Magnetic Resources NL has announced that it received placement funds and now has over $5.5 million in cash reserves, enabling it to start drilling activities at the Lady Julie North 4 (LJN4) site.
According to the company, the reverse circulation (RC) and diamond drilling programmes will increase and upgrade the resource, as well as follow up on promising thicker intersections.
It added that the programmes will also include additional drilling to the south of LJN4 to look for satellite deposits, geotechnical diamond drilling for pit slope determination, publishing feasibility studies and initial preparations for the commencement of mining and general working capital.
According to the company, the area covering the Lady Julie and HN9 Projects are well endowed with gold mineralisation and has the potential to become a mining centre after more drilling is completed.
In its initial drilling program at Lady Julie, the company completed 120 RC drill holes totalling 5,943 m and has followed it up with 13 RC holes for 1,185 m.
It added that several of the mineralised zones within Lady Julie occur within altered porphyry and mafic contacts and in some cases with sediment zones.
