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Magnetic Resources identifies 2-kilometre gold strike near Laverton in WA

The West Perth company will undertake further drilling at the Hawks Nest 9 zone.

Australian flag transposed with an ASX price board
ASX-listed Magnetic’s ground is 15 kilometres northwest of Gold Fields’ Granny Smith operations

Magnetic Resources NL (ASX:MAU) is investigating 1.6 additional kilometres of ground prospective for gold after a large 2-kilometre-long soil geochemical anomaly was outlined at Hawks Nest 9 near Laverton in Western Australia.

The 2-kilometre strike at the historically-worked target zone ranged from 50 to 200-metres wide and was open to the north and south.

ASX-listed Magnetic views the gold zone as ‘highly prospective’ and highlighted it was 15 kilometres northwest of the Granny Smith operations owned by Gold Fields Limited (NYSE:GFI) (JSE:GFI) (SWX:GOLI) (OTCMKTS:GFIOF) subsidiary Gold Fields Australia Pty Ltd.

The project is 10 kilometres northeast of Dacian Gold Ltd’s (ASX:DCN) (FRA:DAG) Jupiter operations in Laverton.

READ: Magnetic Resources confirms vein-hosted gold mineralisation at Christmas Well

Magnetic managing director George Sakalidis reported, “The 2-kilometre zone contains numerous very anomalous soil sample results with 99 samples that are greater than 25 ppb gold of which 32 samples are greater than 100 ppb.

“Eighteen samples are greater than 200 ppb.”

The 2-kilometre anomaly contains 45 very shallow intersections greater than 0.5 g/t.

Magnetic’s managing director highlighted the company’s planned efforts for this month.

Sakalidis said, “A further 501 samples are being taken in January 2019, mainly endeavouring to extend this anomalous zone up to 800 metres to the north and 800 metres to the south, totalling 3.6 kilometres in length.”

MD Sakalidis highlighted the value of the project, given movements in the price of gold.

He said, “With the Australian gold price greater than $1,800 as compared to much lower prices between $400-$550 from 1986 to 2001 when some parts of this HN9 gold zone were drilled by previous companies, it now makes strong sense to fast-track drilling and potential economic studies of this significant 2-kilometre-long gold target.”

The MD pointed to similar bulk tonnage deposits already being mined in the region, saying their presence boded well for Magnetic.

These deposits included Dacian’s 14.7 million tonne Jupiter deposit grading 1.4 g/t from proved and Regis Resources Limited’s (ASX:RRL) (FRA:RKQ) (OTCMKTS:RGRNF) 117.2 million tonne group ore reserves for its Duketon operations which has a 1.08 g/t grade.

Sakalidis said, “This, augers well for the 40 reverse circulation (RC) holes totalling 1655 metres, which are awaiting assays and the upcoming 17 RC holes totalling 660 metres.”

Results are pending for the 40-hole 1655-metre program that took in 1655 metres to test shallow down-dip extensions of the drilled gold mineralised shears the company believed showed potential for near-surface bulk tonnage mineralisation over 1.5 kilometres.

The upcoming 17 RC-hole drilling campaign of 660 metres is designed to produce additional positive results from the recently completed 441-sample infill soil geochemistry program that is part of a more extensive, ongoing 842-sample soil-sampling program on the enlarged 3.6-kilometre strike.

Quick facts: Magnetic Resources NL

Price: 1.41 AUD

Market: ASX
Market Cap: $297.41 m

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