Agate Creek Gold Project
Laneway’s 100% owned Agate Creek Gold Project is a large highly prospective epithermal system located approximately 40km south of Forsayth and 60km west of Kidston in North Queensland. The project is comprised of EPM 17788, EPM 26460 and MDL 402 covering a total of 648km2. Laneway has been recently granted Mining Lease 100030 over the near surface high grade gold mineralisation at the Sherwood and Sherwood West prospects. It is intended, pursuant to the Mining and Processing Agreement recently entered into with Maroon Gold Pty Ltd (Maroon), for mining operations to commence shortly at Agate Creek and then process this ore through Maroon’s wholly owned CIL processing plant. Maroon recently finished recommissioning the Black Jack Plant and poured their first gold bar since taking over the plant. Black Jack has the capacity to process up to 340,000tpa By utlising an existing third party processing plant Laneway aims to be able to bring Agate Creek into production for minimal capital expenditure and on an expedited schedule, compared to other similar development projects.
Tribute and Toll Treat Agreement with Maroon
The direct costs incurred with respect to the first 100,000 tonnes of production from to the project including but not limited to mining; transportation, crushing and processing of ore; and rehabilitation of the disturbed area, will be incurred and paid for by Maroon. Gold produced will be paid 60% to Laneway and 40% to Maroon above 3.5 g/t gold head grade with the initial 3.5g/t produced to be retained by Maroon towards the above costs.
Agate Creek Resource
In 2016 the company completed an updated JORC resource estimate of 381,000 oz at 1.4g/t for the Agate Creek project. The update included drilling completed in 2014 and 2015 and also a high grade zone at Sherwood with an Indicated Mineral Resource of 89,000 tonnes @ 6.0 g/t (Table 2).
The global recoverable Mineral Resource in Table 1 is at a 0.5 g/t Au cut-off suitable for a large open pit operation.
Table 1: Total recoverable Mineral Resource at 0.5 g/t gold cut-off grade (rounded to ‘000 oz)
A continuous high grade Mineral Resource can be interpreted at cut-off of 2 g/t Au for Sherwood and 1 g/t Au for Sherwood West and reported in Table 2. Table 2 represents a subset of Table 1.
Table 2: High grade Mineral Resource subsets (rounded to ’00 oz)
Geology and Mineralisation
Agate Creek is situated within the Etheridge Goldfield which historically produced over 3.7 million ounces of gold, along with minor amounts of silver, copper, lead and other minerals from placer and hard rock (mostly vein) sources. The most significant deposit in the Etheridge Goldfield is the Kidston deposit, located some 60km east of the Agate Creek Gold Project. Whilst in recent operation 1984-2000 Kidston produced in excess of 3 million ounces of gold.
The main styles of gold mineralisation in the area are epithermal and meso thermal systems within quartz veining, stockworks and breccias associated with the felsic volcanic units of the Permian Kennedy Igneous Group and the Proterozoic Forsayth Batholith. Additionally, historical narrow-vein mining has taken place within the Forsayth area along or adjacent to the fault traces.
Gold mineralisation at Sherwood is a low-sulphidation, adularia-sericite type epithermal system genetically related to the emplacement of Permo-Carboniferous porphyritic rhyolite and andesite extrusives and intrusives. Most mineralisation occurs within the Robertson Fault Zone, at the intersection of the Robin Hood Fault. The mineralised zones are interpreted as boiling outflow zones, likely fossil geysers. The Agate Creek Fault the fault forms the eastern boundary but mineralisation is open in all other directions.
Sherwood West is located 1km to the west of Sherwood and is hosted within a brecciated rhyolite, infilling a thrust fault truncated in the north by the Zig Zag Fault. The Sherwood West Fault is infilled with Permian rhyolites which host gold mineralisation in chalcedonic quartz veining and breccias. At Sherwood West the known mineralised zone extends for over 1km along strike and remains open to the south and at depth. There is also the potential for parallel repetitions of the currently known mineralized zone.
Complimenting Sherwood and Sherwood West are a number of high priority Regional Targets that have the potential to increase mine life at Agate Creek. Laneway intends to complete follow up exploration activities on the Regional Targets including;
Jedda Vein represents a priority Regional Target, as demonstrated by high grade rock chip samples (ASX release 3 November 2014) which returned results of 15.75g/t Au and 20g/t Ag.
Eastern Bar has been tested by 7 holes and continuation of the structure at depth is confirmed by elevated Ag, Pb and Zn results. It remains open at depth and along strike. Soil samples at Eastern Bar have highlighted a 1,000m x 500m geochemical soil anomaly with a 400m long potentially en-echelon zone to the south. Rock chips from the area included 52g/t Au with associated elevated Ag, Cu and Pb. Eastern Bar represents a drill ready target.
Previous drilling at Bald Mountain has revealed the potential for gold deposits within a diatreme breccia pipe, as well as vein style and breccia hosted gold. A historical drill hole (AOG6) to the north of Bald Mountain returned 2m @ 33g/t Au from 70m. As well as the drill ready Bald Mountain target is the prospective Kimberley Sue area.