Magmatic Resources (ASX: MAG) says the results of a nw MIMDAS geophysical survey results appear to have significantly expanded the Lady Ilse Prospect within its Wellington North Project in New South Wales.
The company has now received the remaining three of four lines from a MIMDAS geophysical survey Lady Ilse with the results suggesting that the Lady Ilse target has grown significantly relative to the previous interpretation based on the first line and remains open to the south.
Magmatic Managing Director, Peter Duerden, said the survey 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 porphyry system at Lady Ilse.
Mr Duerden said the Lady Ilse Prospect exhibits the same characteristics as Alkane’s Boda 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 intrusive complex.
“Magmatic considers the significantly wider zone of upper level pyrite-rich porphyry alteration defined at Lady Ilse to represent a larger scale porphyry opportunity than Boda,” the company told the ASX.
In 2014, Magmatic completed the acquisition of an advanced gold-copper target portfolio from Gold Fields Limited in the East Lachlan Gold-Copper Province.
The East Lachlan has an endowment of more than 80 million ounces of gold and 13 million tonnes of copper. It is most famous for Newcrest’s world class porphyry gold-copper cluster at Cadia Valley, where currently the Cadia East Mine represents Australia’s largest gold mine and one of the world’s most profitable gold producers.
In addition, the Northparkes copper- gold porphyry cluster (China Molybdenum/Sumitomo, CMOC 2018) and Cowal Epithermal Deposit (Evolution Mining, Evolution 2018) also represent significant long-life mining operations.
Mr Duerden said the recent Boda porphyry discovery by Alkane Resources Ltd has highlighted the value of Magmatic’s dominant surrounding tenure position in the northern Molong Belt, in what is emerging as a significant gold porphyry discovery hotspot.
He said the Boda discovery has also highlighted the surface porphyry exploration signature and has had an immediate impact on the ranking of Magmatic’s exploration targets, with several upgraded for Boda-style and Cadia East-style porphyry gold-copper mineralisation, e.g. Lady Ilse, Rose Hill, Ninety and Mayhurst.
The company also holds a strategic position in the Parkes Fault Zone (Parkes Project), which is emerging as the other NSW gold discovery hotspot and provides further opportunity to add significant value via near term exploration success.