Lady Julie Gold Project Now Fully Leased with 2.14Moz Resource Confirmed
Magnetic Resources NL has secured all necessary mining leases for its Lady Julie Gold Project, marking a critical step towards production. Supported by a robust feasibility study and a recent resource upgrade, the project is now development-ready.
- All mining leases granted for Lady Julie Gold Project deposits
- Resource upgrade confirms 2.14 million ounces of gold
- Feasibility study shows strong economics and over one million ounces planned for mining
- Miscellaneous licence approved for water and power infrastructure
- Project advancing towards development readiness with solid operational metrics
Mining Leases Secured – A Milestone Achieved
Magnetic Resources NL has announced the granting of all mining leases covering the Lady Julie Gold Project (LJGP), a significant regulatory and operational milestone. The approvals encompass the three main deposits, Lady Julie North 4, Lady Julie Central, and Hawks Nest 9, along with a miscellaneous licence for essential infrastructure such as water pipelines and powerlines. This comprehensive approval clears a major hurdle, enabling the company to progress confidently towards production.
Resource Upgrade and Feasibility Study Underpin Project Viability
Earlier this year, Magnetic Resources reported a resource upgrade for the LJGP, now estimated at 35.6 million tonnes grading 1.86 grams per tonne gold, equating to 2.14 million ounces. Complementing this, the July feasibility study outlined robust economic parameters, projecting over one million ounces to be mined. The study highlights a project life of nine years, with an average annual gold recovery exceeding 90,000 ounces and an operating cost structure that supports strong margins at current gold prices.
Economic Metrics Signal Strong Potential
The feasibility study reveals an undiscounted pre-tax cash flow of approximately A$1.75 billion and an EBITDA margin of 55%, reflecting efficient operations and favourable market conditions. While capital expenditure requirements are substantial, the project’s net present value and internal rate of return remain attractive, suggesting Magnetic Resources is well-positioned to attract investment and advance development.
Looking Ahead – From Approvals to Production
Managing Director George Sakalidis emphasised the importance of these approvals, describing them as a key step towards becoming shovel-ready. With mining leases and infrastructure licences in place, the company can now focus on finalising financing, construction planning, and operational readiness. The pathway to production appears clear, but execution risks and market fluctuations will remain factors to watch.
Bottom Line?
With all mining leases secured, Magnetic Resources is poised to transition Lady Julie from concept to cash flow, but market dynamics will test its momentum.
Questions in the middle?
- What are the timelines and financing plans for construction and production start-up?
- How sensitive are project economics to gold price fluctuations beyond the feasibility study assumptions?
- What are the potential operational or environmental risks that could affect development schedules?
