Magmatic Resources Limited (Magmatic) is an ASX listed gold-copper exploration company, focussed on the East Lachlan region in New South Wales.
Counter Cyclical Acquisition of Advanced Target Portfolio
In 2014, Magmatic completed a counter cyclical acquisition of an advanced gold-copper target portfolio in the East Lachlan Gold-Copper Province in New South Wales, Australia.
The acquisition formed a part of a global divestment by Gold Fields Limited and followed a major phase of target generation across four main projects (Wellington North, Parkes, Myall, Moorefield).
The East Lachlan has an endowment of more than 80 million ounces of gold and 13 million tonnes of copper (Phillips 2017). It is most famous for Newcrest’s world class porphyry gold-copper cluster at Cadia Valley, where the Cadia East Mine currently represents Australia’s largest gold mine and one of the world’s most profitable gold producers (A$1.4B free cash FY19, Newcrest 2019). In addition, the Northparkes porphyry cluster (3.8Moz Au, 3.4Mt Cu – China Molybdenum/Sumitomo, CMOC 2018) and Cowal Deposit (>11Moz Au – Evolution Mining, Evolution 2018) also represent significant long-life mining operations.
The recent Boda Discovery by Alkane Resources Ltd has highlighted the region’s potential for further Tier 1 discoveries. In particular, this discovery demonstrates the potential of the northern Molong Belt for major epithermal-porphyry gold-copper discoveries where the company holds an advanced target portfolio and dominant tenure position.
Exploring in the Northern Molong Belt an Emerging Discovery Hotspot
Magmatic’s 100%-owned Wellington North Project covers the northern extension of the Molong Volcanic Belt, located north of Australia’s largest gold producer at Cadia East (ASX:NCM) and effectively surrounding Alkane’s recent Boda gold-copper discovery (ASX:ALK).
The recent Boda gold-copper discovery by Alkane Resources Ltd (ASX ALK 9 September 2019) has highlighted the value of Magmatic’s dominant surrounding tenure position in the northern Molong Belt, in what is emerging as a significant discovery hotspot. The Boda discovery has highlighted the surface signature of epithermal-porphyry mineralisation in the area, as described in ASX ALK 15 August 2017 and has significantly upgraded Magmatic’s target portfolio for Boda-style gold-copper mineralisation (Lady Ilse District, Boda North, Boda South, Rose Hill, Ninety, Rockleigh, Mayhurst and Mayhurst East).
Drilling beneath the high grade historic Bodangora Gold Field
The Company has completed a 3D evaluation and review of the areas of historic gold production at the Bodangora Gold Field including compilation of historic underground channel sampling data from unmined material at the Dicks Reward Mine.
High grade gold mining occurred at the Bodangora Gold Field with recorded production of 230,000 ounces @ 26g/t Au between 1869-1917 (ASX MAG 17 May 2017).
Strong exploration potential exists at both the Dicks Reward and Mitchells Creek historic mines identifying down dip / plunge extension and along strike targets.
Copper Porphyry Exploration north of Northparkes Mining District
The Myall Copper-Gold Project covers the northern extension of the Junee – Narromine Volcanic Belt, located ~50km north and along strike from the Northparkes copper-gold Mining District (China Molybdenum/Sumitomo, CMOC 2019).
Multiple existing copper-gold-molybdenum intercepts, including 70m @ 0.54% Cu, 0.15g/t Au from 141m and 62m @ 0.27% Cu, 0.13g/t Au from 260m (MYACD001, ASX MAG 4 June 2017), highlight near equivalent grades to Northparkes Mine and indicate potential for a fertile porphyry cluster at Myall.
Drill ready gold targets along strike from Tomingley Gold Mine
The Parkes Project comprises two exploration licences located within the Parkes Fault Zone, approximately 25km south from Alkane’s Tomingley Gold Operations and recently defined gold resources at Roswell, 662koz (ASX ALK 54 November 2020) and San Antonio, 453koz (ASX ALK 20 April 2021). Several existing gold intersections are equivalent to early stage exploration results at Alkane’s Tomingley Deposits and require follow up, including:
- 16m at 1.22 g/t Au from 13m (MM33) McGregors (ASX MAG 17 May 2017)
- 18m at 0.72 g/t Au from 33m (MM33) McGregors (ASX MAG 17 May 2017)
- 26m at 0.55 g/t Au from 34m (MM32) McGregors (ASX MAG 17 May 2017)
- 22m at 0.79g/t Au from 45m (S1) Stockmans (ASX MAG 17 May 2017
- 12m at 1.42g/t Au from 7m (S2) Stockmans (ASX MAG 17 May 2017)