Magmatic Resources wraps up first stage of Weebo gold acquisition

• MAG completes first stage of purchase for the Weebo gold project in WA
• Project sits near five gold mines with previous hits of up to 29.9g/t
• Company plans maiden aircore drilling in the near-term

Special Report: Magmatic Resources has completed the first stage of its purchase of the Weebo gold project in the heart of WA’s Goldfields.

The project totals 136km2 of tenure near Leinster and covers around 50 strike kilometres of the strongly gold mineralised southern Yandal Greenstone Belt.

It consists of eight exploration licences and one prospecting licence. Stage 1 covers five of the exploration licences and the prospecting licence with stage 2 covering the remaining three exploration licences.

The project is in the vicinity of five gold mines, Vault Minerals’ (ASX:VAU) Darlot mine, Gold Fields’ Agnew-Lawlers project, Bellevue Gold’s (ASX:BGL) namesake mine and Northern Star Resources’ (ASX:NST) Bronzewing and Thunderbox mines.

Not to mention, with the gold price hovering around the A$5000 mark, it’s a smart move for the company to stake a claim in one of WA’s hottest gold regions.

The deal has seen Magmatic Resources (ASX:MAG) pay $50,000 cash and 36 million in company shares, valued at $1.44m, with a further 14m shares contingent on milestones

Managing director David Richardson said finalising stage 1 of the exciting gold project was a fantastic achievement for the company.

Exploration up and running

Weebo hosts some notable walk-up drilling targets, with previous shallow aircore drilling returning hits like 4m at 29.9g/t gold from 8m.

The company’s exploration team spent the last week on site mapping, sampling and planning the maiden exploration program including an aircore drilling program to further define targets.

“Our Western Australian exploration team is already well advanced in designing upcoming exploration programs having spent the past week at all nine tenements,” Richardson said.

“Programs Of Work are finalised and upon approval we plan an immediate program of aircore drilling.

“In addition, the team is preparing for more advanced RC and diamond drill exploration on the more advanced prospects.

“We look forward to an exciting second half of the year with both our NSW and WA based teams being very active.”

In the east, the company is advancing three projects in the East Lachlan of NSW and is progressing a major drill program at the Myall project farm-In and JV with FMG Resources).

This article was developed in collaboration with Magmatic Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.