Magnetic Resources Expands Lady Julie Gold Project to 2.14Moz with DFS on Horizon

Resource Growth and Project Scale

Magnetic Resources NL (ASX – MAU) has announced a substantial upgrade to its Lady Julie Gold Project resource, now totaling 35.7 million tonnes at an average grade of 1.86 grams per tonne gold, equating to 2.14 million ounces of contained gold. The standout contributor to this increase is the Lady Julie North 4 deposit, which alone has grown to 31.2 million tonnes at 1.93 grams per tonne for 1.94 million ounces. This marks a remarkable expansion since 2022, reflecting the company’s successful drilling campaigns and resource conversion efforts.

Beyond Lady Julie North 4, the broader Laverton region portfolio has also expanded, with total resources rising to 40.7 million tonnes at 1.77 grams per tonne for 2.32 million ounces. This positions Magnetic Resources as a significant player in one of Australia’s most prolific gold belts, benefiting from proximity to established mining infrastructure and a supportive regulatory environment.

Economic Viability and Upcoming Milestones

The project’s economic credentials were reinforced in the August 2024 Pre-Feasibility Study (PFS), which demonstrated a compelling pre-tax net present value (NPV) of A$925 million and an internal rate of return (IRR) of 135%, based on a conservative gold price assumption of A$3,200 per ounce. The PFS envisaged an open pit mining scenario delivering an average annual production of 104,000 ounces over an eight-year life of mine, with an all-in sustaining cost (AISC) of A$1,386 per ounce.

Looking ahead, Magnetic Resources plans to release a Definitive Feasibility Study (DFS) in the second quarter of 2025. This study will incorporate an underground mining component, potentially unlocking further value from the resource base. The company’s ongoing drilling program aims to extend high-grade zones at depth, with mineralisation open below 1,000 metres, suggesting significant upside potential beyond the current resource estimate.

Strategic Location and Sustainability Focus

Strategically located near key infrastructure hubs such as Gold Fields’ Granny Smith and Genesis Minerals’ Mt Morgans operations, the Lady Julie Gold Project benefits from under-utilised processing capacity and well-established transport links. This infrastructure advantage is expected to support a low-cost development pathway and expedite the project’s progression towards production, targeted for mid-2026.

Magnetic Resources also emphasises environmental, social, and governance (ESG) principles in its development plans. The project incorporates innovative tailings management, solar and hybrid power generation to reduce carbon emissions, and prioritises local community engagement and supplier participation. These initiatives align with broader industry trends towards sustainable mining practices and responsible resource development.

Market Context and Investor Implications

The gold price environment has been supportive, with spot prices recently reaching around A$4,850 per ounce, well above the PFS assumptions. This price uplift enhances the project’s economic outlook and could translate into improved returns once the DFS is finalised. Investors will be watching closely for the DFS release and further drilling results, which could provide additional resource upgrades and refine the project’s development strategy.

Magnetic Resources’ management team, led by founder and Managing Director George Sakalidis, brings extensive experience in exploration and project development, underpinning confidence in the company’s ability to advance Lady Julie towards production. The company’s market capitalisation of approximately A$421 million and enterprise value of A$413 million reflect growing investor interest in its high-grade, low-cost gold assets.