Laneway Resources’ (ASX: LNY) drilling at the Agate Creek gold project in Queensland has returned an initial assay from the first hole of 31 metres at 5.96 grams per tonne gold from 124 metres including 1 metre at 73g/t gold.
Agate Creek is located within the historic Etheridge Goldfield and is about 60 kilometres west of the Kidston deposit that has produced over 3 million ounces of gold.
The gold intercept in the first hole is located within a zone of stock worked veining with the company adding that significant variation of grades due to intensity of veining can be seen throughout the zone.
Full results from the second completed hole, which targets deeper intersections of the interpreted Bonanza Zone are expected shortly.
The company noted that while the results from the first hole were high grade, they did not represent the targeted deeper Bonanza Zone but rather a separate boiling zone within the system.
It added that high grade veins are a common feature of low-sulphidation epithermal deposits worldwide.
Drilling at Agate Creek was carried out under the Collaborative Drilling Initiative under which 50% of the direct costs up to $145,500 was covered under a grant from the Queensland Government.
Laneway plans to undertake further follow up drilling of this high grade zone, which is located within the currently modelled open pit, and other targets at Agate Creek, subject to successful completion of a capital raising.
It also intends to carry out resource infill and strike and dip extensions drilling at the Sherwood deposit area with an aim to increasing the current combined Indicated and Inferred Resource of 9.5 million tonnes at 1.4 g/t gold and drill testing of several regional prospects that have been identified from previous soil geochemical, ground magnetic, geological mapping and rock chip analysis.
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