Labyrinth Resources renews focus on Comet Vale project in Australia as Canadian sale progresses

Sunday, April 21, 2024 07:00 PM | TheNewsWire via QuoteMedia

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Labyrinth Resources Ltd (ASX:LRL) CEO Jennifer Neild, highlights the company’s current operational strategy and future prospects in an interview with Proactive's Stephen Gunnion.

ASX-listed Labyrinth Resources manages two mining assets: the Labyrinth mine in Canada and the Comet Vale mine in Western Australia. The Canadian site, notable for its 500,000-ounce gold resource at an average of five grammes per tonne, is being sold, which will add approximately A$5.3 million (US$3.5 million) to the company’s finances. This sale will enable further exploration at Comet Vale, which ceased mining in 2020 but shows promise for substantial gold deposits, indicated by previous exploration results and historical mining activity.

The sale proceeds will fund exploration activities aimed at expanding and extending the known resources at Comet Vale, particularly given the high gold prices and the favourable exchange rate impacting Australian dollars.

Neild also discussed the company's transition from mining to exploration, focusing on potential new sites and high-grade ore opportunities in both open-pit and underground contexts.

Investors can expect more consistent news flow in the future, with immediate updates likely as the sale concludes and exploration initiatives commence. Neild emphasised the geological potential of the area, citing recent assessments and historical data supporting the likelihood of significant gold presence.