Funding and Drilling Risks Loom as Magmatic Targets Resource Growth in 2026

Strong Drilling Momentum at Weebo Gold Project

Magmatic Resources Limited (ASX, MAG) has delivered a robust quarterly update for the period ending 31 December 2025, highlighting significant progress at its flagship Weebo Gold Project in Western Australia's Eastern Goldfields. The company completed two phases of drilling, combining Reverse Circulation (RC) and aircore (AC) methods, targeting advanced prospects including Scone Stone and Ockerburry.

Phase 1 drilling confirmed the presence of high-grade gold mineralisation within slim-line quartz-feldspar porphyry units at Scone Stone, with standout intercepts such as 5 metres at 5.24 grams per tonne (g/t) gold from 57 metres depth. Meanwhile, at Ockerburry, aircore drilling returned impressive shallow gold results, including 12 metres at 5.13 g/t from 66 metres, suggesting a substantial mineralised fault zone extending over five kilometres.

Phase 2 drilling, completed post-quarter, further reinforced these findings with RC results revealing significant downhole widths of shallow mineralisation along the 5-kilometre Ockerburry trend and the 800-metre Scone Stone trend. These results underscore the potential for both near-surface and deeper primary gold shoots, justifying ongoing infill and extensional drilling programs.

Advancing Copper-Gold Exploration at Myall JV

In New South Wales, Magmatic's wholly owned subsidiary commenced a comprehensive exploration campaign at the Myall Copper-Gold Project under a farm-in and joint venture agreement with Fortescue Metals Group (FMG). The initial 25-hole aircore program, completed during the quarter, targeted magnetic features interpreted to be prospective for Northparkes-style copper-gold porphyry mineralisation, with assay results anticipated in early 2026.

Following this, a 14-hole diamond drilling program has commenced, designed to test coincident geochemical and geophysical anomalies to depths of up to 500 metres. This phase aims to delineate sulphide mineralisation and validate conceptual targets such as Interceptor, Barina, Gemini, and Calais, which have shown promising historical intersections.

Capital Raising and Strategic Support

Magmatic secured firm commitments for a $3 million placement led by major shareholder FMG Resources Pty Ltd, increasing FMG's stake from 18.32% to 19.9%. The capital injection is earmarked primarily to accelerate exploration activities at Weebo and the East Lachlan copper-gold projects, bolstering the company's working capital position, which stood at $6.2 million at quarter-end.

Additionally, the company was awarded a $141,000 co-contribution grant from the New South Wales Government's Critical Minerals and High-Tech Metals Exploration Program. This funding supports diamond drilling at the Black Ridge Copper target, enhancing Magmatic's capacity to advance its copper exploration portfolio.

Outlook and Next Steps

Magmatic is poised to release full assay results from its Phase 2 Weebo drilling program and the Myall aircore campaign in early 2026, which will be critical in refining resource estimates and guiding future exploration strategies. The ongoing diamond drilling at Myall and the government-supported Black Ridge program further underpin the company's commitment to unlocking value across its portfolio.

With strong backing from FMG and a solid cash position, Magmatic is well-positioned to capitalise on its recent exploration successes and maintain momentum in both gold and copper-gold domains.