Magnetic Resources (ASX: MAG) has purchased 11 tenements in the prospective Leonora-Laverton gold region following some recent drilling success in the area.
The new tenements cover 21 sq.km and include permits P39/5455, P39/5928-5929, P39/5931-5934, P37/9144 and applications P39/6175-6177 covering a five km strike length of the Federation Shear Zone situated 40km east of Leonora.
The fault corridor shows up as a distinct aeromagnetic low zone interpreted to result from magnetite destruction within the shear zone.
Managing Director, George Sakalidis, said the company has now purchased a 100% interest in the Homeward Bound South tenements for a consideration of $50,000 and 250,000 fully paid shares in Magnetic.
Two recent drilling programmes have been completed by Magnetic including a 12- hole 873m RC drilling programme with holes averaging 73m depth and a 103- hole 2742m RAB drilling programme with holes averaging 27m depth.
Most of the intersections are within broad strong alteration zones, shown up in the logging of RC chips, that indicate some size potential from drilling. The Kalata alteration zone includes an intersection of 19m @ 1.1g/t Au from 32m to end of hole, which is not tested down dip and the main Federation alteration zone includes an intersection containing 25m @1.25g/t Au from 12m to end of hole (including 12m at 2.2g/t from 12m), which is also not tested down dip and is open to the south.
The Kalata shear is about 800m in length, open to the south and the Federation shear is about 1.5km in length and is also open to the south. A number of promising thicker and wider intersections have been drilled within the wide Federation shear and Kalata shear including a number of holes that have ended in mineralisation.
The RC and RAB programme completed by Magnetic is the only record of any systematic modern exploration along the 4.5km strike extension of the Federation Shear.
Homeward Bound South has shown excellent upside with the length of both The Kalata and Federation shears at this stage totalling 2.3km in length, with both shears containing thicker gold intersections up to 40m thick with excellent down dip potential as most holes are less than 75m in depth,” Mr Sakalidis said.
“Further upside is indicated by a 1.5km long NS geochemical anomaly trending southwards from the northern mineralised Federation shear. Also, this Project is strategically located and is 40km east of Leonora and 60km west of HN9 at Laverton.”