Magmatic Resources has secured 100% ownership of the Weebo Gold Project in Western Australia’s prolific Yandal Greenstone Belt, positioning itself amid five major gold mines. The acquisition complements its NSW copper-gold portfolio and sets the stage for imminent drilling campaigns.
- Acquisition of 136 km² Weebo Gold Project in Tier One WA Goldfields
- Significant drill intersections at Ockerburry and Scone Stone prospects
- Consideration includes cash, shares, and performance shares tied to resource milestones
- Drilling planned for September quarter with heritage clearances secured
- Expansion of Western Operations team with experienced regional geologists
Strategic Acquisition in a Premier Gold District
Magmatic Resources Limited (ASX – MAG) has taken a decisive step to broaden its exploration footprint by acquiring the Weebo Gold Project, a strategically located asset in the heart of Western Australia’s Yandal Greenstone Belt. This region is renowned for its rich gold endowment and hosts several major mines including Darlot, Agnew–Lawlers, Bellevue, Bronzewing, and Thunderbox. The project comprises eight granted exploration licences and one prospecting licence, covering a substantial 136 square kilometres of highly prospective ground.
Robust Exploration Potential with Advanced Targets
The Weebo Project offers a compelling mix of exploration opportunities, ranging from advanced drill-defined mineralisation to surface geochemical anomalies and conceptual targets. Notably, the Ockerburry prospect extends over five strike kilometres with impressive drill results such as 4 metres at 29.9 grams per tonne gold from just 8 metres depth, and 16 metres at 2.8 grams per tonne from 52 metres. Similarly, the Scone Stone prospect boasts an 800-metre mineralised trend with intersections including 6 metres at 4.4 grams per tonne and 29 metres at 1.1 grams per tonne gold. These results underscore the project's potential to host significant new gold discoveries.
Acquisition Terms and Strategic Synergies
The purchase consideration is structured with a modest cash payment of $50,000, alongside 36 million fully paid ordinary shares and up to 14 million performance shares in Magmatic. The performance shares are contingent on the delineation of inferred JORC gold resources of 250,000 and 500,000 ounces at a minimum grade of 1.5 grams per tonne, milestones that could unlock substantial shareholder value. Additionally, a 2% net smelter royalty is payable to the vendors, with Magmatic retaining the right to buy back half of this royalty upon commencement of mining.
Upcoming Drilling and Operational Expansion
With heritage clearances already in place, Magmatic plans to initiate drilling activities in the September quarter, focusing initially on high-priority targets such as Ockerburry and Scone Stone. The company is also expanding its Western Operations team by integrating seasoned professionals including Andy Viner and Michael Jackson, both with extensive experience in the Goldfields region. This bolstered team is expected to accelerate exploration progress and enhance technical capabilities.
Complementing a Diverse Portfolio
The Weebo acquisition complements Magmatic’s existing portfolio of gold and copper projects in New South Wales, notably the Myall copper-gold project, where a joint venture with FMG Resources is underway. This diversification across two of Australia’s premier mining regions provides shareholders with exposure to both gold and copper markets, underpinning the company’s growth strategy in Tier One jurisdictions.
Bottom Line?
As Magmatic prepares to drill at Weebo, the market will watch closely for results that could redefine its growth trajectory in Australia’s gold sector.
Questions in the middle?
- Will Magmatic meet the performance share milestones to unlock full consideration value?
- How will upcoming drilling results at Ockerburry and Scone Stone influence resource estimates?
- What impact will the expanded Western Operations team have on exploration efficiency and outcomes?