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Feb 2020 - Magmatic Resources

Preparing to drill its Lady Ilse & Kingswood Porphyry Gold - Copper Targets

In January 2020, ERA visited 3 of Magmatic Resources (MAG's) NSW Projects being Wellington North, Myall and Parkes as shown in Figure 1a. This report has been based on available historical information (SLNSW, Trove and Wellington’s Oxley Museum), and presentations made by Magmatic and Alkane (ALK). MAG acquired its 4 main NSW Project areas mostly from Goldfields (GFI stopping NSW exploration, but still retaining a 12.5% holding in MAG) in 2013, with interest in MAG sky-rocketing ~ 11x from 1.8c in September 2019 to ~22c on 31 December 2019, due to its Wellington North prospects surrounding ALK’s Boda porphyry gold-copper discovery. (Note : MAG does also have some tenements in the Yamarna area of WA, that are under sale/JV consideration, and have hence been excluded from this report).

Other Key Points: :

  • All of MAG’s Project Areas contain historic goldfields of which the most prolific appears to have been Bodangora which officially produced ~230koz @ 26g/t based on records from ~1875 (mostly from 1890), yet Bodangora became overlooked in a number of the NSW history books.
  • ALK’s Boda intercept in Sept 2019 that fired up the market was 502m @ 0.48g/tAu & 0.20%Cu, which followed up May 2016s (the delay may have been due to permitting and/or enabled due to the profit generation from Tomingley) 311m @ 0.23g/tAu & 0.08%Cu; with 72m @ 0.26g/t in 1995.
  • MAG already has a number of “porphyry gold-copper-type-intercepts (long intercepts of low grade gold and copper)” amongst its prospects and projects such as Lady Ilse with a similar near surface 78m @ 0.22g/t as drilled in by MAG in Jan 2018, and Rose Hill’s 71m @ 0.30g/t & 0.43%Cu by GFI (both in Wellington North); Kingswood’s 70m @ 0.15g/tAu & 0.54%Cu and 107m @ 0.11g/t & 0.43%Cu in Myall; and Buryan’s 135m @ 0.17g/tAu & 0.29%Cu in Parkes.
  • The conventional porphyry gold-copper target theory propagated by Newcrest’s (NCMs) Cadia etc was to focus on mag highs, however with ALKs Boda and MAGs Kingswood Prospect at Myall existing in mag lows, revisions are being made to that conceptual model.
  • MAG’s current top drill-ready target is Lady Ilse (~6km SW of Boda) which has many similarities to the Boda discovery and MAG expects to diamond drill up to ~700m in MQ2020, with the target enhanced by the recent MIMDAS survey. The second priority target area is currently the Myall Project, which is expected to be reviewed by a MIMDAS survey, possibly focusing on Kingswood.
  • Magmatic has a number of drill-ready targets, and it is a case of prioritising them which may change depending on the initial Lady Ilse and possibly later Kingswood’s results, but include Rose Hill in Wellington North, SLR at Myall, the multiple targets and Buryan at Parkes, and the many underexplored historical goldfields and extensions, such as Carlisle at Moorefield, and Bodangora.
  • Written by: Keith Goode
  • Monday, 03 February 2020