Magmatic Resources Limited (Magmatic) is an ASX listing mining exploration company.
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 porphyry gold-copper discoveries where the company holds an advanced target portfolio and dominant tenure position.
Northern Molong Belt an Emerging Hotspot for Gold-Copper Porphyry Discovery
Magmatic’s Wellington North Project covers a majority of the northern Molong Belt essentially surrounding the Boda porphyry gold-copper discovery made by Alkane Resources in September 2019 (ASX ALK 9/9/2019: 502m at 0.48 g/t Au and 0.20% Cu from 211m down hole and open at the end of hole).
“Alkane has just made the best porphyry exploration discovery in the Lachlan Fold Belt outside the 3 major mines, in the last 20 or so years.” (ASX AQX 19/9/2019) – John Holliday (led the Cadia-Ridgeway discovery team)
The Boda discovery has also highlighted the porphyry exploration signature in the northern Molong Belt and has had an immediate impact on the ranking of Magmatic’s exploration targets in the Wellington North Project. Several targets have been upgraded for Boda-style and Cadia East-style porphyry gold-copper mineralisation, with ongoing exploration, including MIMDAS geophysics, upgrading the prospectivity of the Lady Ilse Prospect for Cadia East-style porphyry gold-copper mineralisation.
Forthcoming drilling of a Cadia East-style gold-copper porphyry system at Lady Ilse
In December 2019, Magmatic confirmed the appointment of New South Wales porphyry specialist Mr Peter Duerden as Managing Director effective from Monday, 3 February 2020. Magmatic’s former Managing Director, Mr David Richardson, who transitioned to Executive Chairman upon Mr Duerden’s appointment, said “Peter is a leading expert on East Lachlan porphyry gold-copper systems. He led Alkane Resources’ North Molong Belt gold-copper porphyry exploration for 10 years and his work contributed significantly to Alkane’s recent Boda gold-copper porphyry discovery. In addition, Peter served as district geologist for Newcrest at Cadia Valley which provides him a unique insight for assessing the companys assets in the northern Molong Belt and wider East Lachlan.”
CMOC 2019., China Molybdenum Company Limited, http://www.cmocinternational.com/australia/
Evolution., 2018, https://evolutionmining.com.au/reservesresources/
Phillips, G N (Ed), 2017. Australian Ore Deposits (The Australasian Institute of Mining and Metallurgy: