Magnetic Resources NL (ASX: MAU) has achieved an approximately 57% increase in updated Mineral Resource Estimate for the Lady Julie North 4 (LJN4) gold project in WA.
The update follows extensive down-dip drilling at LJN4, with the MRE growing from 0.95 m million ounces (Moz) to 1.49Moz.
Total Mineral Resources reported for the Laverton and Homeward Bound South projects is now 32.6Mt @ 1.79g/t Au at 0.5g/t cut-off 1 totalling 1.87Moz of gold.
Extension drilling at LJN4 is continuing and is expected to result in a further resource increase as the northern strongly pervasively altered zones are thick and are still open at depth. There is also potential from drilling beneath the footwall of the stacked lode sequence, an area with limited previous evaluation.
Managing Director George Sakalidis said the mineralisation deeper than 440m below surface shows strong continuity and therefore amenable to underground mining. A cutoff grade of 2g/t Au is considered appropriate and has been applied to this portion of the model. Underground mineralisation remains open down dip to the east and is likely to result in an increase to the current underground Mineral Resource as exploration drilling continues.
“The LJN4 resource has been the company’s primary drilling focus over recent months. LJN4 has multiple stacked lodes with several thick intersections that have not been closed off at depth. Mineralisation consists of thick strongly altered zones mainly associated with intensely fuchsite altered ultramafic rock types in the northern half of the deposit and breccia silica pyrite altered zones within the southern half of the deposit," Mr Sakalidis said.
"The LJN4 deposit sits within a regional structure called the Chatterbox Shear Zone that extends over a 12km length within the Magnetic tenements.
The Lady Julie Gold Project PFS was released to the ASX on 7 March 2024. An updated economic study has commenced and augur well given the outstanding resource upgrade at LJN4 (not yet incorporated into the mine plan) and conservative economic assumptions assumed in the 7 March 2024 PFS.
"Work is now well advanced on taking this to a feasibility study level of accuracy. Preparations are also underway on the development of a Mining Proposal. One mining lease application has already been lodged over LJN4 – others will follow the lodgement of the Mining Proposal.”
