AN EMERGING GOLD PRODUCER Noosa Mining Conference PRESENTATION 22 July 2016
Agate Creek Gold Project (100%) – North Queensland
✚ MLA 100030 – application process is 90% complete, with ML grant forecast for Q3 2016.
✚ Environmental Approval granted – code compliant EA (#EPSL03068015)
✚ Mining – the mining plan is finalised. Very shallow, simple and low cost mining.
✚ Processing – existing Georgetown Plant is operational.
✚ Targeting 80,000 tonnes in the initial mining campaign with at least 8g/t head grade and very competitive costs
✚ Infrastructure – 20 man camp and 3km haul road to be constructed
✚ Further drill program of over 2,000m will commence in Q3 2016.
✚ Large highly prospective acreage (683km2) across the broader Agate Creek Gold Project, with an existing JORC
resource of 381,000oz of contained gold with potential to significantly increase Resource over time.
Resourceupgrade to be completed post drilling program.
✚ Minimal capital requirements to first gold.
✚ Project derisked – 5,000 tonne sample mined and processed in 2014. Successfully produced 1,725oz and
identified process improvements to achieve over 90% recovery.
Southern Coromandel Gold Project (100%) – New Zealand
✚ IP program completed showing approx. 15km continuation of existing gold bearing structures.
✚ Phase One Drilling program has commenced, with 6 holes completed (approx. 2100m).
✚ Assays results – pending
✚ Prospective acreage – 102km2 adjoining 3 existing mines
Summary & Project Location
✚ Agate Creek Project is located approximately 40km south of Forsayth in
North Queensland. Key components being brought together to deliver
near term production from a near surface high grade open cut mine:
✚ Mining Lease Application lodged over the Sherwood and
Sherwood West prospects;
✚ Recent exploration showing a strong continuation of the
mineralisation that was mined as part of the near surface high
grade Metallurgical Sample.
✚ Six highly prospective gold and base metal prospects located in three
EPM’s covering 620km2, and 66 additional prospects that warrant
follow up work
✚ Within 60km of the world class Kidston Deposit which historically
produced over 3.4Moz Au/Ag.
✚ Advanced project with more than $18m already spent, more than 500
drill holes with the majority of the drilling being less than 200m deep.
✚ Current JORC Resource(1):
✚ 8.2 Mt @ 1.4g/t for 381,000oz Au at 0.5g/t cut-off
✚ 1.25 Mt @ 2.11g/t for 85,000oz Au at 1g/t cut off at Sherwood
and 2g/t cut-off for Sherwood West.
In January 2014, a 5,472 tonne Metallurgical Sample was mined, hauled and toll-treated through a CIL processing
plant at Georgetown.
✚ A total of 1,725oz of gold was produced.
Recovered grade was 9.8g/t gold from a feed grade of 11.2g/t gold resulting in a 88% recovery.
Basic circuit and reagent improvements have been identified which would likely boost recoveries from 88% to
+90% for future processing, including:
✚ The incorporation of gravity separation prior to leaching;
✚ Changes to the crushing and grinding processes; and
✚ A full review of the leach kinetics.
✚ Provided key cost data underpinning the pursuit of a near term high grade open cut mining operation with low
✚ High recovered gold grade confirmed potential for a significant near surface high grade component of the
Strong understanding of the Epithermal model at Agate Creek:
✚ Host rocks are Proterozoic metasediments with granite and
✚ Mineralisation occurs within the regional Robertson Fault
Zone. Generally along the boundaries or within Rhyolitic
intrusions and is strongly associated with chalcedonic
veining and brecciation.
✚ Sherwood is a low-sulphidation epithermal gold system
characterised by swarms of narrow veins
✚ Strong alteration surrounding the veins
Recent High Grade Drilling & Exploration Target Area
Select results :
o 6m @ 24.3 g/t gold from 6m, including 2m @ 59.0 g/t from
o 1m @ 61.9 g/t gold from 9m (HG27)
o 2m @ 13.2 g/t gold from 11m (HG24)
o 3m @ 9.8 g/t gold from 6m (HG29)
o 3m @ 8.7g/t gold from 16m (HG14)
o 1m @ 14.5 g/t gold from 17m; 2m @ 12g/t golf from 47m
and 3m @ 4.2g/t gold from 65m (HG10)
o 3m @ 7.7 g/t gold from 6m as well as 3m @10.7g/t gold
from 14m (HG26)
o 3m @ 9.6g/t gold from 13m (HG06)
o 1m @12.8 g/t gold from 4m, 2m @ 12.8 g/t gold from 11m
and 2m @ 5.5g/t gold from 15m (HG41)
o 1m @ 15.8 g/t gold from 25m (HG34)
o 3m @ 10.3 g/t gold from 17m and 2m @ 12.4 g/t gold from
o 2m @ 4.6 g/t gold from 32m; 2m @ 3.8 g/t gold from 38m;
5m @ 6.9 g/t gold from 64m including 2m @ 12.2 g/t gold
from 67m (HG46)
o Significant high grade gold intercept of 31m at 5.96 g/t gold
from 124m including 1m at 73g/t gold although not the
bonanza zone targeted
✚ RC drill program completed in 2015 of 4,257 metres with 69 holes drilled.
✚ Laneway has announced a follow up RC drill program of 2,500m to commence shortly to follow up the
compelling shallow high grade intercepts. Key near term objectives :
✚ Material extension of the shallow high grade trial pit mineralisation which yielded 1,572 oz of gold from a
head grade in excess of 11 g/t gold in 2014 with a view to defining a resource sufficient to support the near
term high grade open cut mining operation.
✚ Expansion of the global Resource base at both Sherwood and Sherwood West through step out holes and
identified additional targets.
✚ Testing of the southern extension of Sherwood West where the target mineralised zone remains open and
has been continuously mapped some 700m to the south of current drilling.
✚ Drilling of several highly prospective regional targets.
✚ An updated JORC Resource.
Highlighted Regional Targets
A total of 66 Regional targets have been identified so far through
geochemical sampling. Priority drill ready targets listed below. A
number of these will be drilled in the upcoming program.
Eastern Bar Creek
✚ Targeting a 10m wide 500m long weathered quartz vein open in all
directions with associated Au, Ag, Pb, Zn and Cu
✚ 5m @ 44g/t Ag & 0.13% Cu from 12m
✚ 7m @ 57.7g/t Ag; 0.18% Cu & 0.5% Zn
✚ Accompanying the above structure is a secondary 400m long
potentially en-echelon zone to the south with additional rock chips
up to 36g/t Au; 643g/t Ag; 2.4% Cu & 22.6% Pb
✚ Targeting a brecciated quartz vein showing abundant brecciation,
boxworks and fresh sulphides in places, outcropping over 300m
along strike and up to 10m wide. Rock chips up to 15.75 g/t Au have
✚ A silver-lead-copper quartz vein traceable over 500m up to 1m wide
✚ 5m @ 141g/t Ag; 0.21% Cu; 1.58% Pb & 1.64% Zn from 25m
✚ 8m @ 99g/t Ag; 0.22% Cu; 1.19% Pb & 0.47% Zn from
✚ Located along a parallel structure to the Sherwood deposit within the
Robertson Fault Zone. Strike over 2km extent of outcropping
epithermal quartz veining and alteration.
CONCLUSION- Moving toward self funding Exploration and Development
Clear Pathway to Production at Agate Creek (North Queensland)
✚ MLA process 90% completed. Mining Lease grant forecast in Q3 2016.
✚ Plan to commence mining and production in Q3 2016. High grade, near surface ore body leading to low cost
✚ Economic parameters of Gold production in Australia improving: $US Gold price stronger , AUD weaker, diesel
price lower, strong competition in contracting and mine services sector delivering competitive forecast
✚ Longer term strategy to take a portion of the cash flow from initial production to fund exploration of the large
highly prospective broader tenement footprint.
✚ Sherwood deposits are open at depth with several other advanced regional drill targets within Laneway’s
substantial tenement holding
✚ Prospective tenement position in NZ on-trend from multi-million ounce gold and silver deposits. Near term
exploration activity in NZ funded by Newcrest
✚ Minimal capital requirements through to first gold at Agate Creek.
✚ Laneway well positioned to capitalise on progressing existing projects as well as other opportunities that may
Delivering on the 2016 OBJECTIVES
FROM THE 2015 AGM:
✚ Laneway’s primary focus is on the exploration, discovery and development of gold projects focusing on known
gold producing regions.
✚ Key objectives for 2016 at Agate Creek Gold Project:
✚ Materially extend the high grade gold resource at Sherwood and Sherwood West prospects and the
global Resource beyond current 400,000 oz gold;
✚ Follow up drilling on additional regional exploration targets;
✚ Obtain grant of Mining Lease; and
✚ Bring the project into production with the objective to support a near term, low capital intensity, low
strip ratio high grade open cut mining operation via a third party processing solution.
✚ Southern Coromandel Project (NZ) has a historic non-JORC Resource with potential to be upgraded to JORC
and additional ounces delineated with modern exploration. Laneway has entered into a farm-out agreement
with Newcrest. Exploration activities funded by Newcrest.
✚ Soil Sampling (Ridge & Spur), Rock Chipping and Geological Mapping which began in August
progressing well with over 800 samples submitted for analysis
✚ Initial drill sites have been selected for Phase One drilling with the consent and approval process
started. Tenders for drilling have been received.
✚ Laneway continues to progress strategies to realise value from existing coal assets.
✚ Laneway will continue to seek new high growth potential projects, as well as where appropriate, JV’s or farmouts
to help progress existing assets.
23 April 2019
First Gold Pour from Agate Creek Gold Project
✚ First gold pour has occurred from mining of high-grade ore at Laneway Resources’ 100% owned Agate
Creek Gold Project.
✚ The first gold pour has been achieved within 10 weeks of the grant of the Mining Lease.
✚ The bullion poured has been recovered by Gravity, ILR and CIL methods from approximately 1,300
tonnes of Agate Creek ore at an average grade of approximately 15g/t gold.
✚ Three doré bars (pictured below) weighing collectively approximately 22 kg of gold and silver bullion*
were poured yesterday.
✚ The first ore from the Agate Creek Project was fed into the crushing circuit at Maroon’s Black Jack Gold
Processing Plant at Charters Towers last week.
✚ Ore is being processed pursuant to the Mining and Processing Agreement Laneway has entered into
with Maroon Gold Pty Ltd (Maroon) which allowstoll treatment of the high-grade ore through Maroon’s
Gold Processing Plant.
✚ Mining is continuing at site with ongoing transportation of ore to Maroon Gold’s Plant at Charters
✚ Laneway anticipates material positive cash flow from the mining activities at the Agate Creek high
grade project aided by recent high prices for AUD denominated gold.
Figure 1 - Gold Doré Bars containing Gold and Silver bullion*
*purity will be known after refining
The Board of Laneway Resources Limited (“Laneway” or “the Company”) (ASX:LNY) is pleased to advise that the
first gold pour took place yesterday from the mining of high-grade ore at the Sherwood deposit within the 100%
owned Agate Creek Gold Project in North Queensland.
The Company has brought the project into production quickly following the grant by the Queensland Government
Department of Natural Resources, Mines and Energy of a Mining Lease (ML100030) over the Sherwood deposit -
achieving the first gold pour within 10 weeks of the Lease being granted.
The gold pour yesterday comprised three doré bars weighing collectively approximately 22kg of gold and silver
bullion*. This bullion was recovered from gravity, ILR (Intensive Leach Reactor) and CIL (Cyanide in Leach)
extraction at Maroon’s Black Jack Processing Plant over the past four days. During this period approximately 1,300
tonnes of ore with an average head grade of approximately 15g/t gold has been crushed, milled and processed
through Maroon’s Plant. Processing rates are currently approximately 15 tonnes per hour with this rate to be
steadily increased over the coming weeks with 25 tonnes per hour being targeted. Final processing rates achieved
will be dependent on feed grades and ongoing metallurgical performance including recovery.
Mining operations commenced a fortnight ago in line with previously indicated timelines with the first ore being
trucked to Maroon’s Black Jack Gold Processing Plant at Charters Towers last week. First ore was fed into the
crushing circuit on 17 April, with processing starting soon afterwards. The mining operations are being
undertaken in the area covered by the Mining Lease (ML100030) over part of the Agate Creek Gold Project.
Mining and Transport is currently expected to continue for approximately another 10-12 weeks.
Pursuant to the Mining and Processing Agreement entered into with Maroon, the ore is being transported to and
then processed through Maroon’s wholly owned CIL processing plant. Utilising an existing processing plant has
significantly reduced the capital expenditure and time to first gold production for Laneway.
Laneway anticipates material positive cash flow this year from the mining activities at the Agate Creek high grade
project aided by recent high prices for AUD denominated gold. The expected cash flow will establish a sound
financial platform for the Company to progress its project portfolio including the Ashford Coking Coal project, its
NZ Gold assets and additional exploration appraisal of the broader Agate Creek Project area.
Planning is well advanced for further drilling programs at Agate Creek targeting further potential high grade zones
- including potential extensions of the zones currently being mined. Additional exploration will also target other
identified mineralised zones that have previously only been evaluated for potential large tonnage low grade
processing. Geological understanding gained from the current mining campaign will allow for greater targeted
drilling of the ore zones with the potential to add to the existing Global Resource.
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.
27 May 2019
Outstanding High Grade Gold Drilling Results as Mining Continues
✚ Further significant high grade gold drill intercepts achieved during follow up RC Drill Program of
1,101m at 100% owned Agate Creek Gold Project.
✚ A small RC drill program of 34 holes (1,101m) has recently been completed in and around the current
pit area to extend and further define some of the mineralized zones previously identified, that could
not be fully drilled during the November 2018 program due to terrain constraints and drill pad
access, together with some additional targets identified by in pit mapping and interpretations of ore
✚ Numerous and consistent high-grade gold intersections encountered including intersections
exceeding 100 g/t in drillholes GC219 (2m @ 125 g/t) and GC215 (1m @ 104 g/t).
✚ All assay results have now been received from this recent drill program and these results will likely
extend the overall high-grade tonnage available to be mined as part of the current mining program.
✚ Full assayed gold results >3.5 g/t can be seen in Table 1, with some of the high-grade intercepts as
• GC213 – 3m @ 34.1 g/t from 26m & 2m @ 26.2 g/t from 34m
• GC214 – 2m @ 30.5 g/t from 40m
• GC215 – 2m @ 68.9 g/t from 35m including 1m @ 104 g/t
• GC217 – 11m @ 19.8 g/t from 26m including 1m @ 85.1 g/t at 32m
• GC218 – 2m @ 48.5 g/t from 35m including 1m @ 85.5 g/t at 35m
• GC219 – 5m @ 54.8 g/t from 25m including 2m @ 125 g/t at 25m
• GC221 – 2m @ 16.3 g/t from 17m
• GC225 – 2m @ 68.8 g/t from 17m
• GC229 – 1m @ 33.5 g/t from 18m
• GC233 – 3m @ 21.8 g/t from 15m
✚ These results highlight the significant potential of the Agate Creek Project in the longer term.
✚ Gold mining and production is continuing. Unreconciled production to date is approximately 15,000t
of ore processed at an average (unreconciled) head grade of approximately 10 g/t with plant
recoveries continuing at over 98% resulting in almost 150kg of gold dore being recovered. Monthly
and project to date figures will be released following refining and reconciliation assay data return
expected in mid-June.
The Board of Laneway Resources Limited (Laneway, or the Company) (ASX:LNY) is pleased to announce the assay
results from the recently completed drilling program at the Sherwood deposit within the Agate Creek Gold Project
in North Queensland.
A small reverse circulation (RC) drill program of 34 holes (1,101m) was recently completed in and around the
current pit area to extend and further define some of the mineralized zones previously identified including several
that could not be fully drilled during the drilling program late last year due to terrain constraints and drill pad
access. Additional drill holes were added for targets identified by in pit mapping and interpretations of ore
shoots. The results of this program (outlined further in Table 1 below) has identified some further extremely high
grade zones which will now be incorporated in updated pit designs to allow these further high grade zones to be
incorporated as part of the current mining program.
This will likely increase the tonnage to be mined and processed as part of the current on-going Mining and
Processing Agreement. The current mining schedule, prior to the recent drilling, was expected to incorporate
around 50,000t of high grade ore for processing. Initial estimates now suggest a further 10-15,000 tonnes may
now be able to be mined with increased mining depths and associated updated pit designs.
Current mining and processing is progressing well at Agate Creek Mine and the Black Jack Plant with
(unreconciled) production of around 15,000t of mined ore now processed at an average (unreconciled) head
grade of approximately 10 g/t with high recoveries of over 98% continuing resulting in almost 150kg of gold dore
being recovered so far. Full monthly production for May and project to date figures will be released following
refining and reconciliation assay data return expected by mid-June.
Gold panned during the recent drilling program
These results are being incorporated into the current mine and pit design and it is expected this will result
in some minor changes to the current pit design to incorporate the wider deeper high grade zones into
the current mining period. A possible outline change of the pit in Section 7897835N looking North with
10m window North and South of Section line is shown below:
Chief Operating Officer Scott Hall commented
“These wide; high grade; continuous; mineralised zones show the potential to be upper portions of a
deeper bonanza grade feeder system, often found under epithermal gold deposits. Whilst confirming
further high grade ore for the current mining operations, these drilling results also encourage further deep
exploration on the broader project area.”
holding very nice at 1 ..go bizzell
bounced off the 1 consolidation go bizzell he is NED on stx as well
Amid so much global uncertainty and chaos, just how high can the gold price go?
Gold’s unrelenting march higher shows no signs of slowing after a plunge in the US dollar swept prices past the previous high set in 2011 and put the metal on track for even bigger gains (reports Bloomberg).
31st July 2020
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Gold’s unrelenting march higher shows no signs of slowing after a plunge in the US dollar swept prices past the previous high set in 2011 and put the metal on track for even bigger gains (reports Bloomberg).
Bullion’s surge came as a gauge of the US currency sank to the lowest in more than a year, the latest in a long line of bullish factors — including negative real rates in the US and bets the Federal Reserve will keep policy accommodative when it meets this week — that are pushing prices ever higher.
With the world facing an extended period of unprecedented economic and political turmoil, gold’s now got $US2000 in its sights. Some in the market suggest the haven could rise even beyond that.
Nascent signs of gold’s record-breaking ascent began to show in mid-2019, when the Fed signalled a readiness to cut interest rates as uncertainty — primarily about the impact of the US’s trade battles — clouded its outlook.
The rally gathered pace in early 2020 as geopolitical tensions rose and the coronavirus outbreak hurt growth worldwide, pushing governments and central banks to unleash vast amounts of stimulus, and sending real rates slumping further into negative territory.
“Strong gains are inevitable as we enter a period much like the post-GFC environment, where gold prices soared to record levels as a result of copious amounts of Fed money being pumped into the financial system,” said Gavin Wendt, senior resource analyst at MineLife Pty.
A weak dollar and negative real rates are providing further impetus. Gold may consolidate before setting its sights on $US2000 and above in coming weeks, he said.
Investment demand has been unrelenting. Holdings in gold-backed exchange-traded funds have beaten all-time highs nearly every month since late last year and inflows this year have topped the record annual total set in 2009. The additions make up roughly one-fifth of expected mine supply for the year, according to research group Metals Focus.
Gold’s been drawing investors even as equities climbed — with the exception of a sharp sell-off in March as traders liquidated bullion holdings to cover losses in other markets — and it’s US bonds that have been the key metric to watch. The metal is serving as an attractive hedge as yields on Treasuries that strip out the effects of inflation fall below zero.
It’s not just price moves that are proving historic. The virus shined a spotlight on a traditionally overlooked corner of the market — logistics. A chaotic period in March saw extreme distortions between London and New York gold prices due to an unprecedented snarl in the movement of physical metal, with the grounding of flights and refinery shutdowns sparking concerns about a shortage of bullion available in New York in time to deliver against Comex futures.
That crisis eased — there was enough gold — but the dislocation prompted CME Group, which owns Comex, to announce that it would offer a new futures contract with expanded delivery options that included 400-ounce bars, which is the size accepted in London. It later said traders will be able to deliver gold in London vaults against the new contract.
Next up for investors and a possible fillip for gold, is this week’s Fed meeting July 28-29, where officials are expected to keep interest rates near zero and debate a possible shift in its strategy.
The Fed’s path forward will be closely watched. From December 2008 to June 2011, the Fed bought $US2.3 trillion of debt and held borrowing costs near zero per cent in a bid to shore up growth, helping send bullion to a record in September 2011.
On top of historic low rates, central banks and governments have passed trillions in stimulus packages to curb the economic toll of the pandemic, and if that continues, investors will continue to buy into gold, said Nitesh Shah, London-based director of research at WisdomTree.
“Some investors out there are a little uneasy or uncertain about what this means for the long-term future,” he said. “If these stimulus packages can’t be withdrawn at some point in time when the economy can handle it, are these things going to become quite inflationary?”
Forecasts for further gains have been building even before gold’s most recent breakthrough. Bank of America has stuck with its April forecast for $US3000 gold over the next 18 months. UBS Group sees prices reaching $US2000 by end-September, global chief investment officer Mark Haefele said in a note Monday. The group has added the metal to its “most preferred asset list”.
“You simply couldn’t pick a more perfect storm of events which would allow for gold to perform,” said Steve Dunn, head of ETFs at Aberdeen Standard Investments.
“With low interest rate policies, negative real rates, super accommodative monetary policy, huge amounts of global fiscal spending, a weaker dollar, escalating US-China tensions and no clear end in sight for the coronavirus pandemic, all of the parts of the equation are coming together.”