Comet Vale Gold Project, WA: New Drilling Program To Expand Known High-Grade Mineralisation

Labyrinth Resources Limited (‘the Company’ or ‘Labyrinth’) (ASX: LRL) is pleased to advise that it is ramping up exploration at its Comet Vale gold-copper-nickel project in Western Australia and Labyrinth Gold Project in Canada.

Key Points

• Programme of Work approved for drilling on the M29/52 tenement at Comet Vale
  
• Drill rigs expected to mobilise in next six weeks
• Independent consultants preparing updated JORC 2012 Mineral Resource Estimate for Sovereign gold trend at Comet Vale, expected to be completed in current quarter
• At Labyrinth Gold Project in Canada, the drilling design for phase two Resource growth program is complete, paving way for tender submissions to commence

Figure 1 Comet Vale Project location map

Both exploration programs are aimed at creating value for shareholders by testing the known extents and growing the Resources at the respective projects.

The Comet Vale drilling program is the first genuine surface exploration undertaken at the project for 15 years. This is despite the project hosting extensive high-grade gold and copper mineralisation and strong evidence of nickel laterite.

Labyrinth has recently completed a full review of the geology and known mineralisation and carried out an initial phase of on ground mapping. This process highlighted the significant potential but under-explored nature of the project.

Work during the current exploration phase will include an updated JORC 2012 mineral resource estimate (‘MRE’) for the Sovereign trend gold system which includes the Sand Queen, Sand Prince and Princess Grace lodes, with the existing MRE reflecting work completed in 2011 under the NI43-101 instrument and adapted to JORC 2012 in 2018 without any significant exploration works conducted.

To support the MRE, a 1,500m reverse circulation drill program will be conducted to test for extensions to the known lodes as well as gathering important geotechnical data.

Labyrinth Chief Executive Matt Nixon said: “We are about to embark on two significant exploration programs, both of which are aimed at extending known high-grade gold mineralisation.

“This drilling has the potential to create substantial value for shareholders because we are testing for extensions to known lodes and infill drilling in areas outside of the current Resource where we know there is a strong prospect of mineralisation”.

Comet Vale

Comet Vale is on the eastern limb of a regional-scale, north-south trending anticline: the Goongarrie-Mt Pleasant Anticline. The Goongarrie Monzogranite is in the core of this south plunging anticline and is enclosed by rocks of the Ora Banda Domain.

The mafic-ultramafic rocks in the Comet Vale area therefore are part of the same sequence that hosts the Grants Patch, Ora Banda and Mt Pleasant gold camps, as well as the Goongarrie and Highway nickel laterite deposits on the southern and western limbs of this anticline and consist of the Missouri Basalt, the Walter Williams Formation and the Siberia Komatiite. To the east of the property is the northern extension of the prolific Boulder-Lefroy Fault that hosts the world-class Superpit mine.

The Sovereign trend of gold deposits is made up of multiple quartz veins across 1.3km of strike hosted within the Missouri Basalt. The deposits have been exposed to minimal drilling over the past 15 years and the veins remain open to the north and south as well as at depth.

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