3 stocked lodes found in the central, southern, and northern parts of LJN4.
Many of these lodes are outside the resource and have potential for the enlargement of the LJN4 resource, according to Magnetic.
This news follows after assay results were received from drillhole MLJRC801, within the ‘high priority’ central 250m long gold-rich breccia silica pyrite alteration area and has an additional thick intersection of 80m @ 1,24g/t Au from 192m, which ended in mineralisation.
Diamond drillhole MLDD017 intersected 50.3m @ 2.49g/t Au from 160m, which is an up dip from drillhole MLJRC801.
This ‘high-grade’ intersection is associated with a 50m thick breccia zone with some silica-pyrite alteration from 160.6m to 210.4m and ended in mineralisation.
A similar 50m thick breccia and silica pyrite zone was uncovered 100m to the north in drillhole MLJDD016, which had an intersection of 45m @ 2.65g/t Au from 130m.
Magnetic says these 50m intersections are of ‘high priority’ as is the 250m length zone in the central and southern part of the deposit.
Studies are progressing to further understand the dip and plunge of these thick ‘high-grade’ breccia zones and 4 RC holes for 1,310m and a diamond hole totalling 360m are currently being drilled within this very promising 250m zone.
The company adds that drillhole MLJRC779 returned a very thick intersection of 111m @ 1.76g/t Au from 173m, which ended in mineralisation and also had a shallow zone above this intersection of 22m @ 5.39g/t Au which was confirmed by 1m splits.
Magnetic is currently drilling RC hole MLJRC803 further downdip from drillhole MLJRC801.
The company says the multiple very thick intersections in this 250m long zone are still open to the east and the thickness has been increasing ‘dramatically’ in an easterly direction and at depth.
Magnetic Resources is a new emerging gold producer in Western Australia. The company has a number of ‘significant’ gold assets including the Lady Julie Central, Lady Julie North 4, and Hawks Nest 9 projects in the Laverton region.
As of 30 June 2023, the company had $4.1 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Magnetic Resources