Magnetic Resources

GEORGE SAKALIDIS

MANAGING DIRECTOR

(ASX:MAU)

◾ Company Name: Magnetic Resources ◾ Company ASX code: MAU ◾ Key Commodities: Gold ◾ Key Personnel: George Sakalidis, Managing Director ◾ Locations: Laverton, Western Australia ◾ Market Cap as of 15/08/22: $225.31M ◾ FY22 Share price range – Low/High: $0.900 / $1.695 ◾ Company Website: magres.com.au

COMPANY PROFILE

Since it was granted the Hawks Nest gold tenement near Laverton in 2017, Magnetic Resources has taken a deliberate, methodical approach to exploration in the multi-million-ounce gold field.

Led by exploration geophysicist George Sakalidis, whose 30 years in the mining industry includes significant discoveries at Three Rivers and Rose gold deposits, Magnetic this year announced its maiden resource.

Magnetic now has a number of significant gold discoveries on its hands at the Hawks Nest 9, Lady Julie and Homeward Bound South deposits across the Laverton and Leonora gold fields.

After five years and over 100,000m of RC drilling, Magnetic delivered the JORC 2012-compliant resource estimate in June, totalling 14.8Mt at 1.13g/t Au for 536,000oz of gold at 0.4g/t cut-off, or 13.1Mt at 1.22g/t for 511,000oz at a 0.5g/t cut.

That will provide the basis for development studies, and in that sense the three gold deposits could not be better located.

Magnetic is surrounded by over 10Mt of milling capacity in the northern Goldfields where over 40Moz has historically been mined, with the 7Moz Wallaby, 16Moz Sunrise Dam, 2.4Moz Westralia and 1.3Moz Jupiter mines all within spitting distance.

The company’s aim is to prove up the potential for those kinds of deposits, of 1Moz or greater, on its own ground, which takes in 261sqkm in the Laverton region.

Given its Hawks Nest tenements are only 15km north of Gold Fields’ Wallaby deposit, which feeds the South African mining giant’s hungry Granny Smith mill, Magnetic could well field interest for toll treatment or M & A.

The 2.5km long HN9 deposit and the adjacent Lady Julie bear many of the signatures of major mines nearby.

At both HN9 and Lady Julie, Magnetic has identified multiple thickened stacked lodes near surface akin to Wallaby, Sunrise Dam and Jupiter.

Intersections at HN9 start at surface, including results in recent RC drilling like 7m at 3.8g/t from 11m and 8m at 2.5g/t from surface. Of the 1727 intersections drilled to April at HN5, HN6, HN9 and Lady Julie above 0.5g/t, 755 are more than 1g/t and 284 are more than 2g/t.

The shallow nature of the mineralisation is a major fillip, with 49% of Magnetic’s resource tonnes within 50m of surface and 87% within 100m at a discovery cost of just $24/oz.

That makes it amenable to open pit mining, with 87% of the gold constrained within a pit shell at a gold price of $2600/oz, and 83% in a $2400/ oz shell.

Magnetic has enlisted the help of investment bank Jefferies to review strategic opportunities for Laverton and Homeward Bound South, with project studies to be a core focus going forward.

“The Maiden Mineral Resource Estimate is a significant milestone for Magnetic Resources with the exceptionally shallow nature of the resources and location of the deposits in the heart of the Laverton and Leonora regions auguring well for strong economics from future development,” Sakalidis said at the time.

But there remains a mountain of upside. Recent drilling at Lady Julie North 4 returned its best hit to date of 50m at 1.92g/t of gold from 96m, including 18m at 4.13g/t from 107m.

A 37 RC hole for 3056m has commenced and is looking at extending the Lady Julie North 4 Deposit both to the North and South and down dip.

In addition, economic studies have commenced and some early works programmes are being initiated.

KEY INVESTMENT HIGHLIGHTS

JUNE 27, 2022: Maiden mineral resource announce for Laverton and Homeward Bound of 14.8Mt @ 1.13g/t Au for 536,000oz of gold at a 0.4g/t cut-off. 15 AUG, 2022: Intersection of 50m at 1.92g/t of gold from 96m, including 18m at 4.13g/t from 107m, in drilling at Lady Julie North 4. JULY 12, 2022: MAU raises $1.1 million in a placement at $1.05 a share to fund studies at Laverton, including $265,000 from directors.