Calais Discovery Opens New Front in Myall JV; Drilling Continues as Cash Holds Strong
Magmatic Resources has reported significant progress in its Myall Project joint venture with Fortescue, including promising copper-gold mineralisation at the Calais prospect and ongoing drilling across multiple targets. The company maintains a strong cash position as it advances exploration in NSW.
- Seven diamond drill holes completed for 1824m at Myall Project targeting Corvette, Kingswood, and Calais
- Calais drillhole FMD0504 intersected 10.8m at 0.39% Cu and 0.07 g/t Au, opening a new major target area
- Drilling ongoing with follow-up hole commenced at Calais to expand mineralisation footprint
- Wellington North ground magnetic survey completed; Glenbrook Exploration Licence granted at Parkes Project
- Strong cash position of $5.723 million at quarter end; Fortescue farming in to earn up to 75% interest in Myall
Myall Project: New Horizons in Copper-Gold Exploration
Magmatic Resources Limited (ASX: MAG) has made notable strides in its Myall Project farm-in and joint venture with Fortescue’s subsidiary FMG Resources Pty Ltd. The expanded drilling program, agreed upon in 2024, has seen seven diamond holes completed for a total of 1824 metres across high-priority regional targets including Corvette, Kingswood, and notably Calais.
The standout result came from drillhole FMD0504 at Calais, which intersected 10.8 metres grading 0.39% copper and 0.07 grams per tonne gold near the end of the hole. This intersection lies within a broader 42.8-metre zone of mineralisation and is significant as it was drilled over 100 metres from the nearest historical aircore hole, targeting a coincident aeromagnetic high and a large geochemical anomaly measuring 500 by 600 metres. The mineralisation at Calais is vein-associated chalcopyrite within altered diorite, suggesting a robust porphyry copper-gold system that remains open in all directions.
Magmatic’s technical team, working closely with Fortescue, has already commenced follow-up drilling at Calais to further delineate this new target area, which could potentially rival the scale of the nearby Northparkes deposits. This discovery adds a second major focus area for the company’s exploration efforts beyond the established Corvette-Kingswood corridor, where a maiden Inferred Mineral Resource estimate of 110 million tonnes at 0.33% copper equivalent was announced in mid-2023.
Broader Exploration Progress and Strategic Tenure
Beyond Myall, Magmatic has advanced its Wellington North Project with the completion of a ground magnetic survey at Boda Southwest, aimed at refining geological targets adjacent to Alkane’s Boda gold-copper discovery. The company is also progressing a regional target re-ranking exercise to sharpen focus for future drill campaigns.
In the Parkes region, Magmatic secured the Glenbrook Exploration Licence (EL9731) in December 2024, expanding its footprint along the prospective Parkes Fault Zone. This licence, combined with adjacent tenements, positions Magmatic strongly near Alkane’s Tomingley gold operations and recent discoveries at Roswell and San Antonio. Data compilation and regional assessments are underway to guide forthcoming exploration activities.
Financial Position and JV Partnership Dynamics
Magmatic closed the March quarter with a solid cash balance of $5.723 million, underpinning its ongoing exploration programs. Exploration and evaluation expenditure for the quarter was $865,000, reflecting active drilling and survey work. Fortescue’s farm-in agreement remains a cornerstone of Magmatic’s strategy, with Fortescue committed to spending up to $14 million over six years to earn up to a 75% interest in the Myall Project. Fortescue also holds a 19.9% equity stake in Magmatic, aligning interests closely.
The partnership with Fortescue not only provides financial backing but also technical expertise, enhancing the potential for discovery and resource growth in the Myall Project area. The ongoing drilling results and expanding target portfolio suggest that Magmatic is well positioned to unlock further value in this highly prospective copper-gold belt.
Looking Ahead
As drilling continues at Calais and other targets within the Myall JV, the market will be watching closely for assay results that could confirm the scale and grade of mineralisation. Meanwhile, progress at Wellington North and Parkes projects adds depth to Magmatic’s exploration pipeline. The company’s strong cash position and strategic JV partnership provide a solid foundation for advancing these projects through 2025 and beyond.
Bottom Line?
Magmatic’s expanding drill program and new copper-gold targets at Myall signal a promising exploration phase, with Fortescue’s backing critical to unlocking value.
Questions in the middle?
- How extensive and high-grade is the mineralisation at Calais as follow-up drilling progresses?
- What are the next steps and timelines for resource updates at Corvette-Kingswood and Calais?
- How will Fortescue’s farm-in expenditure and technical input influence Magmatic’s exploration strategy and capital structure?
