Name of the Project
Lady Julie gold project.

Location
Laverton, Western Australia.

Project Owner/s
Magnetic Resources.

Project Description
An economic update has confirmed a financially attractive standalone project with low-cost, high-margin gold production of 817 470 oz, averaging 104 000 oz/y, over an eight-year life-of-mine (LoM). The operation comprises the LJN4, LJC and HN9 openpits; a dedicated 2.2-million-tonne-a-year processing plant; and associated services and facilities. The project has an openpit mining inventory of 16.03-million tonnes at 1.71g/t of gold, containing 883 000 oz of gold. 

Total LoM production includes about 84% indicated and 16% inferred mineral resource, with the indicated resource forming the basis of the production schedule in the first 6.5 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $925-million at 
A$3 200/oz and an internal rate of return of 135%, with a payback of 12 months from the start of production.

Capital Expenditure
The project will require development capital of $111.3-million, assuming a standalone 2.2-million-tonnes-a-year processing plant and three month preproduction activities.

Planned Start/End Date
Not stated.

Latest Developments
Magnetic Resources announced the successful completion of a A$10-million single placement to sophisticated and institutional investors on September 30. Funds from this raising will enable the company to continue to drill for deeper resource extensions while simultaneously advancing feasibility work with the aim of establishing a long mine life.

The placement, which was oversubscribed, comprised eight-million new fully paid ordinary shares to be issued at A$1.25 a share.

“The company continues to expand the gold resources at the South Laverton project, and on behalf of the Magnetic board, I would like to thank our existing shareholders for their ongoing support and welcome new shareholders as we continue to expand the highly promising Lady Julie gold project,” MD George Sakalidis enthused.

The Lady Julie gold project continues to expand in size, and with an increasing gold price, Magnetic continues to be “excited” by the potential for financially robust low-cost, high-margin gold production. 

Argonaut Securities acted as lead manager to the placement.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Magnetic Resources, tel +61 89226 1777 or email info@magres.com.au.