West Australian-focused explorer Magnetic Resources NL (ASX:MAU) has updated the mineral resource estimate of its Lady Julie North 4 (LJN4) deposit near Laverton, noting an increase of approximately 57 percent, as it rose from 0.95 million ounces (Moz) to 1.49Moz.
The total resource now sits at 23.2 million tonnes (Mt) at 2.01 grams per tonne for 1.49Moz.
The new estimate – which has been announced only four months after Magnetic’s last update to the market – was based on a program of extensive down-dip drilling work at LJN4, and adds to the company’s overall resource estimate for its Laverton and Homeward Bound South projects of 32.6Mt at 1.79 grams per tonne gold at 0.5 grams per tonne cut-off.
The latter estimate has also influenced the company’s approach to mining options for the projects, since the cutoff grade of 0.5 grams per tonne is seen as suitable for large-scale open pit mining, with an operation at LJN4 expected to go to a depth of 440 metres below the surface.
This is deeper than what was previously predicted for LJN4, with a pit design taken from its pre-feasibility study – announced in March – suggesting mining to a depth of 310 metres from the deposit.
However, LJN4’s continuous mineralisation deeper than 440 metres is also amenable to underground mining.
Managing director George Sakalidis said drilling work at the deposit had yielded important information about its mining potential.
“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,” he said.
“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.
“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.”
He added that Magnetic was now working towards taking the data yielded from LJN4 to a feasibility study.
“Preparations are also underway on the development of a Mining Proposal,” he said.
“One mining lease application has already been lodged over LJN4 – others will follow the lodgement of the Mining Proposal.”
Magnetic has been trading at $1.18