Magmatic Resources quick to deliver promising exploration results
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Promising drilling results released by Magmatic Resources (ASX: MAG) in relation to its Carlisle Reefs gold prospect on Tuesday morning resulted in its share price opening 27% higher.
Of course it should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
While this was under low volumes, it is worth noting that the company’s share register is relatively tight with the founders accounting for 51% and Gold Fields (the world’s seventh largest gold producer) 20%.
With both shareholders agreeing to a 24 month escrow period, their interests in the development of multiple targets in highly prospective areas of New South Wales are very much aligned with those of shareholders.
Gold Fields has a solid understanding of the area having spent $13.5 million exploring projects in the vicinity of a region that is renowned for producing prominent greenfield exploration projects.
These include Newcrest Mining’s Cadia Valley, the third largest gold-copper porphyry in the world, producing 2 million ounces of gold and 75,000 tonnes of copper per annum. They are also long life assets with Evolution Mining’s Cowal project for instance being a 5 million ounce project, producing up to 300,000 ounces of gold per annum with a life of mine in excess of 20 years.
The location of these projects and their proximity to the Moorefield project can be seen in the following map.
Carlisle Reefs past and present
Carlisle Reef is an historic goldfield which dates back to the 1930s. The area contains nearly 100 historic gold workings over an 800 square metre area. However, none of the workings have ever been drilled, and the holes tested beneath surface and underground workings yielded significant rock chips including more than 1000 grams per tonne gold.
These were coincident with surface geochemical anomalies and interpreted favourable structural positions. The drill holes successfully tested the target areas and intersected gold bearing horizons with internal high-grade shoots that are hosted by strongly sheared and faulted metasedimentary rock package.
These geological characteristics are typical of those found in producing mines, and high grade gold rock chips at surface highlight the potential for more extensive gold mineralisation at depth. Currently defined gold mineralisation extends from near surface to 100 metres vertical and is open down dip and along strike to the north and north-west.
Gold mineralisation has now been intersected at Carlisle Reefs and Boxdale to the north-west where Gold Fields previously drilled five holes, one of which yielded a gold intercept of 19 metres grading 1.28 grams per tonne gold from 114 metres, including 4 metres at 4.3 grams per tonne.
To a significant extent, these latest results serve to confirm management’s view that there could potentially be a 14 kilometre trend that runs between the two prospects as indicated below.
As can be seen in the following program, the next 12 months is an active period of exploration across MAG’s various assets, and should the company have continued success in this highly prospective region it could provide further share price momentum.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
