Agate Creek Gold Project
Laneway’s 100% owned Agate Creek Gold Project is a large highly prospective epithermal system located approximately south of Forsayth and 60km west of Kidston in North Queensland. The project is comprised of ML100030, MDL402, EPM17788 and EPM26460. During the Quarter two additional Exploration Permits for Minerals were applied for and granted further demonstrating Laneway’s commitment to mining and exploration in the Georgetown Inlier. EPMA27906 covers 23 subblocks and 74.9km2 of area surrounding Forsayth and several historical and existing mining leases to extend the Agate Creek Gold Project. EPMA27907 covers 95 subblocks and 308.8km2 of area adjacent to the west of the Agate Creek Gold Project. The tenements were granted in August 2021 and bring Laneway’s total tenure holding for the Agate Creek Project to 1,024km2
Laneway’s primary focus in 2019 has been on progressing the Agate Creek gold project into production to establish cash flow from the mining and toll treatment of Sherwood’s high-grade surface material. This successful development and the profitable mining operation of ≈70,000 tonnes of ore has provided a robust financial footing for the company to continue the progression of its Agate Creek project and other assets and continue reviewing additional potential high growth projects.
On 1st March 2019 Laneway was granted Mining Lease 100030 over the near surface high grade gold mineralisation at the Sherwood and Sherwood West prospects. Through a Mining and Processing Agreement with Maroon Gold Pty Ltd (Maroon), mining operations commenced quickly at Agate Creek with the ore processed through Maroon’s wholly owned Black Jack CIL processing plant. By utilising an existing third-party processing plant Laneway was able to bring Agate Creek into production for minimal capital expenditure and on an expedited schedule, achieving the first gold pour within 10 weeks of the ML being granted.
The Agate Creek long term plan is a low strip ratio open cut mining operation with on-site processing. This is being progressed with further exploration on the Sherwood prospects and also regionally. The Company is currently investigating the potential to extend and cut back the current small open pit for further toll treatment production early in 2020.
Agate Creek Resource
A global recoverable Mineral Resource was estimated in 2016 for the Agate Creek Project in Table 1 - at a 0.5 g/t Au cut-off suitable for a large open pit operation. 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 also shown below (prior to inclusion of results from the recent drilling and mining extraction). A new resource estimation is currently underway with assay results from recent drilling still outstanding. The new Estimation will take into account both mine depletion and all additional drilling undertaken since 2016.
The high-grade domain sub set for Sherwood was the primary material extracted as part of the tribute mining. During mining the ore blocks correlated well with the resource blocks. However, due to very selective mining techniques being utilised by the Laneway Geologists the overall grade of this zone appears to have reconciled higher than modelled, although final comparisons and reconciliations are still ongoing.
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 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.
Multi-element Geochemistry Analysis
Laneway intends to utilise the significant historical pulp library stored on site by undertaking detailed litho-geo-chemical & alteration geochemical multi element analysis, along with alteration zonation deposit modelling. This information will then be incorporated into the existing geological models to generate more comprehensive 3D fluid pathway modelling with the aim of significantly expanding the current gold inventory of the project. This information should allow for more accurate targeting of main mineralized zones at depth within the Sherwood, Sherwood West and potentially also the Nottingham Prospects. Results from this analysis will assist with developing a larger drilling program, while also providing further geological insight into the overall mineralisation system of the region, with the aim of further constraining existing regional targets through alteration geochemistry and metal enrichment signatures, as well as to potentially identify other prospective exploration targets within the project area.
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.
A drilling program commenced in September 2019 has included some of these high priority regional targets including Jedda. The exploration within Laneway’s large Exploration Tenement area at Agate Creek will be advanced with the objectives of confirming the potential for additional small tonnage high grade zoned deposits capable of being toll treated, along with the targeting of additional large tonnage targets to supplement the possible long term mining and processing of the lower grade Agate Creek Resources onsite.