Magmatic Resources Quarterly Activities Report - 30 June 2024
MAGMATIC RESOURCES LIMITED (MAG) Share Update July 2024 Friday 26th
Magmatic Resources Reports Significant Exploration Progress
Magmatic Resources Limited (ASX: MAG) has released its quarterly activities report for the period ending 30 June 2024, detailing significant exploration progress across multiple projects and a strong financial position.
Instant Summary:
- Formation of an Exploration Committee for the Myall Project.
- Commencement of a two-phase work program for Myall.
- Resampling of historic drill holes at Myall.
- Encouraging soil sample results at Wellington North.
- Completion of an air core drilling program at Lady Ilse.
- Approvals for reverse circulation drilling at Rose Hill.
- Strong cash position with $6.335M at the end of the quarter.
Myall Project
During the quarter, an Exploration Committee was formed to direct exploration under the Myall Farm-in and Joint Venture Agreement with FMG Resources Pty Ltd (Fortescue). The Committee approved a two-phase work program for the 2024/2025 financial year. Resampling of historic core and drill chips from approximately 75 holes commenced in June, with a significant portion now submitted for reanalysis.
This resampling program aims to provide expanded geochemical and hyperspectral data coverage from holes drilled prior to 2004, aiding in the detailed design of the upcoming diamond drilling program. The diamond drilling program is expected to comprise six holes of 400-500 meters depth in the greater Corvette/Kingwood region, with most drilling to be completed by the end of the calendar year.
Wellington North Project
Results for 232 soil samples taken at Boda Southwest during the quarter highlighted encouraging copper-gold anomalism adjacent to Alkane Resources' Boda 4 Prospect. The soil program included results up to 0.92g/t gold, with further mapping and rock chip/soil sampling planned to confirm potential drill targets.
An air core drilling program comprising 64 shallow holes was completed at Lady Ilse in June, targeting untested basement rocks immediately north of existing gold-copper mineralization. Gold and copper mineralization intersected in multiple shallow holes highlighted the potential for a Boda-style porphyry system at Lady Ilse, including 6m at 0.80g/t Au & 0.15% Cu from 12m in 24WNAC0820. The drilling at Lady Ilse nearly doubled the size of the contiguous, near-surface gold and copper footprint to over 1,200 meters in length.
Parkes Project
Establishment of land access and exploration approvals over multiple target areas commenced at Parkes during the quarter. On-ground activity began this month, with initial mapping and rock chip sampling occurring at Black Ridge ahead of a planned IP survey later in the quarter. Subject to approvals, the forward program over the coming quarters is also expected to include diamond drilling at Buryan (porphyry Cu-Au) and RC drilling at McGregors (orogenic Au).
Corporate
The Company was well funded at the end of the quarter with cash at hand increasing to $6.335M, assisted by a successful placement to existing and new sophisticated and institutional investors in May to raise $3.0M (before costs), with Fortescue participating to maintain its 19.9% holding. In early July, the Company was allocated $428,000 in exploration credits as part of a successful application to the Junior Minerals Exploration Incentive (JMEI) Scheme for the 2024/2025 financial year.
The announcement of significant exploration progress and a strong financial position is likely to positively impact Magmatic Resources' stock. The formation of an Exploration Committee and the commencement of a two-phase work program at Myall demonstrate the company's commitment to advancing its projects. The encouraging results from soil and air core drilling programs at Wellington North and Lady Ilse further enhance the company's exploration potential. The strong cash position and successful placement indicate robust investor confidence and financial stability.
Investor Reaction:
Investors and analysts have reacted positively to the news, highlighting the company's strategic approach to exploration and its strong financial position. The participation of Fortescue in the placement to maintain its 19.9% holding is seen as a vote of confidence in Magmatic Resources' projects.
Conclusion:
Investors should keep an eye on the upcoming exploration activities and results, particularly the diamond drilling program at Myall and the follow-up drilling at Wellington North. Magmatic Resources' strong financial position and strategic partnerships position the company well for future growth. Subscribe to our newsletter for regular updates on Magmatic Resources and other stock market news.