Lady Julie Project to Produce 1.02Moz Gold Over 9 Years with A$375M CAPEX

Robust Economics Confirmed

Magnetic Resources NL has released the results of its Feasibility Study for the Lady Julie Gold Project (LJGP), located in Western Australia's Eastern Goldfields. The study outlines a compelling standalone development pathway with a nine-year mine life, producing approximately 1.02 million ounces of gold at an average of 140,000 ounces annually once at full production.

Financially, the project is highly attractive, boasting a pre-tax Net Present Value (NPV) of A$970 million based on a conservative gold price of A$4,000 per ounce. This figure escalates to A$1.668 billion at the current spot price of A$5,145 per ounce. The internal rate of return (IRR) stands at a robust 45%, underscoring the project's profitability potential.

Mining Reserves and Operational Scope

The study includes a maiden Mining Reserve of 18 million tonnes grading 1.72 grams per tonne gold, containing nearly one million ounces. This reserve encompasses both open pit and underground ore, with the Lady Julie North 4 deposit being the largest contributor. Notably, additional upside exists from recently defined resources not yet incorporated into the mine plan, suggesting potential for future extensions.

The operation will feature three open pits, an underground mine running concurrently, and a dedicated 2.75 million tonnes per annum processing plant. Supporting infrastructure includes a 20MW gas/solar power station and bore fields for water supply. The workforce will operate on a fly-in fly-out basis, accommodated in a purpose-built 300-person camp in Laverton.

Capital and Cost Structure

Initial capital expenditure is estimated at A$375 million, covering earthworks, plant construction, infrastructure, and working capital. Sustaining capital over the life of the mine is projected at A$101 million. Operating costs average A$1,908 per ounce on an all-in sustaining cost (AISC) basis, positioning the project in the lower half of the Australian gold cost curve.

The payback period is approximately 30 months from the start of production, shortening to around 21 months at current gold prices. The project’s EBITDA is forecast at A$2.23 billion over its life, reflecting strong cash flow generation potential.

Path to Development and Community Engagement

Magnetic Resources is advancing towards construction readiness, having signed a Native Title Agreement with the traditional owners, the Nyalpa Pirniku people. Mining lease applications are lodged and pending approval. The company has appointed Stuart Gula as Project Director to lead operational readiness and is focused on finalizing funding and initiating detailed engineering work.

The project’s location near Laverton benefits from existing infrastructure and community support, with plans for a permanent accommodation camp and upgrades to local facilities. The company emphasizes safety and environmental stewardship, with comprehensive baseline studies completed and plans for rehabilitation post-mining.

Outlook and Market Positioning

With a strong economic foundation and significant resource upside, the Lady Julie Gold Project positions Magnetic Resources to transition from exploration to a mid-tier gold producer in a stable jurisdiction. The project’s resilience to cost and operational variables, combined with its low-cost profile, offers a competitive edge amid gold market volatility.

While funding discussions are at an early stage, the company is confident in securing a mix of debt and equity financing. The next phases will be critical in translating the feasibility outcomes into tangible development milestones.