LCL publishes maiden gold resource for PNG project, promises more to come

LCL Resources Ltd (ASX:LCL) has seen its share price rise more than 11% after it announced a maiden JORC resource of 18.3 million tonnes at 1.42 grams per tonne for 831,000 ounces at its Ono gold project in Papua New Guinea, with this being in the inferred category.

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The resource numbers – calculated with a cutoff of 0.5 grams per tonne of gold – referred specifically to the Kusi skarn deposit, and were based on drilling conducted by LCL in the past two years.

The company is also looking ahead to the project’s wider potential, since a historical trench to the southwest of Kusi’s resource area has produced results such as 28 metres at 0.9 g/t of gold and 21.6g/t silver, as well as 6.3% lead (Pb) and 1.9% zinc (Zn), and 3.35 g/t Au, 170 g/t Ag, 6.3% Pb and 13.9% Zn in a nearby rock chip sample.

Executive chairman Chris van Wijk said the data promised good things for Ono.

“We are proud to announce our maiden mineral resource estimate at the Kusi target in PNG which neatly underscores the geological potential,” he said.

“The geology supports the existence of further shallow pods of mineralisation around the central Kusi intrusive centre as well as the possibility for deeper mineralisation within the Lower Limestone unit that is highlighted by the trench results over this unit to the south of the existing resource area.

“Further exploration is warranted to investigate the tenor and scale of mineralisation in the
Lower Limestone unit as well as to test the obvious targets outlined by the soil geochemistry results.”

At 14:35 AEDT, LCL was trading at 1cps – a rise of 11.11% on Thursday.

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