Golden Targets Emerge at Lady Grey for LNR
Significant gold anomaly uncovered at Lanthanein Resources' Lady Grey Project, with drills set to turn before the end of the year
Things are falling into place for our investment Lanthanein Resources (ASX: LNR).
This morning, LNR announced the completion of an electromagnetic (EM) survey at its Lady Grey Project in Western Australia. This survey has identified several promising gold, copper, and nickel targets, including a significant 2km long gold anomaly.
This gold target coincides with geochemical data that indicates a potential gold presence near the surface.
While we waited for this good news, LNR has been busy securing the necessary approvals to drill in Q4 2024. With a historic gold mine next door that produced more than 1.3 million ounces of gold, LNR is in the right neighbourhood. If drilling is successful, this could potentially lead to a significant re-rate, instilling confidence in our investment.
And the timing couldn't be better. With the gold price at all-time highs, it's a very good time to be a gold explorer.
It’s Good to be Gold
The gold price has been on a remarkable run, recently surpassing USD$2,600 per ounce for the first time.
Several factors are driving this surge: The US Federal Reserve cutting interest rates and looking to cut further, the upcoming US election, ongoing economic uncertainty, and gold's well-known status as a haven in turbulent times.
On the supply side, we are seeing fewer significant gold discoveries being made despite over US$6 billion being spent on exploration each year since 2021.
For junior explorers like LNR, high gold prices can be a significant tailwind. They increase the potential value of any discovery and often lead to a re-rating by the market. However, as always, the drill bit needs to deliver the goods.
Key Takeaways from Today’s Announcement
High-priority gold target: The gold target on survey line 1 is one of the most exciting findings from the EM survey.
What makes it exciting is that this area matches with earlier tests that found small traces of gold at the surface.
The amount they found is 256 parts per billion, which is a good indicator that more gold could lie deeper underground, making it a promising spot for further exploration.
Location and historical success: The Lady Grey Project sits near the Bounty Gold Mine, a historically rich gold-producing site.
The historic Bounty Gold Mine produced 1.3 million ounces of gold and is in the tenement next door, adding credibility to the possibility of finding significant gold reserves.
The Lady Grey boundary outlined in yellow and black, known gold sites marked by stars, and survey lines in white on an aerial image. Source: Lanthanein Resources Copper and nickel potential: In addition to gold, the survey highlighted promising copper and nickel targets.
The survey line 6 target lies within a broad surface nickel anomaly, which means that testing at the surface has detected higher-than-normal levels of nickel across a wide area. It’s located near downhole copper geochemical results.
The conductor plate extends 600 metres long and 800 metres deep, making it a robust target for future drilling and a potential high-value discovery for the project.
The Path Forward: Approvals, then Drilling
LNR is progressing through the necessary approvals to begin drilling, with the Programme of Works (PoW) application already in motion.
The company has completed a flora and fauna survey, which is a crucial requirement before drilling can start.
“We continue to press ahead with the approvals processes of PoWs and Heritage for drilling these targets in Q4, 2024.”
- LNR Technical Director, Brian Thomas
The initial focus will be on that major gold target. Maiden drilling there will be a moment of truth for LNR, testing the thesis that this anomaly could represent a significant gold system. From there, expect a steady flow of news as the company works through its target pipeline.
It's a good turn of events for a company that initially caught our eye for its lithium potential. As we noted back in May, LNR's Godzilla lithium target was a key part of the investment thesis. However, as the company has progressed its exploration efforts, the gold, copper, and nickel potential has increasingly taken centre stage. We invested in lithium but ended up stumbling across significant gold targets—a good problem to have.
Our take: Steady progress, shaping up well
We've been following LNR closely since our initial coverage back in March, and their journey from lithium prospect to a multi-pronged exploration play has been fascinating. The EM survey results have sharpened the focus, confirming and expanding the potential we saw early on.
The pieces are now falling into place for a defining period. The gold targets are highly compelling, the timing is right, and the company is moving swiftly towards drilling.
Of course, the proof will be in the drilling. No amount of remote sensing can substitute for hard drill data. But if LNR can translate these promising targets into tangible results, it could be a significant catalyst for a re-rate.
As always, early-stage exploration is inherently risky. Nothing is guaranteed, and the odds are often long. But for investors with an appetite for risk and an eye for potential, LNR stands out as a company with the right assets, the right approach, and the right team to maximise their chances of success.