Magmatic Resources Gains Momentum In March Quarter With Fortescue JV

Magmatic Resources Ltd (ASX: MAG) achieved a milestone during the March quarter as it continued to advance its copper-gold projects in New South Wales.

The key achievement was the execution of a farm-in and joint venture agreement with a subsidiary of Fortescue Ltd (ASX: FMG), focusing on the Myall Project.

Myall Project

The 244-square-kilometre Myall Project is located ~50km north along strike of the Evolution/Sumitomo-owned Northparkes Mine, a world-class porphyry copper-gold operation.

Myall also hosts significant porphyry-associated copper-gold mineralisation within a similar geological setting to Northparkes.

Farm-in with Fortescue

Fortescue will spend up to $14M over six years to earn up to 75% joint venture interest in the project.

The agreement includes a minimum required expenditure of $3M and a minimum of 3,000 metres of drilling to be completed in the first two years.

Magmatic will act as operator for the initial earn-in period of up to four years and will be entitled to a 10% operator’s fee.

Wellington North Project

Magmatic’s 100% owned Wellington North Project is located north of Australia’s largest gold producer at Cadia (Newmont).

It is also immediately adjacent to Alkane’s Boda porphyry gold-copper discovery (ASX: ALK).

The Wellington North Project includes the historic Bodangora Gold Field, where 230,000 ounces at ~26g/t Au were produced between 1869-1917.

Follow-up exploration

During the quarter Magmatic’s technical team identified three prospect areas at Wellington North for follow-up exploration work.

Exploration will comprise a combination soil geochemistry, air core drilling and reverse circulation (RC) percussion drilling.

A close-spaced soil sampling program at the Boda Southwest Prospect has now started and approvals for work in the other targets areas are expected shortly.

Well funded

In parallel with the Myall farm-in agreement, Fortescue showed further support by participating in Magmatic’s share placement, raising $3.71 million.

The company was well funded at the end of the March quarter with $4.027 million cash at hand.

 

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