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Magnetic Resources NL (ASX:MAU) (Magnetic or the Company) is pleased to announce that LJN4 northern zone grows to over 600m down plunge.
- The 400m northern part of the 750m long LJN4 deposit, has shown after a number of deep drill holes, that it plunges to the SE and is much larger than previously estimated (Figure 1). This northern zone by definition is associated with strong silica and green fuchsite, is also bigger in size than the southern silica pyrite and breccia zone. The dimension of this impressive northern zone is at least 600m down the SE plunge direction, at least 650m down dip and up to 200m long. Additionally it is still open in the down dip and down plunge directions. Deeper drill holes in progress, MLJDD054 and MLJDD055 are designed to test for further down dip extensions by 150m and 100m respectively. This zone keeps expanding and has already grown by 300m since our previous ASX release May 10, 2024(Figure 1).
- These impressive intersections continue, MLJDD048 has 25m at 3.86g/t from 386m, which was a very large 200m step out below MLJRC804 of 20m at 2.76g/t from 243m depth (Figure 2). An infill hole within this cross section MLJDD042 has also intersected 25m of fuchsite alteration from 315-340m and results are pending.
- MLJDD044 intersected 16m at 1.99g/t from 359m and 13m at 2.02g/t from 393m this is all within the green fuchsite northern zone. MLJDD039 which is a 250m down dip step out, has also intersected 26m of green fuchsite alteration. We are also waiting on these results (Figure 3).
- In addition, the assays are pending for a further 5 DDH diamond drillholes. MLJDD042 extended from 119 to 381m, MLJDD047, 50, 51 and 52 and 7 RC drillholes totalling 823m (MLJRC866-872). Diamond holes MLJDD054 and 55 are in progress and MLJDD049, 56-58 are planned.
- These intersections in MLJDD039, 44 and 48 are far below the open pit from our PFS study (ASX release 7 March 2024) and are also not included in our current resource, this auger well for the enlargement of the resource, increasing both the potential size of the open pit and now for the first time looking at the underground mining potential of LJN4. An updated economic study is planned.
- As described in the 5 March 2024 ASX release there was a 7.7% increase in overall resource in the Laverton Project to 24.9Mt @1.66g/t totalling 1.33moz of gold at 0.5g/t cut off and LJN4 has increased 11% to 948,200 oz (Table 1). Due to the promising enlargement of the northern zone, we have commenced a resource upgrade.
- Interestingly, similarly to other world class multi- million-dollar deposits in the Laverton region, we have already identified 8 stacked lodes in the central part of LJN4. We have now completed a 714m hole below these stacked lodes and results are pending.
The central and northern part of the 750m long LJN4 deposit has been drilled with very promising results. Highlights of this drilling are shown in Table 4, Figures 1-5.
Figure 1. Composite Inclined Longitudinal Projection of LJN4 in gram-metres. Highlighting continuous mineralisation over the whole 750m length, being open at depth in the central area and showing a 600m long SE plunging zone. New drilled holes awaiting assays (in blue) and further planned holes (in yellow).
Figure 2. Cross section for LJN4 northern area showing high-grade dipping gold zone containing resource model outline and MLJDD048 being a down dip extension of 130m with intense fuchsite alteration.
Figure 3. Composite section for LJN4 central area showing high-grade dipping gold zone containing resource model outline and MLJDD039,44 and planned 54 being part of a very large 650m interpreted down dip mineralised zone.
Figure 4. Cross section for LJN4 northern area showing high-grade dipping gold zone containing resource model outline and MLJDD045 being a down dip extension of over 100m with intense fuchsite alteration and a planned 150m down dip extension with MLJDD056
Figure 5. The Lady Julie North 4 deposit has numerous significant thick intersections from the latest drill programme (yellow large rectangular label) and previous drilling (white label) with maximum gold projected to surface and planned deeper drillholes (in yellow).
The follow up deeper diamond holes have tested and are looking to extend up to two and in some cases eight, stacked lodes mainly found in the central parts of LJN4. Hole MLJDD053 is a 714m deep hole and is designed to investigate for further stacked lodes below the current bottom stacked lode. Many of these are outside the existing resource and have potential for the enlargement of the LJN4 (Indicated and Inferred) of 15.4mt at 1.92g/t for 948,200oz at a 0.5g/t cutoff (Table 1).
Click here for the full ASX Release
This article includes content from Magnetic Resources NL, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
MAU:AU
OPINION — Goldenomics 103: Gold Protects and Performs
By Darren Brady Nelson
US President Donald Trump’s “Liberation Day” tariffs certainly caused quite the stir in the markets on April 2.
Gold dropped about 6 percent, and silver 12 percent. A week later, a pause was announced, which ended on August 1. Gold and silver have since risen approximately 11 percent and 24 percent, respectively.
Six month gold and silver price performance.
Source: Trading Economics (gold) and (silver).
Unless you are a professional, or even amateur, trader, it is best to look at gold and silver investment with a perspective of years or decades, rather than just days, weeks or even months. Since the start of the COVID-19 panic in March 2020, gold and silver have exploded 123 percent and 192 percent.
10 year gold and silver price performance.
Source: Trading Economics (gold) and (silver).
In the shorter term, the gold price is driven by what economist John Maynard Keynes called “animal spirits.” In the longer term, it is driven by “monetary spirits.” And not just as protection, but also for performance. The Presidential Gold Guide highlights both in chapters four and five.
Source: Fisher Liberty Gold.
Gold unsurprisingly protects
Economist and investor Mark Skousen has wisely noted that: “Since we left the gold standard in 1971, both gold and silver have become superior inflation hedges.” Gold has more than countered the results of inflation, as measured by CPI, and the drivers of inflation, as measured by M3.
And the numbers back that up. The Gold Protects chart below compares the gold price, CPI and M3 in terms of cumulative growth of each from 1971 to 2025. That is throughout the whole era of gold as an investment, which officially started in 1974 once private ownership was restored.
During this era, gold grew by 541 percent, CPI by 214 percent and M3 by 384 percent. Annual average growth for gold was 10 percent, CPI at 4 percent and M3 at 7 percent. Maximums were 92 percent, 14 percent and 29 percent, respectively. CPI only failed to grow twice, ie. 0 percent in 2009 and 2015. M3 decreased twice, by -4 percent in 2023 and -6 percent in 2024.
Gold surprisingly performs
The highly respected In Gold We Trust (IGWT) report states: “When dealing with the specific level of gold allocation, it is advisable to differentiate between safe-haven gold and performance gold. The Big Long strategy emphasizes the potential of performance gold in the coming years.”
IGWT thus recommends an investment portfolio "rule of thumb" that includes 15 percent in “safe-haven gold” and 10 percent in “performance gold.” The Gold Performs chart below compares gold price, S&P 500 and nominal GDP in terms of cumulative growth of each from 1971 to 2025.
Gold grew by 541 percent, the S&P 500 by 484 percent and GDP by 339 percent. Annual average growth for gold was 10 percent, with the S&P 500 at 9 percent and GDP at 6 percent. Maximums were 92 percent, 45 percent and 14 percent, respectively. Gold did have a higher standard deviation of 27 percent, compared to 17 percent for the S&P 500 and 3 percent for GDP.
Animal and monetary spirits
Gold protects as a hedge or safe haven, not just from inflation, but from the flip side of that same coin of the boom-bust cycle. Both are driven, in the longer term, not by “animal spirits,” but by “monetary spirits.”
Inflation is when money inflation has a widespread impact as price inflation. A bubble is when money increases have a more concentrated impact such as in certain asset values. The bubble eventually bursts when “monetary spirits” are finally reined in by monetary realities.
I say “monetary spirits” because of the role of fiat money, as indicated by, say, M3. When money supply outstrips money demand in a localized way, then that is a bubble, and when in a general way, that is inflation.
The former shows up in certain asset, wholesale and/or producer prices, whilst the latter shows up in CPI. Asset prices include the S&P 500. But nominal GDP is also "ginned up" as it is ultimately a price times quantity measure as well. Price is expressed in money terms.
Conclusion
Gold can have ups and downs, as standard deviation indicates, due to the “animal spirits” of fear and uncertainty, that tend to be daily, weekly or monthly. Yet gold both protects and performs due to the “monetary spirits” of inflation and boom-bust, which tend to be decennially.
In particular, gold performs when the S&P 500 does not, like in the aftermaths of the 2001/2002 dot-com collapse, the 2008/2009 global financial crisis and 2020/2021 COVID-19 lockdowns.
Therefore, when it comes to gold, “follow the money” of central bank “money printing” and fractional reserve bank “fountain pen money,” for both superior inflation protection and boom-bust performance.
And besides, Skousen rightly "begged the question" as follows: “Gold and Silver have always had value, never gone to zero. Can you say the same for stocks and bonds?”
About Darren Brady Nelson
Darren Brady Nelson is chief economist with Fisher Liberty Gold and policy advisor to The Heartland Institute. He previously was economic advisor to Australian Senator Malcolm Roberts. He authored the Ten Principles of Regulation and Reform, and the CPI-X approach to budget cuts.
Click here to read Goldenomics 101: Follow the Money, and here to read Goldenomics 102: The Shadow Price of Gold.
