Laconia Resources (ASX: LCR) is a Perth-based gold and base metals exploration company. The Company has a portfolio of advanced gold and base metals projects in the Pilbara, the Murchison and Eastern Goldfields regions of Western Australia across 35 granted tenements covering approximately 955km2.
Laconia has a significant base metal ground position in the Pilbara including the Lennons Find Project. Lennons Find has a JORC Code Inferred Resource of 853,000 tonnes grading 7.7% Zn, 1.8% Pb, 0.7% Cu and 115g/t Ag.
Laconia Resources maiden drilling program doubles Lennons Find Base Metals Resource
With a 117% resource increase from the maiden drilling program at Lennons Find, Laconia managing director Ian Stuart tells Proactive Investors there could be much more to be found.
Laconia Resources (ASX: LCR) has achieved a 117% increase in total Indicated and Inferred Resources at the Lennons Find Base Metals project, less than a year after acquiring the project.
Laconia acquired Lennons Find in March 2011, and has since carried out a 42 hole, 1,939 metre reverse circulation and diamond drill program over the Hammerhead deposit.
Results from the maiden drilling program have led to an increase in the Indicated and Inferred Resource at Lennons Find to 1.85 million tonnes at 11.4% zinc equivalent, a 117% increase in total tonnes from the previous resource and a 37% increase in contained Zinc metal equivalent.
Shallow reverse circulation at the Tiger and Bronze Whaler prospects returned additional silver and base metals oxide resources, with a new oxide Resource of 197,000 tonnes at 89 grams per tonne (g/t) silver, 0.37g/t gold, 0.2% copper, 1.2% lead and 1.4% zinc.
Managing director Ian Stuart told Proactive Investors today that the company was pleased to have such a good result from its maiden drilling program.
“It’s a very good effort within 12 months of acquiring the project, turning around and doubling the resource so it’s a very good start and we believe there’s much more to be found,” Stuart said.
“We’re just starting to understand some of the geology, there’s other prospects along strike, four anomalies and gossans, so there’s plenty of exploration work to be done.”
The oxide resource will be subject to metallurgical testing to determine the feasibility of using a low capital expenditure acid heap leach metal stripping process.
This method would transform the contained metal into solution, then use a simple “Merrill Crowe” approach to concentrate the metal as a precipitant in shallow collection ponds.
More to be found at Lennons Find
Lennons Find, located in the eastern Pilbara region of Western Australia, comprises the Hammerhead deposit along with four other mineralised prospects; Bronze Whaler, Tiger, Mako and Grey Nurse.
Further drilling is planned to look for additional resources at depth at the Hammerhead deposit and target further oxide resources in the project area.
Reverse circulation drilling will be carried out at the mineralised prospects seeking a potential shallow supergene enrichment zone.
Meanwhile, a program of detailed mapping and geochemical sampling that began in 2011 will be completed in the 2012 field season.
Peruvian gold-silver project acquisition
In November 2011 Laconia agreed to acquire the Rasuhuilca advanced high grade gold-solver development project in Peru.
Rasuhuilca’s significant near-term development potential could provide cash flow for Laconia that would then assist with other projects.
The acquisition is subject to a number of conditions.
Laconia plans to raise up to $1.5 million through the issue of 37.5 million shares at $0.04 per share to advance work on the Peruvian projects. Alto Capital has been appointed as manager to the offer.
Shareholder approval for the capital raising will be sought at a general meeting on January 27.
