The Conversation (0)
Magnetic Resources NL (Magnetic or the Company) is pleased to announce, after a significant 107% increase in overall resource in our Laverton Project to 22.7Mt @1.69g/t totalling 1.24moz of gold at 0.5g/t cut off and LJN4 increased by 317% from 204,000oz to 852,000oz, which was announced on November 23 2023 (Table 1), a number of deeper step out holes were carried out to see whether the LJN4 resource could be extended further at depth. Some compelling and exciting intersections are outlined below.
- MLDD033 intersected 16m at 4.51g/t from 411m, which was a very large 200m step out below the current resource (Figure 1). This intersection of 72 gram- metres is potentially underground mineable and is still open downdip. The section in Figure 1 indicates mineralisation continuity of 550m down dip, which is by far the biggest down dip extension identified to date within LJN4. This structure and mineralisation is expected to continue at depth within the Chatterbox shear, which is a regional scale structure that controls many deposits along its length including LJN4, Apollo, Beasley Creek and Wallaby. A seismic survey Magnetic completed (ASX Release 15 February 2021) shows a depth extent of 1.5km.
The above intersection in MLJDD033 occurs partly in a pyrite bearing black shale with intercalated carbonate and minor breccia, and partly in a pyrite-bearing carbonate with pyrite ranging from disseminated to semi-massive, which is a new style of alteration. - New hanging wall mineralisation was also discovered in MLJD033 with an intersection of 2m at 15.32g/t from 247m, and 8.7m at 2.43g/t from 107m and 13m at 1.00g/t from 135m in MLJDD032. These hanging wall intersections are associated with a breccia zone and are planned to be followed up with RC drilling.
- MLJRCD826 intersected a 40m thick breccia zone from 270m-310m, which visually looks very promising and has assays pending (Figure 2 and 5). It is directly 65m down dip from MLJDD031 which intersected 21m at 5.37g/t from 198m within a breccia. This is in turn 50m down dip from MLJDD016, which intersected 30m at 5.53g/t from 145m, which is also within a breccia.
MLJRCD826 is a large step out and is outside the current resource which augers well for the next resource upgrade. MLJRCD826 is still open down dip and to the south and RC holes are being planned to follow up this promising thick breccia zone. - MLJRCD802 intersected our best intersection to date, of 133m at 2.87g/t from 173m, which includes 61m at 4.68g/t from 243m (1m splits). Assays are awaited for the down dip extension within MLJRC820 from 290m to 453m (Figure 3).
- MLJDD034 intersected 6.8m @12.06g/t from 151m (contained within a 11.5m zone with 4.8m of core loss) in a gossanous chert breccia.
The multiple very thick intersections which often contain silica-pyrite and breccia alteration, are up to 50m thick. These are mainly within a 250m long central zone, which is still open to the south and east.
The central part of the 800m long LJN4 deposit has been infill drilled with very promising results. Highlights of this drilling are shown in Table 4, Figures 1-4.
Figure 1. Cross section for LJN4 central area showing high-grade dipping gold zone containing resource model outline and MLJDD033 being a down dip extension of over 200m and being part of a very large 550m interpreted down dip extension.
Figure 2. Cross section for LJN4 centre area showing thickened high-grade dipping gold zone containing breccia and silica-pyrite alteration, resource model outline, thickened mineralisation in drill hole MLJRC679, breccia zone in MLJDD016 and MLJDD031 and depth extensions downdip with a thick 40m thick breccia in MLJRCD826, which is still open to the east with assays pending.
Click here for the full ASX Release
This article includes content from Magnetic Resources NL, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
MAU:AU
Magnetic Resources NL
Overview
Magnetic Resources (ASX:MAU) is an Australian company, developing a portfolio of significant gold projects in the established mining province, Laverton region, in Western Australia.
The company owns a 100-percent interest in the Hawks Nest and Lady Julie projects in Laverton, the Homeward Bound South project in Leonora, and the Benjabbering project in Julimar. The main deposits include Hawks Nest 9 (HN9), Lady Julie Central (LJC), Lady Julie North 4 (LJN4), Mount Jumbo and Homeward Bound South, which are all located in an area with well-endowed regional infrastructure, including three processing plants within 10 to 35 kilometres. These plants are owned by well-known operators including Goldfields Genesis/Dacian; Anglo-Ashanti; and Genesis/Dacian.
The projects’ proximity to these existing processing facilities gives enough options to MAU for toll processing without having to invest millions of dollars in constructing its own processing plant.
Several large deposits such as Wallaby, Sunrise Dam and Jupiter Gold are in this jurisdiction. The company’s projects are adjacent to some of these world-class deposits. The Mt Jumbo and Hawks Nest tenements are only 15 kilometres north of the Wallaby deposit. At both HN9 and Lady Julie, Magnetic Resources had identified multiple thickened stacked lodes near-surface, which have some similarities to Wallaby and Sunrise Dam.
LJN4, a key focus for the Laverton project, hosts thick breccia and silica pyrite zones up to 50 metres thick, which are also prevalent in Anglo Ashanti’s world-class Sunrise Dam deposit, both parallel to near-surface breccia zones and vertical mineralization going downwards into several of their deposits. The Mau breccia zones often carry higher grades and are now being extended by new drilling at depth and further to the east and northeast, potentially growing the LJN4 resource.
In November 2023, the company announced a significant increase in the mineral resource estimates. The deposits in the Laverton and Homeward Bound area have seen a significant 107-percent increase over the last report in February 2023. The updated combined mineral resources estimate for the whole project area stands at 22.7 million tonnes (Mt) @ 1.69 grams per ton (g/t) gold totaling 1.24 million ounces (Moz) of gold at 0.5 g/t cutoff.
LJN4 is now, by far, the largest resource in the project area, as its contained gold rose from 204,000 oz to 852,000 oz, a 317-percent increase. Extension drilling continues and is expected to result in further resource increases.
The significance of LJN4’s gold resource has not gone unnoticed, as research firm Argonaut has called it a ‘sleeping giant,’ noting recent drilling at LJN4 “indicates a significant discovery unfolding in the Laverton region.” If MAU can replicate the recent drilling intercepts, the next resource update at LNJ4 could easily make it a 1-Moz deposit. This will position LJN4 as one of the best undeveloped gold assets in the Laverton region.
Company Highlights
- Magnetic Resources (MAU) is an Australian company focused on gold development projects in Western Australia.
- The company owns a 100-percent-interest in the Hawks Nest and Lady Julie projects in Laverton, the Homeward Bound South project in Leonora, and the Benjabbering project in Julimar.
- MAU’s large tenement positions in the Leonora and Laverton districts of Western Australia, are near numerous large deposits with existing mining operations and good infrastructure.
- The presence of three processing plants close to MAU’s Laverton deposits provides scope for toll processing.
- In November 2023, the company announced a 107-percent increase in the resource estimate for Laverton and Homeward Bound South deposits. The revised resource stands at 22.7 Mt @ 1.69 g/t gold totaling 1.24 Moz of gold at 0.5 g/t cutoff.
- For the Laverton project deposits - Lady Julie North 4,Lady Julie Central and Hawks Nest 9 - early work programs, including project environmental, heritage and technical background studies, are close to completion. The aim is to submit a mining proposal in January 2024.
- In October 2023, the company announced the completion of a AU$4.8-million private placement. The company is now fully funded with AU$7 million cash to aggressively advance to the next stage of development.
- The company’s highly experienced senior leadership team has a proven track record to capitalize on the high resource potential of its projects.
Get access to more exclusive Gold Investing Stock profiles here
An Exciting Gold Development Play in Western Australia
High-Grade Gold Confirmed at Bronzewing South
- Partial results received from the diamond tail of drill-hole BWSRC081 with the visible gold zone returning 15.5g/t Au over 0.48m from 416.5m. This high- grade zone is reported within a broader intercept of:
- 8.95m at 1.32g/t Au from 414m, including:
- 0.48m at 15.5g/t Au from 416.5m; and
- 0.55m at 3.52g/t Au from 422.4m.
- 8.95m at 1.32g/t Au from 414m, including:
- Follow-up drilling along strike from these intercepts is scheduled to commence in the coming days to define the extent of the south-trending zone of gold mineralisation with a diamond tail of drill-hole BWSRCD086.
- Drill results indicate the inadequacy of historical air-core drill testing with a significant search space now open on the boundary with the historical Bronzewing Mining Lease.
- Diamond drilling at the Central Target, located ~1.7km to the south of the Eastern Target and within the same structural corridor, has encountered zones of intense locally massive quartz veining associated with brecciation below historical Hammer gold drilling anomalies of:
- 20m at 1.5g/t Au from 120m in drill-hole BWSRC0037, including:
- 8m at 2.4g/t Au from 120m; and
- 4m at 3.9g/t Au from 120m.1
- 20m at 1.5g/t Au from 120m in drill-hole BWSRC0037, including:
- Assay results from the remaining program will be progressively released in the coming weeks.
Figure 1. Photo of massive quartz carbonate veining intersected in drill-hole BWSRCD082 diamond tail at Hammer’s Central Target Zone (213m to 221.5m).
Hammer’s Managing Director, Daniel Thomas, said:
“The confirmation of high-grade gold mineralisation at Bronzewing South is a significant step in our search for an economically viable gold target at our Yandal Gold Project. High-grade mineralisation can be traced with multiple intercepts to the north of our project area, with the mineralised structure interpreted to extend for hundreds of metres.
“We will now look to test this structure approximately 100m further south on our project area. We are very much looking forward to follow-up drilling at the Eastern Target, as we enter a zone without any previous drilling coverage.
“The team is encouraged by the observations in recent drilling at the Central Target and the potential for this corridor to be connected to the Eastern Target drilling some 1.7km to the north. This corridor is largely untested below the ineffectual air-core drilling and, with a prominent shear zone interpreted to connect these targets, it is of high interest to the team in our search for a significant gold discovery.”
Figure 2. Plan view of the Bronzewing South tenement EPM36/854, showing Bronzewing orebodies on Northern Star Resources mining lease, historical Hammer RC drilling intercepts and the structural corridor of interest containing Hammer’s Central and Eastern Target Zones (refer to ASX announcement 9 November 2020).
Click here for the full ASX Release
This article includes content from Hammer Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
