Nov 6, 2024

Labyrinth Resources Hits 3m @ 26.8 g/t Au at Cheer Prospect, Comet Vale Project, Western Australia

Introduction:

Labyrinth Resources Ltd (ASX: LRL) has reported maiden reverse circulation (RC) drilling results from its Cheer Prospect within the Comet Vale Project in Western Australia, highlighted by 3m at 26.8 g/t Au from 51m.

Drill Results:

3m @ 26.8 g/t Au from 51m (confirming and infilling historic drilling) [CVEX006]
8m @ 9.7 g/t Au from 104m (extending mineralization 80m down plunge) [CVEX016]
2m @ 9.1 g/t Au from 43m (extending mineralization 40m along strike) [CVEX009]
9m @ 1.0 g/t Au from 15m [CVEX001]
13m @ 1.0 g/t Au from 49m [CVEX002]‍
6m @ 2.0 g/t Au from 119m [CVEX004]

Project Overview:

The Comet Vale Project is located north of Kalgoorlie in Western Australia. The Cheer Prospect is part of a broadly east-west shear system with over 6km of strike length, situated on granted Mining Leases approximately 1km from the sealed Goldfields Highway. The project area benefits from its proximity to established infrastructure in a premier mining jurisdiction.

Mineralization at Cheer is defined over 400m of strike and to a depth of 100m. It is hosted within basalt, associated with biotite alteration and fine sulphides in quartz veins. The system dips steeply south and remains open along strike and at depth.

Program Details:

The reported results come from 14 RC holes drilled at the Cheer Prospect, with additional holes pending laboratory analysis. Drilling intercepted gold mineralization hosted in basalt, associated with biotite alteration and fine sulphides in quartz veins. The program has confirmed an extended shallow, high-grade gold mineralization zone and demonstrated potential for further extensions.

Understanding These Results:

The high-grade intercepts, particularly 3m @ 26.8 g/t Au from 51m in CVEX006, represent significant mineralization that could potentially contribute to a future resource. The 8m @ 9.7 g/t Au from 104m in CVEX016 is noteworthy as it extends known mineralization 80m down plunge from a historic intercept.

Management Commentary:

Charles Hughes, Chief Executive Officer of Labyrinth Resources, stated:

“These maiden drilling results from Cheer are a great start to Labyrinth’s strategy of building and growing high-quality, high-grade gold resources close to transport and milling infrastructure in the Goldfields of Western Australia. Less than a month from commencing drilling we’ve received results that demonstrate the un-tapped potential at Comet Vale, they are high grade and shallow and have highlighted the extensional potential of mineralisation at Cheer and confirmed the Company’s belief that value can be extracted from the project with drilling. We plan to follow up these results with further drilling, the planning for which is underway now. We eagerly await the next round of results from Comet Vale.”

Next Steps & Catalysts:

Labyrinth is planning priority follow-up drilling at the Cheer Prospect based on these encouraging results. Additional assay results from the current program are expected in the coming weeks.

Drilling is ongoing at Comet Vale with one RC rig scheduled to continue for the remainder of the year. The rig is currently testing high-grade mineralization at the Sovereign Trend before returning to conduct further extensional drilling at Cheer.

Commodity Outlook:

Gold continues to be a sought-after commodity, with its safe-haven status supporting demand. The project's location in the Goldfields region of Western Australia, a world-class gold mining jurisdiction, provides a favorable backdrop. The proximity to existing infrastructure enhances the economic potential of any future discoveries.

Conclusion:

Labyrinth Resources' maiden drilling results at the Cheer Prospect have revealed high-grade gold mineralization, confirming the company's belief in the untapped potential of the Comet Vale Project. With mineralization open along strike and at depth, and follow-up drilling planned, the project shows promise for resource growth. Investors will be watching closely for upcoming assay results and the outcomes of planned extensional drilling.

Sources:

LRL Drill Results Announcement

Additional Figures:

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Jan 16, 2022