Magmatic Launches 3,000m Diamond Drilling and Expands Parkes Footprint

• Expanded 3,000m diamond drilling program commenced at Myall targeting Corvette and Kingswood
• Encouraging gold and copper anomalies identified at Wellington North and Parkes soil sampling programs
• New Glenbrook exploration licence granted, expanding Parkes Project footprint
• Managing Director Adam Mckinnon replaced by David Richardson; board strengthened with two new directors
• Strong cash position of $6.014 million maintained at quarter-end

Myall Project Drilling Expansion

Magmatic Resources has greenlit an expanded diamond drilling program at its Myall Project under the Farm-in and Joint Venture agreement with Fortescue. The Exploration Committee approved 13 diamond holes totaling approximately 3,000 metres, focusing on high-priority targets including Corvette and Kingswood. Drilling commenced late in the quarter, targeting extensions immediately south and west of the existing Mineral Resource Estimate (MRE), which currently stands at 110 million tonnes at 0.27% copper and 0.07 grams per tonne gold.

This ramp-up reflects confidence in the project's potential, situated along strike from the world-class Northparkes copper-gold mine. Fortescue’s commitment to spend up to $14 million over six years to earn a 75% interest underscores the strategic importance of Myall in the region.

Positive Soil Sampling at Wellington North and Parkes

At the Wellington North Project, Magmatic completed a 409-sample soil program at Boda Southwest, revealing a compelling gold anomaly west of Alkane Resources’ Boda 4 Prospect. The best gold assay hit 4.7 grams per tonne, with copper peaking at 201 ppm. Meanwhile, a four-hole reverse circulation drilling program at Rose Hill intersected sporadic mineralisation, including gold grades up to 6.1 g/t and copper up to 0.46%, indicating promising but variable mineralisation.

In the Parkes Project, soil sampling at the Black Ridge prospect returned encouraging copper-gold anomalies aligned with previously identified induced polarisation (IP) features. The highest copper-in-soil values reached 161 ppm, with gold up to 0.35 ppm. The recent grant of the Glenbrook EL9731 licence, covering 101.4 km2 adjacent to Magmatic’s existing tenements, further consolidates the company’s dominant position in the Parkes Fault Zone, a prolific gold-copper corridor.

Corporate Restructuring and Financial Position

The quarter was marked by significant leadership changes. Managing Director Adam Mckinnon resigned and was succeeded by Executive Chairman David Richardson, who in turn stepped down from his executive role to become Non-Executive Chairman. David Berrie assumed the Non-Executive Chairman position, and the board was bolstered by the appointments of Malcolm Norris and Christine Nicolau, the latter representing Fortescue’s interests.

Magmatic maintained a robust cash balance of $6.014 million at the end of December 2024, supporting ongoing exploration and corporate activities. The company also issued 2.5 million unlisted options under its Employee Incentive Scheme, signaling a focus on retaining and motivating key personnel during this pivotal phase.

Strategic Outlook

Magmatic’s intensified drilling at Myall, combined with encouraging geochemical results from Wellington North and Parkes, positions the company well to advance its exploration pipeline. The strategic partnership with Fortescue and recent board enhancements suggest a concerted effort to accelerate value creation. However, the sporadic nature of mineralisation at Rose Hill and the early stage of some targets warrant cautious optimism as further drilling and analysis unfold.

Bottom Line?

With drilling underway and a refreshed leadership team, Magmatic Resources is poised to unlock value across its NSW projects, but upcoming assay results will be critical to validate early promise.

Questions in the middle?

• Will the expanded Myall drilling confirm extensions to the existing resource and attract further investment?
• How will the new board members influence Magmatic’s strategic direction and operational execution?
• What are the next steps for advancing targets identified in the Wellington North and Parkes projects?