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Labyrinth Begins Soil Sampling Program
Comet Vale groundwork begins while the Menzies area experiences thriving gold and lithium exploration
Labyrinth Resources Limited (ASX: LRL) (‘Labyrinth’ or ‘the Company’) has completed preliminary mapping and sampling at its Comet Vale gold project in Western Australia (‘the Project’).
Reconnaissance trip a solid start to Comet Vale ground exploration program
- 35 rock chip samples of prospective mafic/ultramafic rocks and pegmatites were taken from Comet Vale tenements
- Samples are being assayed with results expected in 2-3 weeks
- Historic magnetics and radiometric data has been acquired and reprocessed to aid in mapping gold bearing structures and prospective geology
- Radiometric data (TC) showed several anomalies and previously unknown structures
- Soil sampling program has started on western side of tenement package
The reconnaissance program has renewed interest in the historically overlooked multi- commodity prospectivity of the Comet Vale project. Reconnaissance samples are at the laboratory undergoing analysis and results are expected in 2-3 weeks (samples shown in Figure 1 and Figure 2). Recently acquired radiometric data (U, Th and Total Count or “TC”) showed numerous unexplained anomalies (Figure 3). Pegmatite samples collected were coincident with these anomalies, though the radiometrics could be indicating alteration, variation in intrusives (more specifically fractionation) and faults.
These findings initiated a gridded soil sampling program. The soils will be assayed for Lithium (Li), Caesium (Cs), Tantalum (Ta) and other Rare Earth Elements whereas historical programs have focused on gold and some indicator elements for base metals. The soil samples will help to explain the geophysical anomalies.
CEO Jennifer Neild explained , “We’re fortunate at Comet Vale to have such a richly prospective tenement package for multiple commodities.
This does mean going back to basics and soil sampling programs are a great way to vector in on prospective intrusions, structures and in the best case, mineralisation.
With the recent joint venture activity proximal to Comet Vale focused on lithium, Labyrinth has been identified as highly prospective tenure both internally and externally.”
Figure 1. Pegmatites in hand sample and in the field.
The reconnaissance work also confirms historic positions of copper (Cu) (Figure 2) and nickel (Ni) laterite mineralisation and prospective geology. The work noted more detailed variation in ultramafic intrusions, possibly explaining some anomalism seen in geophysical data. Finding evidence to explain geochemical and geophysical variance narrows is key to narrowing down targets.
Figure 2. Copper minerals including bornite, chalcopyrite, azurite and malachite from Long Tunnel Prospect.
Figure 3. Total Count (total gamma radiation emitted) attributed to potassium (K), thorium (Th) and uranium (U) over a regional dataset. Goldfields Highway through the middle of the map. Infrastructure and salt lakes need to be considered. Map in MGA GDA 94 z51.
Figure 4. Geology overlain with aerial imagery, showing position of mine, sample locations and important structural trends MGA GDA z51.
Soil sampling was already in the planning stages when Ora Banda Mining Ltd (‘OBM’) signed a Joint Venture agreement with Wesfarmers Limited’s (‘WesCEF’) exploration subsidiary Brenahan Exploration Pty Ltd (‘BEPL’)1 lending credence to Labyrinth’s interpretation of the regional lithology (Figure 5). The recent exploration activity has involved thoroughly assessing the complete mineral potential through targeting exercises of Comet Vale.
Indicator elements will assist in understanding the fractionation of intrusives and make sense of the radiometric anomalies. Radiometric surveys can detect the intensity of gamma rays of particular elements like K, Th and U. The TC refers to the total gamma rays emitted and might indicate the partitioning of elements within granitic melts, potentially a helpful tool in detecting compositional changes in intrusions.
Gold occurrences across the ground produced many ounces of gold in small scale operations over the last 120 years. Long Tunnel-Lake View and Coonega trends (ENE-WSW) have been thought to be minor trends, but the structure can be delineated across the region in the magnetics. Other N-S trends such as the Rambo Trend, east of Comet Vale also remain interesting with historic drillholes now digitised and confirm mineralisation (Figure 4).
This article includes content from Labyrinth Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here .
Gold is a long-time favorite store-of-value asset to hedge against global turmoil. Investors have several ways to invest in the precious metal, whether buying bullion, investing in gold ETFs, or buying stock in mining companies. While there are gold deposits worldwide, Australia and Canada remain strong producers of the metal, ranking as the world’s second and fifth-largest gold producer s, respectively.
Labyrinth Resources (ASX: LRL ) is a junior mining company with underexplored gold assets in tier 1 jurisdictions of Quebec and Western Australia, including the Labyrinth Gold project located in the heart of the Abitibi Gold Belt. The asset has not received significant exploration or development attention for more than 15 years, creating tremendous upside potential.Labyrinth Resources is exploring its Comet Vale property in Western Australia, which has historically produced over 180,000 ounces (oz) of gold with mining only going to a 250-meter depth. Multiple gold mineralized trends are present across the tenure as well as significant nickel and copper anomalies that have not been followed up. Recent work done by Ardea Resources (ASX: ARL ) shows the project is prospective for significant Lithium-Caesium-Tantalum (LCT) pegmatites. The Walter Williams formation hosts Ardea’s KNP containing 854Mt at 0.71 percent nickel (Ni) and 0.045 percent copper (Co). High-grade Ni laterite intersections with proximal high Cu rock chips suggest there is nickel sulphide potential on the Comet Vale property.
The Labyrinth Gold project has an inferred mineral resource of 3 million tons (Mt) @ 5 g/t for 500,000 oz (at 3 g/t.m cut-off) with a notable high-grade component of 150,000 oz @ 10 g/t (above 6 g/t cut-off) and high grades of up to 62.5 g/t and widths up to 16 meters received across five individual lodes from maiden drilling. In 2022, Labyrinth announced outstanding metallurgical results from its comprehensive test work which demonstrate a clear, efficient processing pathway for its 500,000 oz Labyrinth Gold project. The company achieved an outstanding recovery through the gravity/flotation flowsheet, returning a low mass pull, high value 96 g/t gold concentrate at 97.3 percent recovery.
Labyrinth also completed a surface diamond drilling campaign at the Denain gold prospect, with a total of 4,018 meters drilled from 22 holes. The company has received all assays which confirmed the presence of two high-grade gold veins with associated copper that remain open in all directions. In December 2022, Labyrinth commenced an extensive exploration campaign at its Comet Vale Gold-Copper-Nickel project in Western Australia. The program is the first genuine surface exploration undertaken at Comet Vale in 15 years.
The company is well-positioned to acquire 100 percent ownership of the Labyrinth Gold Project from G.E.T.T Gold (TSXV:GETT). The final installment of the revised agreement is due for payment on September 29, 2023.
The company has an experienced, lean management team with a record of success in the natural resources industry. The team comprises mine engineering, geology, corporate administration, and international law experts, building confidence in Labyrinth’s ability to capitalize on its promising assets. In a current global environment desperate for genuine underground operational expertise, the Labyrinth team possesses the required skill set to leverage into value-accretive operating mine opportunities.
- Labyrinth Resources is a junior mining company with an underexplored gold asset on the Abitibi Gold Belt in Quebec and a highly prospective multi-commodity project in the Yilgarn Craton of Western Australia.
- Quebec is a globally recognized tier 1 mining jurisdiction with strong government and community support.
- The project’s current inferred mineral resource of 3 million tons (Mt) @ 5 grams per ton (g/t) for 500,000 ounces (oz) (at 3 g/t.meters cut-off) with a notable high-grade component of 150,000 oz @ 10 g/t (above 6 g/t cut-off) and high grades of up to 62.5 g/t and widths up to 16 meters received across five individual lodes
- The company’s project is surrounded by prolific mining companies with multi-million-ounce gold deposits, with testing of the Labyrinth deposit barely scratching the surface in comparison to the deep nature of many Abitibi gold operations.
- Comet Vale lies within the prospective Menzies mining area, well-located on the Goldfields highway 100km north of Kalgoorlie.
- There is significant high-grade, multi-lode gold production across the tenement package and under-explored multi-commodity potential
- A combined open pit and underground Indicated and Inferred Minerals Resource of 619,000t at 4.8g/t for 95,710oz
- The Comet Vale UG resource is estimated to be 56,233oz at 7g/t (2.5g/t cut-off) and the open pit resource as 39,477oz at 3.3g/t (0.5g/t cut-off)
- The mineralised shear is open at depth and north and south of the the 5km
- Multiple lodes on the tenement package in historic workings have not been explored below 50-100m
- A management team with a proven track record of success in the natural resources industry adds value to the company. It creates confidence in its ability to fully capitalize on its projects.
Comet Vale Project
The company’s Comet Vale project is located 100 kilometers north of Kalgoorlie. It hosts extensive high-grade gold with existing underground development and infrastructure. The project is surrounded by historic high-grade gold mines with past production from the Sand Queen and Sand George mines totaling 181,000 oz @ 23 g/t with multiple other high-grade satellite deposits.
Drilling at the Comet Vale commenced in March 2023 with an initial 20 holes covering 1,500 meters. The program was designed to test extensions to known mineralization of the high-grade Sovereign Trend. High-grade assays were received and significant results from this program include:
- 5 meters @ 15 g/t gold from 46 meters including 2 meters @ 35.6 g/t from 49 meters in hole CVRC23_008
- 3 meters @ 11.41 g/t gold from 46 meters in hole CVRC23_007
- 2 meters @ 15.53 g/t gold from 126 meters including 1m @ 25.56 g/t from 127 meters in hole CVRC23_016
The Sovereign Trend has an updated high-grade JORC 2012 mineral resource estimate that laid the foundation for further growth:
- Combined open pit and underground indicated and inferred mineral resource of 619,000 tons @ 4.8 g/t gold for 95,710 oz
- Underground resource of 56,233 oz @ 7 g/t (2.5 g/t cut-off)
- Open pit resource of 39,477 oz @ 3.3 g/t (0.5 g/t cut-off)
- Notable high-grade indicated mineral resource component of 42,000 oz @ 10 g/t gold (above 5 g/t gold cut-off)
Compilation of historic results and mapping is in progress, which expands upon the Sovereign Trend and has validated the extensive gold prospectivity still existing below 50m depth across the tenement package.
The Labyrinth Gold Project
The company’s flagship project sits on the Abitibi Gold Belt and has neighbors with multi-million-ounce gold deposits. However, the asset has not received significant exploration attention for the past 15 years. Only one 400-meter hole was drilled in that timeframe, leaving much of the asset untouched by modern exploration technologies. Fortunately, the asset contains a pre-existing and accessible underground mine, significantly reducing upfront development costs.
- Multimillion-ounce Potential : Recent exploration campaigns have identified targets for follow-up drilling that indicate targets with ideal historical intersections of multiple lodes. The company has completed maiden underground and surface exploration campaigns in 2022 to facilitate delivery of the maiden JORC estimate and demonstrate high-grade mineralization continuity at increasing depth.
- Updated Resource Estimate : JORC 2012 compliant inferred mineral resource of 3 Mt @ 5 g/t for 500,000 oz (at 3 g/t.m cut-off) with a notable high-grade component of 150,000 oz @ 10 g/t (above 6 g/t cut-off)
- Strong Existing Infrastructure: The project contains an underground mine, reinstated heating, operational surface buildings and ground support.
Jennifer Neild - Chief Executive Officer
Jennifer Neild is a resources executive with more than 18 years of experience in exploration across a broad range of commodities in various jurisdictions. She was most recently chief executive officer of Peak Minerals (ASX: PUA ). Neild holds a degree in Geology (Hons) from Laurentian University in Sudbury, Ontario, and a Master's in Geophysics from Curtin University in Perth, Western Australia. She has held senior positions in exploration, resource geology and production geology in both Australia and Canada with Newmont Australia and Falconbridge. She was the general manager of interpretation for expert geophysics group HiSeis. With her geological and geophysics expertise in both Western Australia and Canada and her corporate and executive experience in the resources industry, Neild is ideally placed to drive the next round of exploration at the company’s Labyrinth and Comet Vale projects. She is also a member of the Australian Institute of Company Directors.
Dean Hely - Non-executive Chairman
Dean Hely is the managing partner of West Australian legal firm Lavan, with more than 29 years of experience working in corporate reconstruction, insolvency and commercial litigation. Hely currently serves as a board member of the not-for-profit organizations Rugby WA, the Australian Institute of Management WA and Youth Focus.
Simon Lawson - Technical Director
Simon Lawson is a professional geoscientist with more than 15 years of experience spanning multiple commodities and jurisdictions and was a founding team member of Northern Star Resources (ASX: NST ). Currently, Lawson is the managing director of ASX-listed Spartan Resources Ltd (ASX:SPR) (formerly Gascoyne Resources (ASX:GCY)), a West Australian gold-focused mining company, and has personally visited and reviewed the acquired Canadian gold properties.