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April 21, 2024
Magnetic Resources NL (Magnetic or the Company) is pleased to provide its Quarterly Activities Report for the period ending 31 March 2024.
HIGHLIGHTS
Prefeasibility Study (PFS) announced 7 March 2024 show a technically and financially robust project:
- Confirms a financially attractive standalone project with low cost, high margin gold production of 720,000oz, averaging 87,000oz/year, over a 9-year Life of Mine (LOM).
- Payback period of 15 months from commencement of production.
- IRR of 85% at A$2,800/oz, increasing to 108% at A$3,100/oz.
- Total EBITDAofA$982Mat A$2,800/oz, increasing to $1,191M at $3,100/oz.
- Life of mine average C1 (operating) cost of A$1,434/oz and AISC of A$1,445/oz, including sustaining capital of $8M.
- Pre-tax NPV8 of $547M at A$2,800/oz, increasing to $690M at A$3,100/oz.
- The gold price has jumped to over $3600/oz which will increase the outstanding economics even further.
Upgraded Mineral Resources Estimate 4 March 2024 for the project area of:
- 24.9Mt @ 1.66g/t Au totalling 1.33Moz of gold at 0.5g/t cutoff.
- Increase of 7.7% in contained gold over the 24 November 2023 ASX Release.
- LJN4 contains 15.4Mt at 1.92g/t and the contained gold has risen 11% from 852,000oz to 948,200oz.
- Ongoing extension drilling continues at LJN4 with 12 diamond holes for 4900m, which is expected to result in further resource increases as the northern and southern parts are still open downdip.
After a significant intersection of 16m at 4.51g/t from 411m, which was a very large 200m step out below the current resource six deeper holes were drilled to ascertain the depth continuity in other parts of the LJN4 Deposit. Some compelling intersections were outlined.
- MLRCD826: 29.5m at 2.81 g/t from 270.5m
- MLJRCD828: 16m at 2.44g/t from 272m.
- MLJRCD829: 17m at 2.31g/t from 287m.
Managing Director George Sakalidis commented, “while we are still receiving encouragement from the deep drilling, Magnetic is committed to advancing the project to commitment stage at the earliest opportunity. A program of work has been initiated to take the project from pre-feasibility to feasibility level by the end of 2024. This program has commenced and includes”
- Front end engineering for the processing plant with a view to ordering long lead items by early 2025.
- Resource definition drilling to boost confidence in the early production years.
- Preparation of a Mining Proposal/Mine Closure Plan for DMIRS approval.
- A resource update and enhanced mine plan following recent drilling results.
- Further metallurgical testwork aimed specifically at larger sample sizes and deeper ore.
- Power supply options.
- Camp delivery options.
- Water supply options.
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.
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13 December 2023
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