Magnetic Resources Unveils Robust $970M Feasibility for Lady Julie Gold Project

A Standalone Gold Project with Strong Economics

Magnetic Resources NL has released a comprehensive feasibility study confirming the Lady Julie Gold Project in Western Australia's Laverton region as a highly attractive standalone operation. The project is designed for a nine-year mine life producing over one million ounces of gold at an average annual rate of 140,000 ounces. The study highlights a pre-tax net present value (NPV) of A$970 million and an internal rate of return (IRR) of 45% based on a conservative gold price of A$4,000 per ounce, with upside potential if prices rise.

At current spot gold prices near A$5,145 per ounce, the project's NPV jumps to A$1.67 billion and IRR to 66%, underscoring its robust financial profile. The project’s average all-in sustaining cost (AISC) is estimated at A$1,908 per ounce, positioning it competitively in the Australian gold mining sector.

Key Milestones and Approvals Pave the Way

Significant progress has been made on the regulatory front, with all mining leases now granted covering the main deposits, Lady Julie North 4, Lady Julie Central, and Hawks Nest 9. The signing of a Native Title Agreement with traditional owners further clears the path toward development. These approvals mark critical milestones, enabling Magnetic Resources to transition from exploration to construction readiness.

Complementing these achievements, the company successfully completed a A$35 million placement in July 2025, attracting strong interest from both domestic and international institutional investors. The funds are earmarked for infill and extension drilling, feasibility study optimisation, early site works, and procurement of long lead items essential for project execution.

Operational and Financial Highlights

The feasibility study outlines a capital expenditure (CAPEX) of A$375 million, including contingency and working capital, with a payback period of approximately 30 months from production start. The project features a processing plant designed for 2.75 million tonnes per annum, incorporating advanced flotation and fine grinding circuits to enhance gold recovery to 91.9%.

Mining operations will combine open pit and underground methods, with a maiden mining reserve of 18 million tonnes at 1.72 grams per tonne gold, containing nearly one million ounces. Additional mineral resources of 3.3 million tonnes at 2.64 grams per tonne, containing 287,000 ounces, remain outside the current study but present future upside potential.

Strategic Outlook and Next Steps

Magnetic Resources is actively advancing engineering workstreams, recruiting key project personnel, and engaging with potential financiers. While formal funding discussions have yet to commence, the company is confident in securing a combination of debt and equity financing given the project's strong economics and location in a stable mining jurisdiction.

Ongoing drilling programs aim to convert inferred resources to indicated status, further de-risking the project. The company also plans to finalise infrastructure arrangements, including power supply via a cost-effective gas/solar hybrid and accommodation facilities for a fly-in fly-out workforce.

As Magnetic Resources moves toward a final investment decision, the Lady Julie Gold Project stands out as a compelling development opportunity with significant value creation potential for shareholders.