Magmatic Resources (ASX: MAG) has obtained binding commitments from a range of institutional and sophisticated investors for a capital raising of $5 million to rapidly progress the company’s exploration activities at its exploration assets in the East Lachlan province in New South Wales.
Managing Director, Peter Duerden, said the company’s exploration work will have a particular focus on the Lady Ilse gold-copper porphyry target ~6km SW of Alkane’s Boda discovery, where drilling will commence in late March.
“We are delighted with the overwhelming support we have received for this Placement and in the strong interest we are receiving in our upcoming exploration programme,” Mr Duerden said.
“Following completion of the Placement Magmatic will be well funded to rapidly progress exploration activities across our portfolio of highly prospective exploration assets in New South Wale’s East Lachlan Province, commencing with the drilling of the Lady Ilse Prospect, a ‘Cadia East-style’ gold-copper porphyry target, adjacent to Alkane’s recent Boda discovery.”
Magmatic recently received the remaining three of four lines from a MIMDAS geophysical survey at the Lady Ilse Prospect within the Wellington North Project.
Interpretation of this MIMDAS data indicated that the Lady Ilse target has grown significantly relative to the previous interpretation and remains open to the south.
These results, in combination with the wide zone of gold and porphyry pathfinder anomalism (Te-Bi-As) associated with upper level pyrite-rich porphyry alteration suggest the potential for the preservation of a Cadia East-style gold/copper porphyry system at Lady Ilse.
Mr Duerden said the Lady Ilse Prospect exhibits the same characteristics as Alkane Resources Limited’s Boda gold/copper porphyry discovery at the equivalent stage of exploration, including a wide zone of gold and porphyry pathfinder geochemical anomalism associated with upper level pyrite-rich porphyry alteration and a setting at the western margin of an alkalic intrusive complex.