Laneway Resources Ltd (ASX:LNY) has started a 3,000 metres diamond drilling program at the company’s Southern Coromandel Gold Project in the Hauraki goldfield, on the North Island of New Zealand.
The Southern Coromandel Gold Project is a joint venture between Laneway and Newcrest Mining Ltd (ASX:NCM). Newcrest will fund the initial two stages of the program to earn 80% of the project.
The Hauraki goldfield is a historic mining region that has produced in excess of 45 million ounces of gold and silver from the Karangahake and Golden Cross gold-silver mines.
Laneway has recently completed the soil sampling, geochemical analysis and induced polarisation (IP) programs at the project.
The positive results from these programs have led to several anomalies being identified, some of which were followed up with a further IP program.
The IP program was completed during March 2016 and has confirmed the extension of the corridor of mineralisation from Golden Cross through to an area south of Karangahake.
Laneway has identified five priority drill targets from the soil geochemistry and IP data.
Historic mining occurred in the project area between 1860 and 1952, with workings reaching a depth of up to 140 metres below surface.
There is significant scope for down dip and strike extensions of this mineralization throughout a 7 kilometres long prospective corridor.
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