Magmatic and FMG fund copper-gold JV

Magmatic will continue to conduct exploration activities as directed by the exploration committee and prior to the operatorship end date are entitled to a 10% operator’s fee.
Magmatic will continue to conduct exploration activities as directed by the exploration committee and prior to the operatorship end date are entitled to a 10% operator’s fee.

Magmatic Resources (ASX: MAG) and Fortescue (ASX: FMG) have set a $3.5m exploration budget for their Myall project in NSW for FY26.

Work will be focused on a significant air core and diamond drill program, with drill planning in progress.

The first stage of the joint venture involves Fortescue earning up to a 51% initial interest in the Myall project.

This is subject to Fortescue fulfilling its minimum obligation to spend $3m on exploration including 3000m of drilling within the first two years of the agreement. Fortescue must also spend an additional $3m on exploration in the first 4-year period of the joint venture.

Magmatic Resources managing director David Richardson comments on the agreement.

“The agreed 12 month $3.5m budget highlights Fortescue’s commitment to the project,” he said.

“The maiden drilling program with Fortescue identified a potential new discovery at Calais and tested multiple other regional targets.

“Fortescue and our exploration team are excited to fast-track exploration and are looking forward to commencing follow-up drilling as quickly as possible at Calais, as well across the greater project area.”

The best results from the whole program were from the previously reported Calais prospect.

Magmatic interprets the results to indicate that the copper and gold intercepts in the two holes are within the wallrock of a mineralised porphyry system and the anomalous gold result in one hole is potentially related to an epithermal overprint at the upper levels of a porphyry system.

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