Magmatic and Fortescue Drill Into Copper-Gold Ambitions with $3.5M Boost at Myall

In a strong signal of confidence in the copper-gold potential of central New South Wales, Magmatic Resources and mining heavyweight Fortescue have agreed to a $3.5 million exploration budget for FY26 at the Myall Project. The agreement marks the next step in a farm-in and joint venture struck in March 2024, where Fortescue can earn up to a 75 percent stake in the project for a total investment of up to $14 million over six years.

The upcoming work program centres on a mix of aircore and diamond drilling, with the aim of targeting deeper and more refined zones within the Narromine Igneous Complex. Drill planning is already underway.

The immediate goal is to fulfil Fortescue’s “Minimum Obligation” under the agreement, which requires $3 million in expenditure and at least 3,000 metres of drilling within the first two years. This comes on top of Magmatic’s 2023 maiden resource estimate at the Corvette–Kingswood prospect — 110 million tonnes at 0.33 percent copper equivalent — containing copper, gold and silver.

So far, the drill bit has hit a few snags and sparks. Results from a 12-hole regional program were mixed. The final three holes at the Monaro and Sandman targets returned no significant mineralisation. However, previously reported drilling at the Calais prospect provided some encouragement. One hole returned 10.8 metres at 0.39 percent copper and 0.07 grams per tonne gold, while another revealed an intriguing mix of gold, zinc, silver, molybdenum, and trace copper — suggestive of a potential epithermal overprint sitting atop a larger porphyry system.

Magmatic interprets the Calais results as representing mineralised wallrock on the edge of a copper-gold porphyry system. This is the geological holy grail in these parts, with the area lying along strike from Evolution and Sumitomo’s Northparkes operation. Further drilling is now being designed to home in on the potential centre of that system.

Managing Director David Richardson says Fortescue’s decision to proceed with the full $3.5 million budget is a clear vote of confidence. “The maiden drilling program with Fortescue identified a potential new discovery at Calais and tested multiple other regional targets,” Richardson said. “Fortescue and our exploration team are excited to fast-track exploration and are looking forward to commencing follow-up drilling as quickly as possible.”

For now, Magmatic retains operatorship of the project, along with a 10 percent management fee. Once Fortescue hits its spending milestones, it can increase its stake to 51 percent, and potentially up to 75 percent with further exploration funding.

The Calais system is shaping up as the most immediate point of interest. While the grades to date are modest, the geological architecture suggests they might just be scratching the edge of a larger system. If follow-up drilling can vector in on the centre, the prize could be substantial.

In a market increasingly looking toward copper as a cornerstone of the energy transition, these early-stage results — and Fortescue’s continued backing — give Magmatic a shot at being more than just a junior explorer in the shadow of East Lachlan’s mining giants.