Forrestania Resources is set to restart reverse circulation drilling at its Lady Lila gold prospect in Western Australia, following the acquisition of a strategically located tenement adjacent to the site. The company aims to expand its inferred resource and update its JORC estimate after promising historic and recent drill results.
- New RC drilling program commencing at Lady Lila prospect
- Acquisition of granted tenement E77/2853 adjacent to Lady Lila
- Existing inferred resource of 541,000 tonnes at 1.38g/t Au for 24,000 ounces
- Historic and recent drilling show significant high-grade gold intercepts
- Proximity to established gold processing facilities enhances development potential
Background and Resource Potential
Forrestania Resources Limited (ASX: FRS) is reigniting exploration efforts at its Lady Lila gold prospect, located within the prolific Forrestania project area in Western Australia. The prospect boasts a previously reported inferred JORC mineral resource of 541,000 tonnes grading 1.38 grams per tonne gold, equating to approximately 24,000 ounces. Situated roughly 15 kilometres southwest of the historic Bounty Gold Mine, which produced 1.3 million ounces over 12 years, Lady Lila offers a compelling exploration target with significant upside potential.
Drilling Resumes with New Tenement Acquisition
The company has secured a reverse circulation (RC) drilling rig from Topdrill Pty Ltd, with drilling scheduled to commence in mid-May 2025. This follows the recent acquisition of tenement E77/2853, which lies immediately adjacent to Lady Lila within the Forrestania greenstone belt. The tenement was acquired at a modest cost, covering application fees and rents capped at $10,000, and is believed to be underexplored based on government data reviews.
Encouraging Historic and Recent Drilling Results
Lady Lila has a history of promising drill intercepts, both from Forrestania Resources’ maiden drilling program in 2021 and earlier campaigns dating back to the late 1980s. Notable recent results include intercepts such as 14 metres at 1.9 grams per tonne gold from 91 metres depth, and 4 metres at 5 grams per tonne gold from 110 metres, with some intervals showing grades exceeding 10 grams per tonne. Historic drilling also revealed high-grade zones, including an 8-metre intercept at 7.2 grams per tonne gold, featuring a standout 1-metre section at 54.5 grams per tonne.
Strategic Location and Processing Options
The Lady Lila prospect benefits from its proximity to existing gold processing facilities, notably the Marvel Loch operation run by Barto Gold Mining and the Edna May mine operated by Ramelius Resources. Both are accessible via sealed roads, potentially reducing development costs and timelines. Additionally, nearby infrastructure developments, such as the potential conversion of the IGO Cosmic Boy nickel plant to process gold ore, could further enhance processing options for Forrestania Resources.
Looking Ahead: Resource Update and Expansion Potential
Chairman John Hannaford emphasised the company’s focus on extending mineralisation along strike and at depth, noting that the current inferred resource is based largely on drilling conducted before 1999, in a very different gold price environment. The upcoming drilling campaign aims to provide new data to update the JORC resource estimate and assess the potential for both open pit and underground mining. With mineralisation remaining open in multiple directions, Forrestania Resources is positioning Lady Lila as a key asset in its portfolio.
Bottom Line?
As Forrestania Resources kicks off drilling and integrates a new tenement, the market will watch closely for assay results that could redefine Lady Lila’s gold potential.
Questions in the middle?
- Will the new drilling confirm extensions to the existing inferred resource at Lady Lila?
- How might the acquisition of tenement E77/2853 impact the overall resource and exploration strategy?
- What are the economic implications of proximity to multiple processing facilities for potential mine development?