Laneway Resources Ltd (ASX: LNY) has told shareholders it believes significant epithermal gold-silver targets still exist on its permit holdings in the Karangahake region of New Zealand’s North Island.
The company’s FY2018 annual report detailed the work undertaken in the past year, with a strong focus on the Karangahake-Jubilee-Golden Cross trend which has historically produced about 4.4 million ounces of gold-silver bullion.
Laneway continued exploration in the region after joint venture partner Newcrest Mining Ltd lost interest in the New Zealand scene and withdrew from this joint venture and other work on the North Island.
The annual report said Laneway completed infill geochemical sampling at Komata South and at Jubilee, along with a diamond drill hole following up results at Komata South. Assay results were low-grade, indicating that while the structure may be present mineralisation was “likely eroded.” No follow up on this target was planned.
Laneway said the Jubilee prospect in the Waitekauri Valley had produced a recorded 33,753 oz of bullion from less than 23,000 tonnes of ore, between 1870 and 1930. First modern exploration was in 1968 when Consolidated Silver re-opened and refurbished the main Jubilee decline, but financial issues halted progress.
Then in the 1980s Cyprus Minerals NZ assessed both surface and underground targets and had channel and pilar samples assaying up to 63 grams/tonne gold.
Laneway said only 10 holes have been drilled over Jubilee’s 500 metres strike extent and only three of those went to 200m depth.
Jubilee considered the Jubilee system cannot be viewed as drill tested and still has “significant upside.”
Laneway plans an eight hole drilling programme for about 3,000 metres in the current year.