Mining and exploration company Laneway Resources (ASX: LNY) has announced “outstanding” high-grade gold assays exceeding 100 grams per tonne from extension drilling at the Sherwood deposit within its wholly-owned Agate Creek project in north Queensland.
The recently-completed 34-hole reverse circulation program was conducted around the current open pit operation to further define mineralised zones and explore targets identified in pit mapping and ore shoot interpretations.
The campaign encountered numerous and consistent high-grade intersections exceeding 100g/t gold in a number of drill holes, and may result in changes to the company’s current mining plan.
Best assays were 5m at 54.8g/t from 25m, including 2m at 125 g/t at 25m; and 2m at 68.9g/t from 35m, including 1m at 104g/t.
Other results included 3m at 34.1g/t from 26m; 2m at 30.5g/t from 40m; and 2m at 26.2g/t from 34m.
Laneway said the new assays will likely extend the overall high-grade tonnage available for mining and processing at Agate Creek.
The original mining schedule was expected to incorporate around 50,000 tonnes of high-grade ore for processing however an additional amount of up to 15,000t may now be able to be mined with increased mining depths and updated pit designs.
Chief operating officer Scott Hall said the new assays highlight the long-term potential of the Agate Creek region.
“These wide, continuous zones [could potentially] be upper portions of a deeper bonanza-grade feeder system, often found under epithermal gold deposits,” he said.
“While the drilling results confirm further high-grade ore for [our] current mining operations, they also encourage further deep exploration across the broader project area.”
Mr Hall said there may be some minor changes to the existing pit design to incorporate the newly-identified zones into the current mining period.
Last week, the company said operations were continuing to plan, with with over 13,000t of ore mined to date.
More than 11,000t of ore have been processed through the Black Jack plant at Charters Towers, owned by private equity backed vehicle Maroon Gold which entered into an agreement with Laneway in October to process an initial 100,000t.
Black Jack has the capacity to process up to 340,000t per annum and was secured to reduce Laneway’s capex costs and realise near-term cash flow.
Costs covered by the agreement – including mining, transportation, crushing and processing of ore, as well as rehabilitation of the disturbed area – will be incurred and paid for by Maroon.
Gold produced is being paid 60% to Laneway and 40% to Maroon above 3.5g/t gold head grade with the initial 3.5g/t produced to be retained by Maroon towards costs.
At mid-afternoon, shares in Laneway were up 37.50% to $0.011.