Gold rose to record levels around $2,950 per ounce on Thursday, fuelled by trade tensions. Increased gold investing led investors to enhanced diversification into ASX gold companies.
Magnetic Resources NL is among the growing companies to invest in
Magnetic Resources NL (ASX: MAU)
Magnetic Resources NL has reported outstanding exploration results from its Lady Julie North 4 (LJN4) gold deposit, highlighting significant new intersections and the potential for further resource expansion. The latest drilling has confirmed the presence of a third high-grade core, measuring 150m by 400m, which remains open at depth. Notable intersections include 51m at 3.5g/t gold from 444m, with a higher-grade section of 14m at 8.8g/t from 451m. These results suggest a substantial extension to the known mineralisation, with ongoing drilling expected to further increase the resource base.
The current resource estimate for LJN4 stands at 23.6 million tonnes at 2.04g/t gold for a total of 1.55 million ounces. Recent diamond drilling, particularly holes MLJDD073 and MLJDD076, is testing deeper extensions beyond 1000m, with the aim of delineating additional high-grade zones. The deposit consists of multiple high-grade cores, with mineralisation extending over a 750m strike length and remaining open down-plunge. Magnetic Resources is also evaluating the potential for underground mining, in addition to the open-pit model outlined in its previous economic study.
The company, one of the best gold stocks, has announced further encouraging metallurgical results, indicating an increase in gold recovery rates. New tests show an average recovery of 93% across various oxidation states, an improvement from the previous 88% achieved through conventional gravity and cyanide leaching. The introduction of flotation and fine grinding has led to a notable enhancement in gold recovery, particularly in sulphide-rich samples. Further optimisation studies suggest that refining the flotation process and adjusting grinding size could reduce processing costs while maintaining high recoveries.
The company expressed optimism about these developments, noting that the latest results reinforce the economic potential of the LJN4 deposit. The company is now advancing feasibility studies to integrate both open-pit and underground mining scenarios, with the goal of fast-tracking approvals and development. Additionally, ongoing studies in collaboration with Jefferies and Argonaut are exploring financing options and strategies to maximise shareholder value.
With gold prices at record highs and the Laverton region proving to be highly prospective, Magnetic Resources is positioned to capitalise on its expanding resource base. The continuous discovery of high-grade mineralisation, coupled with improved metallurgical recoveries and strategic planning, underscores the company’s commitment to developing a large-scale, high-value gold project. Further drilling and feasibility assessments will continue to define the full extent of the LJN4 deposit and determine the optimal path forward for production.
(Source: Company's Report)
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