Resource Upgrade Puts Pressure on Magnetic Resources to Secure Financing and Start Mining

Resource Upgrade Strengthens Lady Julie’s Position

Magnetic Resources NL has announced a significant upgrade to its Lady Julie Gold Project, now boasting a combined mineral resource of 39.1 million tonnes at 1.78 grams per tonne gold, containing 2.24 million ounces. Notably, over 80% of this resource is classified as Indicated, a category that signals greater geological confidence and is crucial for advancing towards mine development.

The LJN4 deposit, a key component of the project, stands out with 34.61 million tonnes at 1.83 grams per tonne, equating to 2.03 million ounces of gold. This makes LJN4 one of the largest and highest-grade undeveloped open pit gold deposits in Western Australia, underscoring its strategic importance within the region’s mining landscape.

Advancing Towards ‘Shovel Ready’ Status

Following the completion of a detailed Feasibility Study in mid-2025, Magnetic Resources has made steady progress on permitting and mine design. The company has secured approvals for three mining leases covering the project area, a critical regulatory milestone. Concurrently, the underground mine design is being updated to incorporate additional high-grade resources identified in recent drilling, with the dual aims of reducing pre-production capital expenditure and enhancing ore recovery rates.

Managing Director George Sakalidis highlighted the exceptional nature of the LJN4 orebody, noting the resource upgrade confirms previous geological interpretations and builds confidence in the project’s economic viability. He emphasised that with the feasibility and permitting phases advancing, Magnetic Resources is rapidly moving towards being “shovel ready” for development.

Ongoing Drilling Extends Resource Potential

The company’s aggressive drilling program continues to deliver promising results, with multiple thick gold intersections identified across four high-grade core zones within the LJN4 deposit. Recent diamond drilling has extended mineralisation at depth and along strike, including a potential fifth high-grade core zone south of the planned open pit. These results not only upgrade the resource but also enhance the project’s scale and grade profile.

Magnetic Resources is also engaging with mining service providers and financiers, with due diligence underway by interested parties. Engineering work is progressing on key infrastructure components such as tailings storage, water supply, and power, further underpinning the project’s readiness for development.

Financial and Corporate Updates

During the quarter, the company invested approximately $1.089 million in exploration and evaluation activities, reflecting its commitment to advancing the Lady Julie Gold Project. No substantive mining or development costs were incurred, consistent with the project’s pre-production status. Additionally, Magnetic Resources has an agreement in place for the sale of its iron ore assets, which includes a sliding scale royalty arrangement.

With the resource upgrade and permitting progress, Magnetic Resources is well positioned to unlock value from one of Western Australia’s most promising gold projects. The next phases will be critical in translating this potential into production and shareholder returns.