Myall Project Faces Uncertainty as Some Prospects Yield No Significant Results

Joint Venture Boosts Exploration at Myall

Magmatic Resources Limited and Fortescue Ltd have formalised a $3.5 million exploration budget for the 2025-26 financial year at the Myall Project in New South Wales. This commitment follows their Farm-in and Joint Venture Agreement signed in March 2024, under which Fortescue can earn up to a 75% stake by investing $14 million over six years.

The upcoming work program will focus on a substantial air core and diamond drilling campaign, with detailed planning already underway. Fortescue’s expenditure of this budget will satisfy its minimum earn-in obligation of $3 million and 3,000 meters of drilling within the first two years, securing an initial 51% interest in the project.

Drilling Results Highlight Calais Prospect Potential

Recent diamond drilling completed at Myall included 12 holes totaling nearly 3,000 meters, targeting multiple regional prospects such as Calais, Monaro, Sandman, and others. While the Monaro and Sandman prospects returned no significant copper or gold intercepts, the Calais prospect delivered encouraging results.

Notably, hole FMD0504 intersected 10.8 meters grading 0.39% copper and 0.07 grams per tonne gold near the end of the hole, while hole FMD0508 returned 11.7 meters at 0.59 grams per tonne gold, alongside zinc, silver, molybdenum, and minor copper. These intercepts are interpreted as mineralisation within the wallrock of a porphyry system, with indications of an epithermal overprint suggesting complex mineralising processes.

Magmatic’s exploration team, working closely with Fortescue, is focused on refining the geological framework of the Narromine Igneous Complex to better understand and target the core of this mineralised system. The promising Calais results have prompted plans for follow-up drilling to delineate the extent and grade of the mineralisation.

Strategic Positioning in a Proven Copper-Gold Belt

The Myall Project lies within the East Lachlan region, a prolific copper-gold porphyry province hosting major mines such as Newmont’s Cadia Valley and Evolution Mining’s Northparkes and Cowal operations. Magmatic’s maiden Inferred Mineral Resource Estimate at the Corvette-Kingswood prospects totals 110 million tonnes at 0.33% copper equivalent, underscoring the project’s potential scale.

Fortescue’s involvement as both a joint venture partner and a significant shareholder (holding 18.77% of Magmatic) signals strong confidence in the project’s prospects. Magmatic will continue to operate exploration activities and receive a 10% operator’s fee until the operator’s role transitions.

Looking Ahead

The $3.5 million budget and upcoming drilling program mark a pivotal phase for the Myall Project. While some prospects have yet to yield significant results, the Calais prospect’s early indications of a mineralised porphyry system offer a compelling target for further exploration. The collaboration between Magmatic and Fortescue aims to accelerate discovery and resource growth in this highly prospective copper-gold belt.