Magmatic Issues 25M Shares to Secure Weebo Gold Project Near Major WA Mines
Magmatic Resources has secured the Weebo Gold Project in Western Australia and reported encouraging copper-gold drill results at its Myall Project, maintaining a robust cash position of $4.7 million.
- Completed first stage acquisition of Weebo Gold Project with share and performance share issuance
- Weebo Project strategically located near five major gold mines in Western Australia
- Promising drill results at Myall Project under joint venture with Fortescue Metals Group
- Exploration expenditure of $809K for the quarter with no mining production activities
- Strong cash balance of $4.742 million as of 30 June 2025
Strategic Acquisition Bolsters Gold Portfolio
Magmatic Resources Ltd (ASX – MAG) has made a significant move in the gold exploration sector by completing the first stage of its acquisition of the Weebo Gold Project, located in the heart of Western Australia's prolific Goldfields region. The acquisition, settled on 30 June 2025, involved issuing 25.2 million fully paid ordinary shares and 19.6 million performance shares, reflecting the company's commitment to expanding its footprint in a Tier One mining jurisdiction.
The Weebo Project covers 136 square kilometres and is strategically positioned 30 kilometres southeast of Leinster, nestled within the highly mineralised southern Yandal Greenstone Belt. This tenure places Magmatic amid five major gold mines, including operations by Vault Minerals, Gold Fields, Bellevue Gold, and Northern Star Resources, underscoring the project's potential.
Advanced Targets and Promising Mineralisation
Ongoing Exploration at Myall Project
Meanwhile, Magmatic's exploration activities at the Myall Project in New South Wales continue to advance under a farm-in joint venture agreement with Fortescue Metals Group. The recent diamond drilling program has yielded encouraging results, particularly at the Calais prospect, where multiple zones of copper and gold mineralisation have been intersected. Notably, hole FMD0508 returned 11.7 metres at 0.59 grams per tonne gold and 0.05% copper, indicating the presence of a mineralised porphyry system.
The Myall Project covers a geological setting analogous to the nearby Northparkes copper-gold mine, a world-class operation. Magmatic's maiden inferred mineral resource estimate at Corvette and Kingswood prospects totals 110 million tonnes at 0.33% copper equivalent, containing substantial copper, gold, and silver metal content. The ongoing drilling program aims to expand this resource and better define the mineralisation.
Other Projects and Financial Position
While no fieldwork was conducted during the quarter at the Wellington North and Parkes Projects, internal reviews and target assessments are underway to prepare for future exploration. These projects are strategically located near significant discoveries and established mines, adding to Magmatic's portfolio strength.
Financially, Magmatic Resources remains well positioned with a closing cash balance of $4.742 million as of 30 June 2025. The company reported exploration and evaluation expenditure of $809,000 for the quarter, reflecting active investment in its growth pipeline. Payments to related parties, primarily directors' fees and salaries, amounted to $135,000.
Looking Ahead
Magmatic plans to undertake first-pass air-core drilling at several Weebo prospects, including Sholls Find, Wheel of Fortune, and Sir Samuel, where heritage clearances have been secured. Follow-up reverse circulation drilling is also anticipated at the Scone Stone and Ockerburry prospects to further delineate mineralisation. These activities will be critical in advancing the Weebo Project towards resource definition and potential development.
Bottom Line?
Magmatic’s strategic expansion and promising drill results set the stage for a pivotal growth phase in its gold and copper exploration journey.
Questions in the middle?
- What are the specific vesting conditions and timelines for the Weebo Project performance shares?
- How will Fortescue’s involvement influence the pace and scale of exploration at Myall?
- What are the next steps and timelines for resource estimation at Weebo following upcoming drilling?
