Forrestania Resources has rung up a solid 37 per cent grade increase at its Lady Lyla gold deposit near Southern Cross in Western Australia, with a new mineral resource estimate showing 922,000 tonnes at 1.41 grams per tonne (g/t) gold for 41,700 ounces.
The upgrade adds more ounces to the company’s rapidly growing global resource inventory, which recently punched through the coveted 1.5-million-ounce milestone on the back of several significant acquisitions.
Notably, the new estimate for Lady Lyla includes a maiden high-confidence indicated resource of 478,000 tonnes grading a respectable 1.66g/t gold for 25,500 ounces. This represents 61 per cent of the total resource, a significant de-risking step that moves a solid chunk of the deposit closer to being economically mineable.
The upgrade was underpinned by a recent 63-hole drill campaign that smashed out 8379 metres of reverse circulation and diamond drilling.
The program delivered some impressive high-grade hits, including a 20-metre section going 2.35g/t gold from just 26m. That intercept contained a cracking one-metre slice at an eye-catching 17.41 g/t gold from 40m.
Forrestania Resources chairman David Geraghty said: “This latest resource update at Lady Lyla has delivered a higher level of confidence in the mineral resource, in conjunction with a higher head grade. Forrestania remains diligent with drilling programs and will continue to further define the orebody with future programs.”
Geraghty added that Lady Lyla aligns with the company’s broader strategy of building scale across the Forrestania Hub to leverage the regional infrastructure, which includes multiple processing options.
The Lady Lyla deposit sits within the company’s Forrestania Hub, about 120 kilometres south of Southern Cross and is just 7 kilometres south-west of the celebrated 1-million-ounce Bounty gold mine. Forrestania believes the gold mineralisation at Lady Lyla is analogous to that at Bounty, which is also hosted by a banded iron formation.
This latest resource upgrade is another piece falling into place for Forrestania as it executes a clear strategy to build a significant WA-focused gold development business through a combination of smart acquisitions and targeted drilling.
The resource update follows the company’s recently announced takeover of fellow WA gold player Zenith Minerals, a deal that was instrumental in pushing Forrestania’s global resource inventory past the coveted 1.5-million-ounce mark.
The Zenith transaction has brought a swag of complementary gold assets into the Forrestania fold, most notably the nearby 675,000-ounce Consolidated Dulcie gold project.
The aggressive growth strategy is underpinned by the company’s 3.2 million tonne per annum Lake Johnston processing facility, which is currently being refurbished and provides a clear pathway to production.
Forrestania is clearly not wasting any time firming up the resources across its rapidly expanding portfolio. As the company edges towards its next major milestone of a two-million-ounce gold resource, it appears to be steadily building the foundations of a significant WA gold producer.
With the Lake Johnston processing plant being refurbished and high-grade drill results continuing to expand its resource base, the pieces are increasingly falling into place for a compelling growth story.
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