Gold Rush: New investors flock to Magmatic Resources after Weebo acquisition

• Magmatic is drawing strong investor interest after acquiring the 200km2 Weebo gold project in WA’s Northern Goldfields
• Drilling is underway at key targets, including Ockerburry and Scone Stone, in an area surrounded by five multi-million-ounce gold mines
• We chat to MD David Richardson to get the lowdown on what the Weebo acquisition means for the company 

Magmatic Resources is catching investor attention after snapping up the WA-based Weebo gold project in July, perfectly timed with the gold price notching nearly 30 new records this year and currently trading around the AUD$5500 mark.

The company’s managing director, David Richardson, told Stockhead the share registry had been running hot with investors piling in for a piece of WA gold action on ground that’s been untouched by drill rigs for two decades.

Weebo spans nearly 200km2 of greenstone belt in the heart of WA’s prolific Northern Goldfields and is neatly wedged between five multi-million-ounce gold mines including Darlot (Vault Minerals), Agnew-Lawlers (Gold Fields), Bellevue (Bellevue Gold), Bronzewing (Northern Star) and Thunderbox (Northern Star).

It includes several greenfield as well as advanced-stage drill targets at Ockerburry and Scone Stone, which Magmatic Resources (ASX:MAG) is targeting with a 3700m aircore and RC drilling campaign.

Tapping into historical know-how as drilling begins

Richardson said Weebo was within the same rocks as three of those five mines (Bronzewing, Thunderbox and Darlot), giving the company a head start by leveraging previous exploration insights.

“There’s a lot of similarities, which means we don’t have to go and reinvent the wheel,” he said.

“A lot of these discoveries were made on the back of good geophysics, good geochemistry work and then aircore, RC and diamond drilling.”

Building on that proven formula, Richardson said the company was hoping to reproduce similar results to historical drilling with its first RC program at Scone Stone.

The first phase of the program will focus on shallow high-grade zones at the base of transported cover from historical drilling at Ockerburry, where two holes, 55m apart, recorded 2m at 18.4g/t gold from 8m and 4m at 29.9g/t from 8m.

It will then move to Scone Stone to confirm the geometry of stratigraphic contacts and associated mineralisation.

Follow-up aircore drilling will then be carried out to refine priority targets ahead of expanded drilling in November, and test deeper targets at the Otto prospect.

“Everyone has been waiting for gold to do what it has been doing, and the current gold price speaks for itself,” he said, pointing to the strong market conditions fuelling increased exploration activity.

“It’s in record highs in the US and in Australia – there’s never been a better time for gold – and I think the market believes we’re in a sustained period of gold strength,” he added.

Two big plays as Magmatic doubles down on copper-gold

Magmatic was originally set up to go after gold and copper opportunities in NSW, zeroing in on its Parkes, Wellington North and Myall assets, with the latter now backed by FMG through a $3.5m JV budget for FY2026.

“We knew that if we were to add another project to our portfolio, it’d be one with gold exposure, and the Goldfields in WA are pretty much top of the leaderboard for finding it and developing it,” Richardson said.

“Two of our assets in NSW really needed a partner to advance them and luckily for us, we were able to find a significant tenement position on the Yandal Greenstone Belt in WA, which is a wonderful jurisdiction.”

That lucky break in WA didn’t just fill a gap, it has now put Magmatic on track to juggle two solid projects at once.

A large IP survey will kick off at the Myall asset in October-November once the rain and bad weather clear, with diamond drilling to follow

Myall not only shares the same rocks and geology as Evolution Mining’s Northparkes mine in NSW’s East Lachlan Belt, but it also revealed similar porphyry mineralisation once drilling kicked off in 2022.

This led to the definition of a large resource in 2023 of 110Mt grading 0.33% copper equivalent, or a contained mineral inventory of 293,000t copper, 237,000oz gold and 2.8Moz silver, at the Corvette and Kingswood prospects.

Like most porphyry systems, Myall offers big tonnage with lower grades but that’s par for the course and hardly a concern when you consider porphyries produce around 80% of the world’s copper.

The next discovery might already be in the ground

Richardson said the diamond drilling campaign at Myall would continue with some regional work to try and identify new discoveries but most importantly, would also start to drill out the areas surrounding the resource at the Corvette-Kingswood deposit.

During the first 12 months since the agreement was signed with FMG in March 2024, the two companies carried out a lot of preparatory work at Myall such as geophysics, geochemical relogging and examining old core.

Taking Northparkes as an example, where most deposits occur within 2km of each other, the very first drill program was aimed at finding other potential porphyry deposits which led to the potential discovery at Calais, a vote of confidence to expand regional drilling.

With the gold stock up more than 63% year-to-date, and drill rigs ready to go, Magmatic is entering an unusually active period for a junior explorer.

It’s worth keeping an eye on what turns up at the Northparkes lookalike, and whether Weebo delivers a discovery of its own.

At Stockhead we tell is like it is. While Magmatic Resources is a Stockhead advertiser, it did not sponsor this article.