Magnetic Resources NL (ASX: MAU) – Trading Halt

Overview

Magnetic Sources (ASX:MAU) is an Australian firm, growing a portfolio of great gold initiatives within the established mining province, Laverton area, in Western Australia.

The corporate owns a 100-percent curiosity within the Hawks Nest and Woman Julie initiatives in Laverton, the Homeward Sure South venture in Leonora, and the Benjabbering venture in Julimar. The principle deposits embrace Hawks Nest 9 (HN9), Woman Julie Central (LJC), Woman Julie North 4 (LJN4), Mount Jumbo and Homeward Sure South, that are all situated in an space with well-endowed regional infrastructure, together with three processing vegetation inside 10 to 35 kilometres. These vegetation are owned by well-known operators together with Goldfields Genesis/Dacian; Anglo-Ashanti; and Genesis/Dacian.

The initiatives’ proximity to those current processing amenities provides sufficient choices to MAU for toll processing with out having to take a position hundreds of thousands of {dollars} in setting up its personal processing plant.

A number of massive deposits akin to Wallaby, Dawn Dam and Jupiter Gold are on this jurisdiction. The corporate’s initiatives are adjoining to a few of these world-class deposits. The Mt Jumbo and Hawks Nest tenements are solely 15 kilometres north of the Wallaby deposit. At each HN9 and Woman Julie, Magnetic Sources had recognized a number of thickened stacked lodes near-surface, which have some similarities to Wallaby and Dawn Dam.

LJN4, a key focus for the Laverton venture, hosts thick breccia and silica pyrite zones as much as 50 metres thick, that are additionally prevalent in Anglo Ashanti’s world-class Dawn Dam deposit, each parallel to near-surface breccia zones and vertical mineralization going downwards into a number of of their deposits. The Mau breccia zones usually carry increased grades and at the moment are being prolonged by new drilling at depth and additional to the east and northeast, doubtlessly rising the LJN4 useful resource.

In November 2023, the corporate introduced a major improve within the mineral useful resource estimates. The deposits within the Laverton and Homeward Sure space have seen a major 107-percent improve during the last report in February 2023. The up to date mixed mineral assets estimate for the entire venture space stands at 22.7 million tonnes (Mt) @ 1.69 grams per ton (g/t) gold totaling 1.24 million ounces (Moz) of gold at 0.5 g/t cutoff.

LJN4 is now, by far, the most important useful resource within the venture space, as its contained gold rose from 204,000 oz to 852,000 oz, a 317-percent improve. Extension drilling continues and is predicted to lead to additional useful resource will increase.

The importance of LJN4’s gold useful resource has not gone unnoticed, as analysis agency Argonaut has known as it a ‘sleeping big,’ noting latest drilling at LJN4 “signifies a major discovery unfolding within the Laverton area.” If MAU can replicate the latest drilling intercepts, the subsequent useful resource replace at LNJ4 might simply make it a 1-Moz deposit. This may place LJN4 as probably the greatest undeveloped gold property within the Laverton area.

Firm Highlights

• Magnetic Sources (MAU) is an Australian firm centered on gold improvement initiatives in Western Australia.
• The corporate owns a 100-percent-interest within the Hawks Nest and Woman Julie initiatives in Laverton, the Homeward Sure South venture in Leonora, and the Benjabbering venture in Julimar.
• MAU’s massive tenement positions within the Leonora and Laverton districts of Western Australia, are close to quite a few massive deposits with current mining operations and good infrastructure.
• The presence of three processing vegetation near MAU’s Laverton deposits gives scope for toll processing.
• In November 2023, the corporate introduced a 107-percent improve within the useful resource estimate for Laverton and Homeward Sure South deposits. The revised useful resource stands at 22.7 Mt @ 1.69 g/t gold totaling 1.24 Moz of gold at 0.5 g/t cutoff.
• For the Laverton venture deposits – Woman Julie North 4,Woman Julie Central and Hawks Nest 9 – early work applications, together with venture environmental, heritage and technical background research, are near completion. The intention is to submit a mining proposal in January 2024.
• In October 2023, the corporate introduced the completion of a AU$4.8-million personal placement. The corporate is now absolutely funded with AU$7 million money to aggressively advance to the subsequent stage of improvement.
• The corporate’s extremely skilled senior management staff has a confirmed monitor file to capitalize on the excessive useful resource potential of its initiatives.

MAU has 179 sq. kilometres. of potential exploration tenements within the Laverton area comprising three predominant deposits – Hawks Nest 9 (HN9), Woman Julie Central (LJC) and Woman Julie North 4 (LJN4). All are 100-percent-owned tenements and inside 20 to 30 kilometres of three main gold camps collectively internet hosting greater than 25 Moz of gold useful resource – Granny Smith (owned by Goldfields Australia), Jupiter (owned by Dacian Gold) and Dawn Dam (owned by AngloGold Ashanti). Within the Laverton Mission, intensive drilling applications have been accomplished with 1,898 RC/DD holes for 147,943 metres with additional deeper drilling now deliberate.

MAU’s up to date useful resource estimate stands at 10.4 Mt indicated @ 1.74 g/t gold containing 584,400 oz and 12.2 Mt inferred @ 1.65 g/t gold containing 651,300 oz for a complete of twenty-two.7 Mt @ 1.69 g/t gold, containing 1.24 Moz at 0.5g/t cutoff. The depth of drilling averages solely 79 metres on all initiatives. Word that these estimates embrace the Homeward Sure South venture as properly. The invention value for all these assets may be very low at $24/ounce.

Early work applications have begun at these deposits and all approvals are anticipated by December 2023. MAU goals to submit a mining proposal to DMIRS in late January 2024. Blue Cap Mining helps with all key approvals and assessing the economics of the Laverton Mission.

Hawks Nest 9: The HN9 (indicated and inferred) useful resource is estimated at 3.2 Mt at 1.22 g/t gold for 123,000 oz contained inside three predominant zones inside a 2-kilometre by 200-metre-wide space and is basically throughout the indicated class (63 p.c). Widespread floor and shallow east-dipping lodes are current within the venture space.

Woman Julie Central: The Woman Julie Central (indicated and inferred) useful resource is estimated at 1.33 Mt at 1.68 g/t gold for 72,200 oz, overlaying a 350-metre by 200-metre space. Almost 59 p.c of the useful resource falls within the indicated class.

Woman Julie North 4: LJN4 is by far the most important useful resource within the venture space. The useful resource (indicated and inferred) is estimated at 13.1 Mt at 2.20 g/t gold for 852,000 oz, overlaying an 800-metre by 200-metre space, and is open down dip and to the east, which augers properly for the potential measurement. This useful resource is partly within the indicated class (52 p.c). Thick breccia silica pyrite intersections have now been outlined over a 250-metre size within the central and southern a part of LJN4, that are similar to that discovered within the world-class Dawn Dam deposit. These zones containing drilling holes (MLJRC789, MLJRC779 and MLJRC679) at the moment are being prolonged by new drilling at depth and additional to the east and northeast. This gives sturdy potential to develop the LJN4 useful resource. A 1,390-metre diamond and a 2,555-metre RC program have began and will probably be scoping out extensions each to the east and northeast with holes deliberate between 400-metre to 550-metre depth holes.

Woman Julie North 4 plan exhibiting useful resource block grades and drill sections

A number of the excellent intersections within the 250-metre zone embrace:

• 120 metres at 2.68 g/t from 152 metres in drill gap MLJRC789,
• 111 metres at 1.76 g/t from 173 metres in drill gap MLJRC779,
• 96 metres at 1.23 g/t from 54 metres in drill gap MLJRC679,
• 45 metres at 2.65 g/t from 130 metres in drill gap MLJDD015,
• 52 metres at 1.14 g/t from 208 metres in drill gap MLJRC790 ,
• 56 metres at 1.37 g/t from 192 metres in drill gap MLJRC801

That is an thrilling time for the corporate, having introduced an expanded mineral useful resource in November 2023 and now seeking to additional improve the dimensions of the LJN4 useful resource by additional drill testing the thickened high-grade breccia zone and continuation at depth and to the east.

Chatterbox Shear Zone

The Chatterbox shear zone is a fancy north to northeast-trending, east-dipping structural hall that covers 32 kilometres extending from Magnetic Sources’ southern boundary at Mt Jumbo and thru LJN4 and as far north because the Beasley Creek gold deposit on Magnetic’s northeast boundary. Importantly, this shear zone is carefully related to gold mineralisation at a number of areas alongside its size together with MAU’s LJN4 and Mt Jumbo deposit. This shear is gold-rich and gold deposits additional north of MAU’s tenements comprise the Beasley Creek and Apollo deposits and are interpreted to increase south in direction of the world-class Wallaby deposit.

Julimar Lookalike Initiatives

It contains six separate initiatives, together with Benjabbering, Trayning, Trayning West, Goddard, Koorda and Korrelocking, all of that are 100-percent held by the corporate. These are nickel-copper-PGE (platinum group components) initiatives situated 90 kilometres to 150 kilometres northeast of Chalice Gold Mines’ Julimar nickel-lead discovery. These initiatives had been chosen based mostly on aeromagnetic interpretation after noting the structural setting of the Julimar advanced and the Gonneville mineralized discrete magnetic nickel-copper-PGE physique.

The 112-square-kilometre Benjabbering venture has a big 25-kilometre-long aeromagnetic sample similar to the Julimar. A number of thickened zones within the space might symbolize attainable feeder areas for potential nickel-copper-PGE mineralization. Each the Trayning and Korrelocking Initiatives have a 2-kilometre discrete magnetic goal potential for uncommon earth components.

Administration Staff

George Sakalidis – Managing Director

George Sakalidis has been the founding director and shareholder of the corporate since its inception in 2006. He brings greater than 30 years of expertise in growing early-stage pure useful resource initiatives and bringing the initiatives to manufacturing. He’s skilled in varied commodities together with gold, diamond, base metals and mineral sands. He has been related to a number of vital mineral discoveries in Western Australia, together with the Three Rivers and Rose gold deposits, the Blackmans gold deposit, the Dongara Mineral Sands Deposits, the Boonanarring, Gingin South, and the Hyperion Mineral Sands Deposits. He has held a number of directorships in ASX-listed firms, akin to Picture Sources and Meteoric Sources. Furthermore, he’s a founding director of ASX-listed firms Emu and Potash West. He holds an honours diploma in geology and geophysics from the College of Sydney.

Eric Lim – Non-Government Chairman

Eric Lim holds an MBA diploma from the Kellogg Faculty of Administration and a Bachelor of Accounting from the Nanyang Technological College of Singapore. He’s a global funding banker, who constructed his profession in main monetary establishments in Southeast Asia. He has served in a number of senior roles at UOB, Normal Chartered Financial institution, OCBC Financial institution and Basic Electrical Capital.

Chan Hian Siang – Non-Government Director

Chan Hian Siang holds a Bachelor of Arts (economics) from York College in Toronto, Canada, and a Grasp of Enterprise Administration from McGill College, Montreal, Canada. He’s additionally a council member of the Singapore Chinese language Chamber of Commerce and Business. He’s the founder, govt director and CEO of SP Chemical compounds in Singapore. He has additionally been related to Asiawide Holdings and Asian-American Service provider Financial institution.

Ben Donovan – Non-Government Director and CFO

Ben Donovon brings in-depth expertise within the areas of compliance, company governance, rules and capital markets. He’s at present a director and firm secretary of a number of ASX-listed and public unlisted firms concerned within the useful resource and know-how industries. He was a senior adviser on the Australian Securities Alternate in Perth for practically three years, together with as a member of the ASX JORC Committee.

This text was written in collaboration with Couloir Capital.