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Key activities for Brightstar Resources Limited (Brightstar or the Company) (ASX: BTR) during the March Quarter are outlined below.
Highlights:
- Brightstar makes recommended takeover offer for Linden Gold Alliance Limited
- Successful completion of A$12 million share placement
- A highly positive Scoping Study was released for the Jasper Hills Gold Project (owned by Linden Gold) with compelling operational and financial outputs1,4:
- An initial mine production target of 142koz @ 1.84g/t Au over a four-year life of mine
- Pre-Tax NPV8 of approximately A$99 million and IRR of 736% (@ A$3,000/oz gold price)
- Payback of 9 months on all pre-production capital costs of $12 million
- Selkirk mining joint venture and gold pours successfully completed, with finalised net cashflow generated to Brightstar of $6,500,000 to be received this quarter
- Cork Tree Well diamond drilling results returns spectacular intercepts including:
- 27.6m @ 17.8 g/t Au (CTWMET003)
- 34.4m @ 7.94g/t Au (CTWMET004)
- High grade RC drilling intercepts were received from Menzies Gold Project at the Aspacia & Link Zone deposits
Brightstar to acquire Linden Gold Alliance Limited, $12 million share placement and Board Change1,2,3
- Brightstar Resources Limited to acquire Linden Gold Alliance Limited (Linden) via unanimously recommended off-market scrip takeover offer (Offer)
- Linden is a gold producer, developer and explorer with existing mineral resources of 350koz @ 2.1g/t Au near Brightstar’s existing processing infrastructure (on care & maintenance) in the Laverton district (Figure 1)
- Under the Offer, Linden securityholders are to receive 6.9 Brightstar shares for every 1 Linden share held and 6.9 Brightstar options for every 1 Linden option held, equating to an implied Offer price of 11.04 cents per share
- The Offer implies an undiluted equity value for Linden of approximately $23.7 million
- Linden’s Directors unanimously recommend Linden shareholders accept the Offer, in the absence of a superior proposal
- Linden Directors representing 13.2% and Linden’s major shareholders, including St Barbara Limited (St Barbara), representing approximately 67.3% of shareholders, have signed pre-bid agreements with Brightstar or have signed intention statements to accept the Offer in respect of all current Linden shares and Linden options they own and control, in each case in the absence of a superior proposal
- The Offer is subject to conditions including a minimum 90% acceptance condition by the Linden shareholders and Linden optionholders
- As part of the Offer, Brightstar announced the successful receipt of firm commitments for a capital raising of A$12.0 million at A$0.014 per share via a two-tranche placement (Placement)
- The Placement received strong cornerstone support from Brightstar and Linden’s major shareholders Collins Street Asset Management and St Barbara for a total $4.3 million
- Mining investment house Lion Selection Group (ASX:LSX) committed to $2 million in the Placement to become a Brightstar shareholder
- Linden Directors Andrew Rich and Ashley Fraser to be appointed as Executive Director and Non- Executive Director respectively of Brightstar at successful completion of the Offer
- Highly regarded natural resources industry professional Richard Crookes will join the Board of Directors as Independent Non-Executive Chairman subject to the successful completion of the Offer.
- The combination of Linden and Brightstar will create a gold producer and developer with a material resource base that supports the Company’s strategy of becoming a mid-tier gold producer
Figure 1: Linden Gold’s Second Fortune & Jasper Hill Gold Projects relative to Brightstar assets
Compelling Scoping Study for Jasper Hills Gold Project4
The Jasper Hills Gold Project (Jasper Hills) is wholly owned by Linden, which is the subject of a Board- recommended off-market takeover offer by Brightstar. Jasper Hills is located 50km SE of Brightstar’s processing infrastructure, and will, subject to final feasibility studies, permitting and approvals and final investment decision, support Brightstar’s ambition of becoming a meaningful WA gold producer.
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This article includes content from Brightstar Resources, 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.
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Brightstar Resources
Overview
The price of gold is nearing a record high. Earlier this year, it topped $2,041.30 per ounce — the second-highest value in history. And there is every indication the previous metal's value will only continue to climb.
The reason is multifaceted. The world teeters on the brink of a severe recession. Amidst ballooning interest rates, bank failures and falling bond yields, demand for gold continues to rise.
This is to be expected, as bullion almost always becomes a hot commodity during times of economic uncertainty. At this precise moment, gold is simultaneously an excellent portfolio diversifier and a compelling hedge against ongoing inflation — particularly if one invests in the right company.
Brightstar Resources (ASX:BTR) aims to be that company. An emerging mining and development company, Brightstar occupies a strategic land position of roughly 300 square kilometers in the Laverton Tectonic Belt and 140 square kilometers of the Menzies Shear Zone.
The company also owns an existing processing facility that can potentially provide tremendous shareholder value in a low-capital cost restart scenario. In fact, Brightstar has engaged experts for a scoping study to assess the refurbishment of its wholly owned onsite processing plant.
That plant, once fully refurbished and operational, could prove a key differentiator for the company, enabling fast gold production at a low capital cost. This is especially noteworthy given that many other gold companies trading on the ASX are largely focused on greenfield exploration and development. Even once those companies discover a promising resource, mining and processing facilities would still need to be built, undertakings which can incur significant upfront capital costs and take a number of years.
Brightstar also recently finalized a merger agreement with Kingwest Resources (ASX:KWR), under which Brightstar acquired 100 percent of the shares in Kingwest. From a strategic standpoint, this merger has allowed the two companies to consolidate their assets, resulting in combined JORC mineral resources of roughly 1 million ounces, all on granted mining leases.
The strategic merger also allows Brightstar to accelerate development and expansion of its existing mineral resources while also establishing the company as a potential near-term developer.
Brightstar's Laverton Gold Project assets are all centered on a 100%-owned 300-square-kilometer tenure in the Laverton Tectonic Zone and all within 70 kilometers of the Laverton Processing Plant. Additionally, all resources within this zone are open along strike and at depth. Only minor drilling programs have been conducted in recent years, paving the way for significant exploration upside with the potential for further regional and greenfields discoveries.
Brightstar also owns 100% of the Menzies Gold Project, a contiguous land package of granted mining leases over a strike length of roughly 15 kilometers along the Menzies Shear Zone and adjacent to the Goldfields Highway.
Company Highlights
- Brightstar Resources is an emerging ASX-listed mining and development company with more than one million ounces of gold resources and potential on-site processing infrastructure.
- The company has engaged experts to conduct a scoping study of its processing infrastructure with the goal of refurbishing and potentially expanding it.
- Once refurbished, this infrastructure will allow Brightstar to fill a growing investment void for near-term gold developers in Western Australia, producing large quantities of gold at low capital cost.
- Brightstar's mineral assets are situated across roughly 300 square kilometers of 100-percent-owned land in the Laverton Tectonic Zone. Together, they account for a current total JORC Resource of more than a million ounces.
- Brightstar’s Menzies Gold Project is a highly promising asset which has already undergone extensive historic mining and development. The Menzies Gold Project's total current resource estimate is 11.7 Mt @1.33 g/t gold for 505koz gold (40 percent measured and indicated; 60 percent inferred)
- Brightstar plans to continue generating shareholder value through a combination of development and strategic acquisitions along with some exploration.
Key Projects
Brightstar Processing Facility
Situated close to Brightstar's existing mineral assets at Laverton, the Brightstar Processing Plant provides the company with a considerable operational head start over its peers. The 485 kilo-tons per annum carbon-in-leach plant is currently on care and maintenance. Brightstar is assessing a refurbishment and expansion strategy for the plant, building on a 2021 report from Cosmo Engineers.
Highlights:
- Extensive Infrastructure: Current facilities at the plant include two ball mills, a power station and gravity and elution circuits. Other infrastructure includes:
- A tailings storage dam
- An on-site process water pond
- An operational 60-person accommodation camp
- An airstrip at the nearby Cork Tree Well Project
- Vehicles and equipment including a forklift, bobcat, two loaders, multiple light vehicles and a 30-tonne crane.
- A Leg Up Over Competitors: The presence of pre-existing processing infrastructure represents significant time savings compared to greenfields development.
- Low Upfront Capital Cost: A 2021 report from Cosmo Engineers showed that fully refurbishing the plant to a 650-ktpa throughput represents a capital cost of roughly $5.5 million, including $1.9 million in owner's costs and a 30 percent contingency.
- Further Expansion: In June 2023, Brightstar announced that it has engaged a team of independent experts to conduct a scoping study which will assess refurbishment requirements and expansion opportunities.
- Close to Existing Assets: Brightstar's three major development projects — Cork Tree Well, Beta and Alpha — are all in close proximity to the plant.
Cork Tree Well
Cork Tree Well is a former operating mine, producing 45 koz of gold over its lifespan. Located roughly 35 kilometers north of Laverton on Bandya Station Road, the project’s JORC 2012-compliant mineral resource of 5,610 kilotons (kt) at 1.4 g/t for 252 koz of gold has increased by 20 percent to 303 koz, delivering a combined JORC Resource base of 1.02 million ounces gold from the Laverton and Menzies gold projects.
Highlights:
- Promising Drilling Results: Two 6,000-meter drill programs were completed in late 2022, and in the first quarter of 2023 delivered an uplift in tonnages and ounces at a discovery cost of AU$30 per ounce. The JORC 2012 Mineral Resource Estimate increased by 20 percent to 303 koz delivering a combined JORC Resource base of 1.02 million ounces of gold and representing a 65-percent increase to the indicated ounces to 157 koz @ 1.6g/t gold. These results further provide a more robust base for mining scoping studies.
- Upcoming Feasibility Studies: The drilling program will underpin several feasibility studies that Brightstar intends to conduct later this year. At present, Brightstar has defined a resource envelope over a strike length of approximately 1 kilometer and down to 200 meters.
- Area Geology: The Cork Tree deposit is situated along the western limb of the Erlistoun synclical structure, a sequence which includes mafic volcanic lavas, tuffs and tuffaceous sediments alongside minor interflow graphitic shales and banded iron formation. The mine itself consists of chlorite schist-altered high-magnesium basalt footwalls overlain by graphitic shales containing banded iron and chert beds. Gold mineralization is contained within sediments intruded by concordant porphyry sills spanning the length of the mineralized zone.
Menzies Gold Project
Situated 130 kilometers north of the globally significant Kalgoorlie gold deposit, Menzies represents one of Western Australia's leading historic gold fields. The project, fully owned and operated by Kingwest prior to its merger with Brightstar, consists of a contiguous land package of a strike length in excess of 15 kilometers. All deposits are now 100-percent-owned by Brightstar and lie within granted mining leases.
Brightstar intends to leverage its processing infrastructure to monetise the high-grade open pit ounces produced by this mine.
Highlights:
- Significant Historical Production: Menzies has hosted multiple historically mined high-grade gold deposits which together produced a total of over 800,000 ounces at 19 g/t gold. This includes 643,000 oz @ 22.5 g/t gold from underground.
- Profit Sharing: Brightstar and BLM Ventures have a 50/50 profit-sharing joint venture agreement to exploit the Selkirk deposit at Menzies. Under this agreement, Brightstar is responsible for capital costs, mining and haulage. The joint venture also has a toll treating agreement with St Barbara Limited (ASX:SBM) to process ore from Selkirk at Leonora.
- Area Geology: The Menzies Gold Project is hosted along the Menzies Shear Zone in the western margin of the Menzies greenstone belt. It displays a geologic setting similar to the Sand Queen Gold Mine at Comet Vale.
LAVERTON GOLD PROJECT – OTHER RESOURCES
Beta
Located immediately adjacent to the Brightstar Plant, the Beta Project includes a 60-person camp. It contains a combined JORC 2012-compliant mineral resource of 1,882 kt at 1.7 g/t for 102 koz of gold. The deposit occurs along the Eastern Margin of the Laverton Tectonic Zone, notable for hosting multiple major gold occurrences including Granny Smith, Keringal, Red October and Sunrise Dam.
Alpha
Hosting a combined JORC 2012-compliant mineral resource of 1,452 gold at 2.3 g/t for 106 koz, the Alpha Project. Future exploration programs and feasibility studies will seek to potentially capitalize on Alpha's close proximity to Beta.
Management Team
Alex Rovira - Managing Director
Alex Rovira holds a Bachelor of Science (geology) and Bachelor of Commerce (corporate finance) from the University of Western Australia, and for the past nine years has been working as an investment banker at a global financial services company that focused on the metals and mining sector.
Greg Bittar – Non-Executive Chairman
Greg has extensive experience in public and private markets mergers and acquisitions, capital markets and strategic advisory assignments across a range of sectors including general industries, metals and mining, mining services and energy.
Jonathan Downes - Non-executive Director
Jonathan Downes has more than 25 years’ experience in the mining industry and has worked in various geological and corporate capacities. He has worked with nickel, gold and base metals and has also been intimately involved with numerous private and public capital raisings.
Josh Hunt - Non-executive Director
Josh Hunt is an experienced capital markets and M&A lawyer and has extensive experience in all aspects of mining and energy project acquisitions and disposals and general mining legislation compliance throughout Australia. Hunt has advised on numerous IPOs, fundraisings, and acquisitions by both public and private companies on the ASX and internationally. He will assist the Brightstar board with corporate governance, company law and capital market management going forward.
Tony Lau - Non-executive Director
Tony Lau is currently the chief financial officer of Stone Group Holdings based in Hong Kong. Lau has worked at PricewaterhouseCoopers Hong Kong for 12 years. Over the past two decades, he has been advising numerous Chinese companies on IPOs and capital raising in the Hong Kong capital market and investing in the mining industry in Australia.
Binding 200kt Toll Milling Agreement Executed with FMR Investments
HIGHLIGHTS
- Binding TMA has been executed with FMR, which owns the Greenfields Mill located northeast of Coolgardie and 30km southwest of Kalgoorlie-Boulder in WA
- Horizon will arrange contract mining and hauling of ore from Cannon for ore processing at FMR’s 1.0Mtpa Greenfields Mill, located ~67km by road from the Cannon Project
- An agreed 200kt of ore will be processed over a period of eight months, commencing in the December 2024 Quarter
- The TMA contains competitive ore treatment rates with the payment structure as follows:
- Horizon is responsible for delivery of each stockpile to the Greenfields Mill ROM near Coolgardie
- Payment of processing costs must be made before the value of the processed and refined gold at the Perth Mint is transferred from FMR’s metal account to Horizon
- If the delivery schedule is missed Horizon will forfeit its allocated tonnes for that month and from the overall 200kt allocation
- An Ore Reserve for Cannon has already been established including forecast economics for the ore to be processed via a Toll Milling Agreement 1
- Cannon is fully environmentally permitted (with last mining in 2017) with pre-production activities are already underway, including dewatering of the open pit in preparation for underground mining
- The TMA has flexibility that Horizon can treat Horizon ore other than Cannon, including Horizon’s own current resources or those acquired through the proposed merger with Greenstone Resources Limited, provided sufficient notice is provided to FMR
Commenting on the toll milling agreement, Chief Executive Officer Mr Grant Haywood said: 2
“We are very pleased to have converted our 200,000 tonne allocation with FMR into a formal Toll Milling Agreement, and look forward to working closely with them as ore deliveries will commence later this calendar year. This agreement is in addition to our 1.4Mt ore sale agreement with Paddington announced a week ago. Together this will see us generating cash flow from two fronts in this fantastic gold price environment before the end of 2024.”
Figure 1: Horizon’s project locations, regional geology and surrounding infrastructure
Next Steps 1
- AMC Consultants has been engaged and undertaken a review of the Cannon Ore Reserve and will progress the revised key financial outcomes for the June 2024 Quarter
- Finalise engagement with underground mining and haulage contractors to finalise tenders for Cannon
- Complete the proposed merger with Greenstone Resources to enhance the long-term production profile with development ready high-grade projects
Click here for the full ASX Release
This article includes content from Horizon Minerals 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.
Statement of Executive Compensation - 2023
The following information is provided as required under Form 51-102F6 for Non-Venture Issuers, as that term is defined in National Instrument 51-102 – Continuous Disclosure Obligations for the financial year ended December 31, 2023. The Company reports its financial statements in United States dollars. Unless otherwise noted, all compensation described in this statement is awarded to, earned by, paid to, or payable to an NEO in either Canadian dollars or Australian dollars. Unless otherwise noted, all compensation amounts have been converted into United States dollars at the following Bank of Canada annual average rates.
All references to “C$”, “$” or “dollars” in this Statement of Executive Compensation refer to Canadian dollars unless otherwise indicated. References to “US$” or “U.S. dollars” refer to United States dollars. References to “A$” refers to Australian dollars.
Compensation Discussion and Analysis
The following compensation discussion and analysis provides insight into the compensation that the Company provided to its Chief Executive Officer, Chief Financial Officer and the three most highly compensated executive officers of the Company (the “NEOs”) for the year ended December 31, 2023 (the “2023 Fiscal Year”). For the 2023 Fiscal Year, the Company had the following NEOs: (i) Andrew Dinning, CEO; (ii) Lui Evangelista, CFO; (iii) Paul Schmiede, Vice President – Corporate Development; and (iv) Jack Hamilton, Vice President – Exploration.
During the 2023 Fiscal Year, the Company focused on completing a Preliminary Economic Assessment (“PEA”) on its Sanutura project in Burkina Faso (the “Project”), until the PEA was suspended in September 2023 due to the illegal withdrawal of the Company’s rights to the 100% owned Tankoro 2 Exploration Permit (the “Permit”) by the Government of Burkina Faso. Subsequently, the Company’s exploration activities were reduced to administrative and compliance requirements and exploration field camps were placed on care and maintenance.
Advancement of the Sanutura Project
In early 2023, the Company completed internal assessment work evaluating various project sizes, configurations and throughput rates, and staging the development of the Project. As a result of this work, the Company decided to undertake a PEA to evaluate accelerating the Project via a staged approach, commencing with a mid-sized mine development established using high-grade, free-milling oxide material, followed by successive upgrades and expansions to deliver a long life, high return project. The Company’s approach had been to optimise the Project to facilitate development funding, focusing on the payback period, minimising upfront capital and structuring the Project to generate cash flows as soon as practicably possible. Open pit mining was focused on bringing value forward and was being scheduled accordingly while underground mining was being scheduled to augment grade requirements later in the mine life. The PEA was scheduled for completion in September 2023.
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This article includes content from Sarama Resources, 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.
Further High-Grade Gold Success at Ricciardo
HIGHLIGHTS:
GOLDEN RANGE
- Assay results for the remaining (3) RC holes drilled at the Ricciardo deposit have been received, with all holes intersecting significant gold intervals including:
- 4m @ 14.49 g/t Au from 188m, ending in mineralisation (RDRC039)
- 12m @ 1.91 g/t Au from 74m, ending in mineralisation (RDRC040)
- 7m @ 1.17 g/t Au from 119m (RDRC038)
- Results continue to increase the known extent of the high-grade shoot beneath the historic Ardmore pit.
- Drilling demonstrates significant additional mineralisation outside the current Mineral Resource model, with mineralisation remaining open at depth.
- These results build on the high-grade results already released for the Ricciardo deposit.
- Ricciardo sits in the middle of the 25km-long ‘Golden Corridor’ at Golden Range, which hosts six discrete deposits (18 historic pits) that are all open at depth and possess immediate growth potential.
- The ‘Golden Corridor’ is Warriedar’s key exploration focus in 2024, with further growth-focussed RC drilling set to commence in the next week.
FIELDS FIND
- Results from drilling at Rothschild continue to extend mineralisation along strike to the east (and remains open).
- New greenfields gold zone intersected at Provenance, located approx. 700m north of the Rothschild deposit.
Today’s results extend the high-grade shoot below the Ardmore pit and broaden the mineralisation envelope. Drilling continues to demonstrate the outstanding Mineral Resource growth potential that exists at Ricciardo and along the broader ‘Golden Corridor’ trend.
Assay results from drilling carried out at the Fields Find Project late last calendar year have also been received. Drilling at Fields Find successfully extended Rothschild to the east and highlighted a new greenfields discovery at the Provenance prospect (approximately 700m north of Rothschild).
Figure 1: The Golden Range and Fields Find Projects Mines and projects within trucking distance of the Warriedar tenure are shown. The location of the Ricciardo deposit within the 25km-long ‘Golden Corridor’ at the Golden Range Project is annotated.
Robust high-grade depth extensions continue at Ricciardo
The Ricciardo gold system (within the Golden Range Project) spans a strike length of approximately 2.3km, with very limited drilling having been undertaken below 100m depth. Ricciardo possesses a current Mineral Resource Estimate (MRE) of 8.7 Mt @ 1.7 g/t Au for 476 koz gold.1 The oxide material at Ricciardo has been mined by previous operators.
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This article includes content from Warriedar 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.
Rua Gold: An Emerging Gold Explorer in New Zealand’s Historical Goldfields
Rua Gold (CSE:RUA,OTC:NZAUF,WKN:A4010V) focuses on the Hauraki Goldfield and Reefton Goldfield - two prolific, historic gold-producing regions in New Zealand boasting previous high-grade gold production. 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.
Rua Gold has launched a fully funded exploration program at its properties which 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.
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 already ongoing at the company’s properties in the Reefton district.
- 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.
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LJN4 Continues to Deliver with the Deepest Intersection at 650m Down Dip
- After a significant intersection of 16m at 4.51g/t from 411m within MLJDD033, which was a very large 200m step out below the current resource (Figures 1 and 4) a further seven deeper diamond holes totalling 2,354m holes averaging 336m were drilled to ascertain the depth continuity in other parts of the LJN4 Deposit. Some compelling intersections are outlined below.
- MLJDD039 has the deepest intersection to date of 28m at 1.19g/t from 432m including 7m at 2.57g/t from 432m and is 100m down dip of MLJDD033 which intersected 25m at 3.01g/t from 408m and includes 16m at 4.51g/t from 411m. These intersections (Figure 1) are part of a 650m down dip, 45-degree mineralised zone, which is the longest so far within the 750m long LJN4 deposit.
- In the northern part of LJN4 there is a strong green fuchsite-silica-pyrite alteration within the ultramafic. Drill holes MLJDD040 intersected 7m at 4.73g/t from 380m (Figure 2 ) and contained silicified ultramafic with fuchsite and quartz veins. This intersection is 100m down dip of MLJRCD829 which intersected 17m at 2.31g/t from 287m which includes 7m at 4.22g/t from 292m (which is also intensely fuchsite altered with quartz veins). The extend of this down dip zone is 450m and is still open at depth.
- This ultramafic alteration is much more prevalent and occurs within the 350m long northern part of LJN4 (Figure 3) and is also present in holes MLJDD044 (from 376-396m), MLJDD045 (from 313-350m) and MLDD051 (from 313-340m), which have assays pending. The central and northern parts of LJN4 are still open at depth and there is a suggestion that the zones plunge to the SE (Figure 3).
- These intersections in MLJDD039 and 40 are far below the open pit from our PFS study (ASX release 7 March 2024) and are also not included in our current resource, this augers well for the enlargement of the resource, increasing both the potential size of the open pit and the accompanying positive economic studies.
- MLRDD036 intersected 18.9m at 2.26 g/t from 275M within a 21m zone, which is a 40m step out down dip from MLJRCD807 which intersected 15.2m at 1.79g/t from 287m (Figure 4).
- As described in the 5 March 2024 ASX release there was a 7.7% increase in overall resource in the Laverton Project to 24.9Mt @1.66g/t totalling 1.33moz of gold at 0.5g/t cut off and LJN4 has increased 11% to 948,200 oz (Table 1).
- It is particularly interesting that we have 8 stacked lodes in the central part of LJN4 and we have one planned 600m hole that will be testing for stacked lodes beneath the current mineralised stacked lodes.
- A number of deeper step out holes have now been carried out to see whether the LJN4 resource appears to extend further at depth and there are assays pending for 7 diamond drillholes totalling 1980m averaging 396m and include MLJDD042-46, 48, 50, 51) and 14 RC drillholes totalling 946m (MLJRC839-859). In addition, there are 6 holes being drilled in this current programme totalling 2800m and averaging 466m and are expected to be completed by the end of May 2024 with three diamond rigs operating.
The central and northern part of the 750m long LJN4 deposit has been drilled with very promising results. Highlights of this drilling are shown in Table 4, Figures 1-4.
Figure 1. Composite section for LJN4 central area showing high-grade dipping gold zone containing resource model outline and MLJDD039 being a down dip extension of over 100m from MLJDD033and being part of a very large 650m interpreted down dip mineralised zone.
Figure 2. Cross section for LJN4 northern area showing high-grade dipping gold zone containing resource model outline and MLJDD040 being a down dip extension of over 100m with intense fuchsite alteration.
Figure 3. Composite Inclined Longitudinal Projection of LJN4 in gram-metres. Highlighting continuous mineralisation over the whole 750m length, being open at depth in the central area and suggesting a SE plunging zone. New drilled holes awaiting assays (in blue) and further planned holes (in yellow).
Figure 4. The Lady Julie North 4 deposit has numerous significant thick intersections from the latest drill programme (yellow large rectangular label) and previous drilling (white label) with maximum gold projected to surface and planned deeper drillholes (in yellow).
The follow up deeper diamond holes have tested and are looking to extend up to two and in some cases eight, stacked lodes mainly found in the central parts of LJN4. Hole MLJDD053 is a 600m deep hole and is designed to investigate for further stacked lodes below the current bottom stacked lode. Many of these are outside the existing resource and have potential for the enlargement of the LJN4 (Indicated and Inferred) of 15.4mt at 1.92g/t for 948,200oz at a 0.5g/t cutoff (Table 1).
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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.
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