Magmatic Resources Limited (ASX: MAG)

 
Minus Text Size Plus

One junior gold explorer which began trading on the ASX today, has its hands on four advanced exploration projects after acquiring 80% of these projects from the $41 billion Gold Fields Limited.

Gold Fields, which retains a 20% escrowed stake in the company, is the world’s seventh largest gold producer and had already spent $13.5 million on exploration.

These four projects include seven tenements covering more than 850km2 of ground in the historic East Lachlan Fold Belt in NSW, where the likes of the $15.7 billion-capped Newcrest’s (ASX: NCM) Cadia Valley Operations produced 2.4 million ounces of gold in 2016 (expectations are it has circa 40+ million ounces remaining).

Evolution Mining’s Cowal deposit in the East Lachlan region has reported 5.05Moz Au at 1g/t producing up to 300Koz per annum with a mine life of 20+ years.

With today’s company’s tenements in close proximity to Cowal and Cadia Valley, there could be a lot of upside for this company as it looks to fast track its gold ambitions.

Having raised $4M in its IPO, the company is well financed to meet its early drilling goals and in fact began drilling even before the listing took place.

The first round of results is now only weeks away as the company is already looking forward to a second round of drilling as it works through 40 targets already identified, of which at least seven are near-surface and potentially open pit gold targets close to toll treatment.

The information on this page should not be the only trigger for your investment decision. Click on the links below for a more in-depth and informed examination of the company. We strongly recommend you seek professional financial advice whenever making financial investment decisions.

Adding further weight to the company’s play is an existing JV it has with JOGMEC (Japan Oil Gas and Metals National Corporation), the Japanese government’s global metals exploration agency. That means it has two heavyweights in Gold Fields and JOGMEC pulling for it to succeed.

So with location on its side, first round drilling results imminent and second round to begin shortly, expect a steady stream of newsflow over the coming months as the company looks to fully entrench itself as an explorer of worth.

 

Latest Article

Top Trending