Magnetic Resources signs native title deal to close in on Lady Julie mining leases

• Magnetic Resources signs key native title agreement for its Lady Julie gold project
• Agreement removes any objection to the issue of mining lease that are under application
• DFS will include an underground mining scenario and is expected to be released soon

Special Report: Magnetic Resources has signed a native title agreement for its Lady Julie gold project near Laverton, WA, clearing the way for mining leases to be issued.

The agreement with the Wangkatja Tjungula Aboriginal Corporation, which is the registered native title body corporate for the Nyalpa Pirniku People, removes any objection to the issue of mining leases under application over the project.

Magnetic Resources (ASX:MAU) has agreed to pay an upfront commencement payment plus annual production-based royalty payments typical of gold mining projects in the state.

“I want to thank members of WTAC for assistance in driving this agreement forward – it is a great outcome and a credit to those involved,” managing director George Sakalidis said.

“This step will help clear any regulatory obstacles to securing mining leases for Lady Julie and progressing towards being shovel ready.”

WTAC chairman David Canning said the agreement reflected a shared commitment to preserving cultural heritage, protecting environmental values and supporting the aspirations of the Nyalpa Pirniku community.

“Built on the foundations of mutual respect, transparency and shared prosperity, this partnership will deliver tangible benefits, driving community development, creating employment and training pathways, and fostering long-term economic empowerment,” he added.

Lady Julie project

Lady Julie has a resource of 28.11Mt grading 1.93g/t for 1.75Moz of contained gold.

Most of this is within Lady Julie North 4 with a resource of 23.6Mt at 2.04g/t for ~1.55Moz contained gold.

According to an economic update in August 2024, Lady Julie is expected to produce at an annual rate of 104,000oz for eight years from an open pit to generate total EBITDA of $1.49bn using a $3200/oz gold price.

Pre-tax NPV and IRR – both measures of profitability – are $925m and 135% respectively.

This is looking increasingly conservative given the Australian price of gold sits just below $5200/oz.

Development capex was estimated at $111.3m assuming a standalone 2.2Mtpa processing plant and three months pre-production activities while all-in sustaining costs are expected to be $1386/oz.

Metallurgical testing in April 2025 returned excellent recovery rates including 97.5% from a composite in a deeper section of LJN4’s underground resource.

Along with the potential to increase resources at the central and northern high-grade core zones, this finding could increase the forecast annual production rate of 104,000oz.

A definitive feasibility study, which will contemplate an underground mining scenario, is expected to be released in the June 2025 quarter.

This article was developed in collaboration with Magnetic 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.