Underground Potential Grows at Lady Julie North 4 Amid Deep Drilling Results
Magnetic Resources NL reports promising diamond drilling results at its Lady Julie North 4 gold deposit, indicating potential to expand the current 1.94 million ounce resource with significant underground extensions.
- Multiple thick, high-grade gold intersections in recent drilling
- Expansion of four defined high-grade core zones at LJN4
- Mineralisation extends well below current open pit limits
- Laverton Project resource now totals 2.14 million ounces
- Further drilling and resource update underway
Strong Drilling Results at Lady Julie North 4
Magnetic Resources NL has announced a successful round of diamond drilling at its Lady Julie North 4 (LJN4) gold deposit, part of the broader Laverton Project in Western Australia. The latest drilling campaign targeted both infill and extensions of the deposit’s four high-grade core zones, delivering multiple thick intersections with encouraging gold grades.
Notably, drill holes MLJDD088, MLJDD092, MLJDD086, and MLJDD107 intersected significant mineralisation well below the current open pit, with intervals such as 61 metres at 1.13 grams per tonne (g/t) from 257 metres and 31 metres at 1.30 g/t from 633 metres. These results suggest the deposit remains open at depth, enhancing the potential for underground mining.
Expanding the High-Grade Core Zones
The LJN4 deposit comprises four distinct high-grade cores, with the recent drilling confirming and extending these zones. High-Grade Core 3 (HGC3) and High-Grade Core 4 (HGC4) showed promising thick mineralised intervals, with HGC4 interpreted to cover an area of approximately 100 by 400 metres and remaining open at depth. The company plans additional infill and extension drilling to further define these zones.
These cores are hosted within a complex geological setting involving silicified ultramafic rocks, silica-pyrite breccias, and carbonate sequences, all influenced by the major Chatterbox Shear Zone. This structural corridor is known for hosting significant gold mineralisation across the region.
Broader Laverton Project Context
The Lady Julie North 4 deposit is a key component of Magnetic Resources’ Laverton Project, which recently saw its overall gold resource increase by 22% to 2.14 million ounces at an average grade of 1.86 g/t. The project includes several deposits such as Lady Julie Central, HN9, Mt Jumbo, and Homeward Bound South, all within close proximity and offering potential for a consolidated mining operation.
Managing Director George Sakalidis highlighted the significance of the drilling results amid rising gold prices, noting the potential for large-scale, shallow open-cuttable deposits complemented by strong underground resources at LJN4 extending from 400 to 1000 metres down dip.
Next Steps and Market Implications
Magnetic Resources is advancing a substantial drilling program, with 14 diamond holes planned to test further extensions and new targets, including a possible fifth high-grade core zone. A resource update is underway and expected to reflect an increase beyond the current 1.94 million ounce estimate.
Meanwhile, the company is engaged in discussions with financiers and mining companies to secure funding and strategic partnerships for project development. The expanding underground potential at LJN4 could enhance the project's economic viability and attract further investment interest.
Bottom Line?
With deep drilling success at Lady Julie North 4, Magnetic Resources is poised to redefine its underground gold potential, setting the stage for a resource upgrade and strategic financing moves.
Questions in the middle?
- How much will the upcoming resource update increase the current 1.94 million ounce LJN4 resource?
- What are the terms and timeline for potential financing or joint ventures for the Laverton Project?
- How will the underground extensions impact the project's mining method and economics?
