LCL step out drilling delivers more gold mineralisation.

Our gold Investment LCL Resources (ASX: LCL) just hit more gold at its Kusi project in the PNG.

When we last wrote about LCL we touched on the visible gold intercepts in drillhole 5 from the company’s current drill program.

LCL had just delivered a 52m intercept with gold grades of ~3.65g/t and it looked like a similarly strong result could come from hole no.5 as well.

Today, LCL backed up the visible gold intercepts with assays from hole no.5 delivering:

• 77.9m with gold grades of 1.53g/t from depths of 118m - inside the intercept LCL also hit higher grade sections with grades measuring up to 5.15g/t gold.

Here is why we think the result is particularly interesting:

1). First drillhole with relatively high copper grades at Kusi -

LCL made mention of the ~13m intercept where assays returned 0.14% copper grades.

On its own the copper grades are relatively low BUT it's more about what the presence of copper tells us rather than the grade of mineralisation.

The presence of copper tells us that the company is getting closer to a potential source and/or higher grade part of the gold structure.

The copper could be the first hint at a potential gold-copper porphyry system underneath the gold mineralisation.

Below is our visual representation of what that would look like:

2). Strike length for the project is now 600m (North to South).

Another major takeaway for us from hole no.5 is that it was a step-out hole drilled ~150m to the north.

The hole was a lot riskier than the previous holes which were more about confirming historic drill data.

Instead hole no.5 has now shown that LCL’s gold structure does in fact extend to the north AND is getting bigger in that direction.

Now the project sits on a strike length of ~600m (North to South).

3). All five drillholes hitting gold intercepts measuring >50 gram-metres -

So far LCL has managed to hit over 50 gram-metres across all five of its drillholes.

Ultimately, gram metres matter because it determines how much gold is being found for every metre of intercept - think of it as a standardised form of grading the thickness and grade of an intercept.

High gram-metres can be an early sign that there is potential for a discovery to host a large resource.

The comments from LCL’s Principal Geologist, John Dobe are interesting considering he worked for one of the world’s largest gold miners Barrick Gold and has probably seen some of the best gold drill intercepts out there in the market right now.

Dobe’s comments on the gram-metres was as follows “A metal factor exceeding 50gm gold from early stage drilling is very exciting and considered a drill result worthy of follow-up drilling. That every hole we have drilled exceeds this marker, with some reaching nearly 200gm, is a testament to the compelling nature of this developing discovery”.

LCL also released a video of Dobe commenting on the results which can be viewed here:

What’s next for LCL?

• 🔄 Drilling at the Kusi target - LCL has ~18 holes planned for a total of ~3,000m of drilling. Interestingly, in today’s announcement LCL mentioned that the drilling will focus on more step out holes.
• 🔄 Fieldwork across other PNG projects - Fieldwork across copper/gold and nickel targets.
• 🔄 Joint Venture discussions - Potential farm-out/JV across LCL’s project portfolio.

To see what’s next for LCL in more detail check out our last note here: What’s next for LCL in PNG?