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Labyrinth Resources Limited (ASX: LRL) (‘Labyrinth’ or ‘the Company’) is pleased to announce that assays received for the first three holes of the maiden surface exploration program at its flagship Labyrinth Gold Project in Quebec, Canada contain high-grade results which extend the mineralisation significantly.
Key Points
- Assays received for first three holes of the maiden surface program at Labyrinth significantly extend the many currently defined lodes at depth and along strike
- Drilling also intersected mineralisation in previously unmodelled zones, indicating potential for substantial increases in scale of the deposit
- The initial outstanding result (reported previously – refer ASX Announcement 25 July 2022) in hole LABS-22-01A, located 125m down-dip of the defined Front-West lode, was:
- 2.2m @ 10.67g/t from 143.5m including 0.5m @ 44.12g/t, part of a broader mineralised interval of 8.1m @ 4.05g/t from 143.5m
- This result is strongly supported by the latest assays, with hole LABS-22-02 delivering an excellent result 375m down-dip of the defined Boucher lode of:
- 1.4m @ 13.32g/t from 652.3m including 0.9m @ 20.53g/t
- Visual quart and pyritic mineralisation observed in LABS-22-04 and LABS-22-05 indicate further down-dip and along strike extensions to existing modelled lodes, with assays pending
- Drilling at Labyrinth remains only shallow compared to other significant projects in the region, which are host to multi-million ounce deposits (refer figure 2)
Figure 1 – Maiden surface exploration targeting mineralisation extensions to depth of up to ~700m below surface
Highlights include 20.53g/t in LABS-22-02, which extends the Boucher lode by a significant 375m down- dip.
This follows the previously reported result of 44.12g/t in LABS-22-01, which was 125m down dip of the currently defined Front-West lode (Refer ASX Announcement 25 July 2022).
Drilling of phase one is now successfully complete, with 3,135m drilled across 5 holes in just 44 days, under budget and with no safety incidents.
Assays are pending for LABS-22-04 and LABS-22-05.
Quartz and pyritic mineralisation characteristic to Labyrinth has been observed across multiple lodes, with results confirming the mineralisation extends up to 375m down dip and to a depth of ~550m below surface, remaining open at depth and along strike.
Labyrinth is on track to publish its maiden JORC Resource next month. These latest assays and those pending will form part of a subsequent Resource update.
Labyrinth Chief Executive Matt Nixon said: “These are outstanding results which highlight the scope for substantial growth in the deposit, both along strike and at depth.
“We are in the throes of finalising our maiden JORC Resource and already we have established substantial mineralisation which sits outside these parameters, paving the way for a subsequent Resource update.
“We have barely scratched the surface at Labyrinth compared with the drilling completed at other major deposits in the Abitibi region. The scale of these endowments shows the upside we have at Labyrinth”.
Click here for the full ASX Release
This article includes content from Labyrinth Resources Limited, 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.
LRL:AU
Orroroo Project Update
- Norfolk engaged Pacific Consultants to build a data base providing for a more model driven approach to further exploration in the expanded tenement package.
- Previously identified gamma anomalies at around 120m depth confirmed reduced sediments (redox environment) developed around this target horizon.
- Structural reinterpretation of the gravity data and phreatic uranium flow model generates new targets.
- Norfolk progressing exploration towards regional approach with focus on broad spaced drilling over possible controlling structures.
Figure 1: Orroroo Project Location Plan
Commenting on Norfolk Metals, Executive Chairman, Ben Phillips, states:
“Norfolk is extremely pleased with the outcomes of Pacific Consultants and our technical team increasing our understanding on the regional prospectivity of the Orroroo Project. The Company expects to conduct a subsequent drilling campaign which must consider all the structurally hosted contributions along with any low cost pre-drilling targeting techniques to be completed prior. We now have additional information to proceed forward with stakeholder engagements and required contractors”
Drill core and drill chips Investigation
Drill core, drill cuttings and muds from holes drilled in the Walloway Basin to the north of Orroroo were recently reviewed at the South Australian (SA) Government core facility in Adelaide.
Figure 2: Spectrometer 153 cps Orroroo 2A reduced sediment margin.
Pacific Consulting was engaged to build a data base providing for a more model driven approach to further exploration across the tenement package. Data incudes drill data from Linc Energy drilling as well as numerous water bores in the district.
A digital data base has been built in Micromine using open file data from the SA Government. A number of water bores and coal exploration holes are located within the Norfolk tenement package. Radiometric logs show a wide spread anomaly in the upper Tertiary at ~ 120m below current surface. The Walloway Coal (lignite) Seam occurs in the lower Tertiary stratigraphy of the basin and is associated with low radiometric anomalism marginal to the lignite.
In borehole Orroroo 2A (Figure 2), the carbonaceous silty clay at ~ 112-114m has an elevated radiometric reading on the margin with oxidized sediments above and below. A clear demonstration that, at least locally, reduced sediments were developed at this target sedimentary horizon and that uranium was deposited on the redox margin. The drill core generally shows large intervals of silt / clayey silt with medium to coarse sand bands now silted up. The current drainage shows a similar and expected pattern in cross section with narrow cobble strewn high energy channels and silty alluvial fans with sandy beds.
The Walloway Basin contains sediment at the base which includes fine-grained sands, clayey sands and clays with minor lignite, of middle to late Eocene age. The overlying sediments include up to 70m of clays with coarse gravel beds, often lenticular. These overlying sediments range in age from mid-Tertiary to Quaternary. Obscuring the Quaternary are older deposits of recent alluvium and outwash material, derived from the surrounding Pre- Cambrian rocks.
While the paleoenvironment has not been reconstructed it can be expected that oxidized groundwater has percolated down gradient into the Walloway Basin carrying uranium which has interacted with either reduced sediments or sediments bearing reduced fluids. The source of the uranium remains uncertain (possibly from the west/northwest), but the coarse (sandy) beds at the target horizon are the clear exploration targets.
Seismic Data
In March 1980, the Department of Mines and Energy South Australia (DME SA) conducted several seismic lines over the Walloway Basin, in particular around the central portion of EL 6552 (Orroroo Project) and the northern portion of EL 6814 (Black Rock Project) (Figure 3).
The purpose of the study was to identify the depth and lithological layers of the Walloway Basin and identify possible structural features that may influence the water intake/flow of the basin.
The results of the seismic survey showed that the Walloway Basin can be divided into different layers based on the different seismic velocities. The layers were then correlated with the lithological units identified in the NFL and Linc Energy drill holes (Figure 4): -
- Quaternary to Recent – Layers 2, 2A and 3
- Upper Tertiary – Layer 3
- Lower Tertiary – Layer 4
- Basement – Layer 5
As confirmed in the drill core and drill chips investigation, Layer 4 (Lower Tertiary unit) consists of interbedded sand, silt and clay which is overlain by Layer 3 (Upper Tertiary), generally thick clay unit. The Lower Tertiary unit predominates and thickens along the deeper troughs of the basin and its sandy nature suggest deposition in a fluviatile environment. The overlying Upper Tertiary unit is a more extensive and continuous unit of grey, brown and black clay, with kaolinite bands indicating deposition in a lacustrine environment.
The general shape of the valley is asymmetrical with western margins steeper than east and bedrock depth up to 350m deep at the observed deepest point on line WB-79-1.
Several sections were constructed from the seismic survey but the two main seismic section lines WB-79-1 and WB-79-2 coincides with the drilling conducted by NFL along the Walloway Creek and Rankin Rd Targets respectively (see ASX announcement: 7 February 2024).
Figure 3: Seismic Survey DME SA March 1980
It was also noted from the seismic study that structurally, the Walloway Basin is fault controlled to the west and the major northwest-southeast fault identified to the east may be a zone of diapiric activity. These faults have also been observed in the interpretation of the regional gravity data.
It is important to note that historical water well drill holes have been included in the seismic sections but no data has been sighted on the public domain database of the DME SA.
Click here for the full ASX Release
This article includes content from Norfolk 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.
Rua Gold
Investor Insight
Rua Gold offers a compelling investment opportunity driven by its highly promising gold assets in New Zealand’s historic gold-producing regions, and supported by the government’s renewed focus on fast tracking economic growth.
Overview
Rua Gold (TSXV:RUA,OTC:NZAUF,WKN:A4010V,OTCQB:NZAUF) is a gold exploration company focused on two prolific, historic gold-producing regions in New Zealand: Hauraki Goldfield and Reefton Goldfield. Both these regions boast of previous high-grade gold production, with more than 15 million ounces (Moz) produced in the Hauraki district and over 2 Moz in the Reefton Goldfield. New Zealand is a tier 1 mining jurisdiction with highly prospective geology, and a skilled workforce. The new government of New Zealand has committed to promoting economic growth through mining- and business-friendly policies, such as the Fast Track Approval Bill, which proposes quicker approval timelines for a range of projects, including mining.
New Zealand has a rich history of gold production from orogenic deposits (+9 Moz), epithermal sources (+15 Moz), and alluvial deposits (+22 Moz). The country has low sovereign risk with no corruption, making it an attractive destination for mining investment.
The company has launched a fully funded exploration program at its properties. This includes a 2,500-meter diamond drill program focused on the Pactolus prospect at Reefton Goldfield.
Pactolus has returned assays for three of six holes drilled on the system, with hole DD_PAC_035 intersecting 2 meters @ 5.13 grams per ton (g/t) gold. Additional work is required to accurately model this zone's geometry before proceeding with further drilling at this prospect. Consequently, the company anticipates redirecting its focus towards the previously productive areas in Reefton in the near future, which includes the Murray Creek, Crushington, Capleston and Caledonian historic districts. These historic mines collectively produced ~700 koz at 25.2 g/t within a radius of ~20 kms.
The company has applied for a minimum impact access agreement with the New Zealand Department of Conservation for the Glamorgan project. Once granted, the company will commence an exploration program that includes soil sampling, magnetic and resistivity geophysical surveys, and geological mapping.
Rua Gold benefits from a team of professionals boasting extensive expertise in geology and mining. The company’s board of directors is led by Oliver Lennox-King (Fronteer, Roxgold), who has a successful track record developing projects and companies.
Company Highlights
- Rua Gold is a gold exploration company with two highly prospective land packages in New Zealand’s historic gold districts – Hauraki Goldfield and Reefton Goldfield.
- New Zealand is a tier 1 mining jurisdiction boasting highly promising geological formations and a significant history of gold production, with orogenic deposits (+9 Moz), epithermal sources (+15 Moz), and alluvial deposits (+22 Moz).
- The company’s two key assets include the Reefton Goldfield on New Zealand’s South Island and Glamorgan on New Zealand’s North Island.
- The new government is focused on stimulating economic growth, as evidenced by the recent Fast Track Approval Bill, which proposes fast-track approvals for a range of projects, including mining.
- Rua Gold has high-quality orogenic and epithermal gold prospects, boasting historical production grades ranging from 16 to 50 g/t gold.
- Rua Gold is fully permitted and fully financed with significant near-term catalysts. The company has launched an exploration program at its two properties. Drilling is ongoing at the company’s properties in the Reefton district.
- Proposed acquisition of Reefton Resources Pty Limited was approved by the shareholders of Siren Gold (ASX:SNG). Reefton is a 100 percent owned subsidiary of Siren, with tenements located adjacent to the Rua Gold’s suite of properties in New Zealand’s prolific Reefton Goldfield.
- A seasoned board and management team is at the helm of Rua Gold, with extensive regional knowledge and a proven track record of successful discoveries. With full financing and permits in place, the company is well-positioned to capitalize on growth prospects.
Key Projects
Reefton Goldfield
Rua Gold holds six project areas at the Reefton Goldfield – Northern, Capleston, Murray Creek, Ajax, Crushington and Southern. The Reefton district has a rich history of gold production with over 2 Moz of gold recovered at 24.5 g/t. Among the noteworthy findings from recent years of exploration is the greenfield discovery of the Pactolus quartz vein. Sampling and assays conducted thus far have unveiled significant concentrations of high-grade gold in this vein.
Pactolus: Pactolus is a new surface greenfield discovery made by Rua Gold in 2021. Pactolus has returned assays for three of six holes drilled on the system, with hole DD_PAC_035 intersecting 2 meters @ 5.13 g/t gold and hole DD_PAC_036 intersecting 2 meters @ 3.61 g/t gold.
Initial findings and observations validate the southern extension of the Pactolus system by 550 meters, showcasing substantial mineralization at surface. However, accurately determining the plunge and quality of the ore shoots presents a challenge. An additional update is expected upon receipt of results from the remaining drill holes.
Murray Creek prospects: Rua Gold’s systematic exploration has highlighted the potential for the rejuvenation of this district in renewed opportunities around the historic high-grade gold deposits. Rua Gold completed an extensive assessment of the historical mines situated within the company's tenements in the Reefton Goldfield, yielding five targets in the Murray Creek area.
Ongoing drill campaign at the Murray Creek prospects intersected visible gold and confirmed downhole continuity of high-grade gold mineralization.Glamorgan Project
The Glamorgan project comprises over 4,600 hectares in the Hauraki district on New Zealand’s North Island. Hauraki boasts of a substantial presence of high-grade gold and silver mining, with approximately 50 epithermal deposits mined since the 1860s. These deposits have yielded over 15 Moz of gold and 60 Moz of silver. Glamorgan has a 3.8 km zone displaying indications of gold mineralization, backed by soil and rock samples, suggesting the presence of an epithermal gold mineralized system at the property.
Glamorgan is located 2.8 kms north of Oceana Gold’s recent significant discovery at Wharekirauponga. The company has applied for a minimum impact access agreement with the New Zealand Department of Conservation. Once granted, the company will commence an exploration program that includes soil sampling, magnetic and resistivity geophysical surveys, and geological mapping.
After receiving a minimum impact access agreement (MIA) from the Department of Conservation for the Glamorgan project, the company has mobilized an exploration team that has made progress in collecting 2,000 of the planned 3,000 soil sample program; completing the first full phase of UAV drone magnetic geophysical surveying; and commencing ground geological mapping.
Based on initial surface soil geochemistry, interpreted geophysical structures, and geological mapping, there is preliminary evidence that the Glamorgan project has the hallmarks of a significant epithermal gold system, with surface features similar to the adjacent WKP gold deposit. Rua Gold will design a drill program and apply for a full access agreement by the end of the year to commence drilling.
Management Team
Oliver Lennox-King – Non-executive Chairman
Oliver Lennox-King boasts a distinguished and extensive career within the mineral resource sector, encompassing a broad experience in financing, research and marketing. Since 1992, he has occupied senior executive and board roles in various junior exploration and mining enterprises. Most recently, Lennox-King was the chairman of Roxgold from 2012 until July 2021 when it was sold for $1.2 billion to Fortuna. In addition to Roxgold, he also served as chairman of other notable firms, including Pangea Goldfields, Aurora Uranium and Fronteer Gold.
Robert Eckford – CEO and Director
Robert Eckford is a certified professional accountant with significant expertise in mergers and acquisitions, accounting, finance and commercial management within the mining sector. Most recently he was co-founder and head of finance for Aris Mining, and prior to that, has worked with international mining companies, including Barrick Gold, Yamana Gold and Leagold Mining.
Simon Henderson – COO and Director
Simon Henderson is an exploration specialist and has over 40 years of experience, most of which is in New Zealand. He was part of the discovery team for several significant gold finds in New Zealand, such as Wharekirauponga. He maintains robust connections with key local stakeholders and the country's permitting authorities.
Zeenat Lokhandwala – CFO and Corporate Secretary
Zeenat Lokhandwala brings over a decade of expertise in mergers and acquisitions, finance, accounting and taxation. She is the former CFO of Great Bear Royalties and director of finance at Great Bear Resources.
Brian Rodan - Director
Brian Rodan has more than 43 years of experience who is currently serving as Fellow of the Australian Institute of Mining and Metallurgy. Rodan is the founding director of Dacian Gold (ASX:DCN)
Mario Vetro - Director
Mario Vetro has extensive experience structuring and providing guidance to resource companies. He is the co-founder of K92 Mining and the proprietor of Commodity Partners.
Paul Criddle - Director
Paul Criddle has extensive experience constructing and overseeing gold mines in Australia and West Africa. He was formerly a chief operating officer for West Africa at Fortuna and also served as the COO for Azimuth and Perseus. He was previously the managing director at Matador Mining.
Tyron Breytenbach – Director
Tyron Breytenbach is a geologist with operational and capital markets experience. He is currently the CEO of Lithium Africa Resources. Previously, he was senior vice-president of Capital Markets at Aris Mining and served as managing director at Cormark Securities. Before transitioning to capital markets, Breytenbach spent a decade in the mining sector as a geologist, focusing on orogenic and epithermal gold deposits and specializing in resource estimation. He earned his BSc (Honours) degree from Rand Afrikaans University in South Africa and is a designated professional geologist in Ontario.
