- Laneway Resources (LNY) has finished its pit cutback and is advancing infill drilling at Sherwood within the Agate Gold Project in Queensland
- It’s believed a deeper zone of mineralisation lies beneath the currently known deposit
- Now the open-pit cutback is complete, the remainder of the 39-hole infill drilling program can proceed
- Once the drilling results have been evaluated, the pit design will be updated and phase two of mining can commence
- Laneway will also finalise mining contractor and ore transportation arrangements, as well as toll treatment options for ore processing as a means of generating near-term cashflow
- Laneway Resources closed Tuesday’s session steady at 0.8 cents per share
Laneway Resources (LNY) has finished its pit cutback and is advancing infill drilling at Sherwood within the Agate Gold Project in Queensland.
The drilling is aimed at delineating high-grade ores to assist in the final pit design.
Targeted drilling
It’s believed a deeper zone of mineralisation lies beneath the currently known deposit. The new drilling will aim to delineate this zone to reduce the stripping ratio of waste material to be mined in the initial phase.
The company is aiming to mine 30,000 tonnes of high-grade ore in the first 12 months of operation.
Five of the planned 39 reverse circulation holes have been drilled so far, with the remainder of the program to be completed in the next two weeks.
As it stands, the pit design would allow for the mining of around 20,000 to 25,000 tonnes of high-grade ore to be mined in the near term.
With results from the first five holes grading up to 9.31 grams per tonne gold, there seems to be some promise further infill drilling will help Laneway target further high-grade ores.
Next steps
Now the open-pit cutback is complete, the remainder of the infill drilling can proceed.
Once the drilling results have been evaluated, the pit design will be updated and phase two of mining can commence.
Laneway will also finalise mining contractor and ore transportation arrangements, as well as toll treatment options for ore processing as a means of generating near-term cashflow.
If the company can increase the quantity of high-grade ores mined in the first year of operation, the greater goal of planning for large scale mining activities — including on-site processing at the Agate Creek Project — will move a step closer.
Laneway Resources closed Tuesday’s session steady at a price of 0.8 cents per share.