Labyrinth Lays Foundation For Growth With Completion Of Resource And Exploration Strategy

Labyrinth Resources Limited (Labyrinth or the Company) (ASX: LRL) is pleased to announce the completion of the first stage of its growth strategy at the Comet Vale Gold Project in WA.

Key Points

• Combined open pit and underground Indicated and Inferred Mineral Resource of 619,000t @ 4.8 g/t Au for 95,710oz
• Underground Resource of 56,233oz @ 7g/t (2.5g/t cut-off) shows high grade nature of the mineralisation
• Open pit Resource of 39,477oz @ 3.3g/t (0.5g/t cut-off) highlights the potential to establish significant high-grade, shallow inventory; This would open the door to near-term mining and cashflow options
• Notable high-grade Indicated Mineral Resource component of 42,000oz @ 10g/t Au (above 5g/t Au cut-off)
• Resource is open in all directions, demonstrating substantial growth potential through both the near-mine and regional drilling across other known gold trends
• Previous mining conducted at the property showed recoveries of 95% through conventional CIL processing at nearby toll treatment facilities1
• Mineral Resource prepared by an independent Competent Person and classified and reported in accordance with the JORC Code (2012)
• Resource is based on an extensive drilling database and rigorous modelling by independent consultants Right Solutions Australia

Next Steps:

• Receipt of assays from recently completed RC drill program targeting near-surface resource growth
• Planning of deeper drilling targeting down dip high grade mineralisation identified during the Resource estimate
• Regional exploration drilling targeting additional known gold and copper/gold trends
• Regional exploration drilling for other known commodities present on the property including nickel laterite

The Mineral Resource was prepared by a Competent Person and classified and reported in accordance with the JORC Code (2012).

The Comet Vale project is situated within the Ora Banda Domain within the Yilgarn Craton and has been mined periodically over many decades, most recently between 2018 and 2020.

The Company has undertaken a review and compilation of all available historic data to facilitate the production of a Mineral Resource reported in accordance with the JORC Code (2012).

The Indicated and Inferred Mineral Resource includes mineralisation within 10 lodes: 2 lodes (Domains 1-2) in the Sand Queen trend and 8 lodes (Domains 3-10) in the Princess Grace and Sand George trend (Table 9). Collectively these 10 domains make up the Sovereign Trend. In addition to the known mineralisation, there is also immense potential to grow the Mineral Resource given that the key lodes remain open along strike and at depth (Figures 12 and 13).

Labyrinth Chief Executive Matt Nixon said: “This is a robust Mineral Resource which lays the foundations for ongoing resource growth.

“We have defined a significant resource at consistent high grade across the historically mined areas for both open pit and underground scenarios to reinvigorate the Comet Vale Project at an exciting period for the gold market.

“The underground resource grade of 7g/t shows the high-grade nature and genuine potential of this deposit in a world class gold belt.

“Importantly, the estimate shows high grade mineralisation continues at depth and along strike. This provides immediate high priority drill targets to further grow the Resource.

“This Mineral Resource covers only the Sovereign Trend of lodes to a maximum depth of 400m below surface. With 7 other known mineralised gold trends as well as the potential for parallel systems to be discovered, there is significant growth potential across the Project.

“Following on from the success of this Mineral Resource, the Company looks forward to conducting drilling both for future resource growth as well as exploration to bring new discoveries into the pipeline”.

Table 1: Comet Vale March 2023 Depleted Resource (Au>=0.5g/t OP and >=2.5g/t UG)

Note: Estimates are rounded to reflect the level of confidence in the Mineral Resource at present. All resource tonnages have been rounded to the first significant figure. Differences may occur in totals due to rounding.

Click here for the full ASX Release

This article includes content from Labyrinth 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.