Magnetic adds $3m to coffers to build on Hawks Nest 9 multi-million-ounce potential
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Special Report: Investors have keenly tipped a fresh $3m into gold hopeful Magnetic Resources to enable it to gear up resource and exploration drilling at its promising Hawks Nest 9 (HN9) discovery.
A large chunk of the cash will be injected into HN9 to undertake additional drilling, metallurgical work, resource and scoping studies.
Magnetic (ASX:MAU) said it had strong interest in the placement by mainly existing and some new shareholders.
The company is confident further drilling will result in the delivery of a JORC-compliant resource for the project, which could become the Laverton region’s next multi-generational gold mine.
JORC refers to the mining industry’s official code for reporting exploration results, mineral resources and ore reserves, managed by the Australasian Joint Ore Reserves Committee.
“The past 12 months have seen the company define additional mineralisation both at depth and along strike at the Hawks Nest 9 project, with the company of the belief that additional drilling will result in a JORC resource being declared,” managing director George Sakalidis said.
“These funds will allow the company to undertake metallurgical and resource definition work with the view to initiating pre-feasibility studies later in the year.”
Previously an iron ore play, Magnetic began picking up greenfields (untouched) exploration ground around WA’s gold-rich Laverton and Leonora districts in 2016.
These project areas rub shoulders with mammoth gold deposits like Wallaby (+7.1moz), Sunrise Dam (+10moz), Granny Smith (+6moz) Gwalia (+7.3moz), Westralia (+2.4moz) and Jupiter (+1.3moz).
HN9 — a very shallow high-grade gold zone 3km long, 200m-wide and growing — is the reason Magnetic quietly slipped into Stockhead’s top 10 biggest resources movers for 2019 with a 12-month, +278 per cent gain.
The stock has moved even higher since.
Sakalidis believes HN9 has the potential to be turned into something much more than a large, shallow deposit.
“A number of people said ‘it’s going to be a shallow deposit; it’s all going to be generated by supergene’,” he says.
“But I disagreed – it was too big for that. It’s too close to the big mines, and too many big, deep structures. Already some substantial thick gold rich porphyries have been drilled beneath the shallow deposit and are being followed up down plunge. Groumd magnetics has mapped these prophyries as well and several other zones will be tested.”