Magmatic Resources Ltd (ASX:MAG) made significant progress in activities during the quarter ending March 31, with a notable advancement in the Myall Project alongside gold-copper exploration at the Wellington North Project.
Fortescue (ASX:FMG) partnership
A key achievement during the quarter was the execution of a farm-in and joint venture agreement with FMG Resources Pty Ltd (Fortescue), focusing on the Myall Project.
The Myall Project, covering 244 square kilometres, is strategically located along the northern extension of the Junee-Narromine Volcanic Belt, some 50 kilometres north of the world-renowned Northparkes Mine.
This area is historically significant, featuring extensive copper anomalism akin to those found at Northparkes, positioning the Myall Project as a prospective venture for further exploration and development.
Under the agreement, Fortescue has committed to investing up to A$14 million over six years, potentially acquiring a 75% joint venture interest.
The terms stipulate a minimum spend of A$3 million and at least 3,000 metres of drilling within the first two years.
Magmatic, through its wholly-owned subsidiary Modeling Resources Pty Ltd, will act as the operator throughout the initial farm-in period, which could extend up to four years.
Additionally, the establishment of an Exploration Committee between Magmatic and Fortescue is set to finalise the forward exploration work program for the project.
Wellington North work
Concurrently, exploration activities have recommenced at Magmatic’s wholly-owned Wellington North project near Alkane Resources' 15.7 million ounces gold-equivalent Boda-Kaiser discovery.
This phase of exploration includes targeted follow-ups at three key areas - Boda Southwest, Lady Ilse North and Rose Hill - all of which are known for nearby porphyry gold-copper mineralisation.
The exploration strategy encompasses a variety of techniques including soil geochemistry, aircore drilling and reverse circulation percussion drilling.
A detailed soil sampling program at the Boda Southwest Prospect is already underway, with further approvals for other target areas anticipated soon.
Finances buoyant
In addition to these operational achievements, Fortescue has invested in Magmatic Resources by subscribing for 75,946,151 shares, which helped raise A$3.71 million during the quarter.
As of the end of March 2024, Magmatic Resources was in a robust financial position, with A$4.027 million in cash reserves.