Name of the Project
Lady Julie gold project.

Location
Near Laverton, in Western Australia.

Project Owner/s
Emerging gold producer Magnetic Resources.
 
Project Description
A prefeasibility study (PFS) completed in March 2024 confirmed the project as financially robust, with low-cost, high-margin gold production of 720 800 oz over a nine-year life-of-mine at $2 800/oz. Average production is estimated at 87 000 oz/y.

The PFS focuses on mining the indicated and inferred resources of Lady Julie North 4, Lady Julie Central and Hawks Nest 9. Lady Julie North 4 is the largest contributor to the study, producing more than 11.5-million tonnes of ore during its operation.

The project incorporates:

• an openpit operation, involving three main pits with a maximum depth of 300 m (LJN4); 
• a staging area containing support infrastructure, including administrative offices and a medical centre, warehouses, workshop, fuel storage and distribution; 
• a 1.8-million-tonne-a-year processing plant, as well as tailings storage facilities; and
• support infrastructure, including a power station and borefield. 

Accommodation will be provided in Laverton, with daily commutes to the work site.

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 A$547-million and an internal rate of return of 85%, with a payback of 15 months from the start of production.

Capital Expenditure
A$93.4-million, including 15% contingency provision for the plant cost estimate, assuming a standalone 1.8-million-tonne-a-year processing plant and three months preproduction activities.

Planned Start/End Date
Not stated.

Latest Developments
Magnetic Resources has announced a significant milestone through its securing a native title agreement with the Wangkatja Tjungula Aboriginal Corporation (WTAC), the registered body representing the Nyalpa Pirniku People.

The agreement clears the way for the grant of mining leases over the project area by removing any objections to current applications, representing a crucial step towards the project’s becoming development-ready.

The agreement was negotiated with WTAC and authorised at a meeting of the Nyalpa Pirniku common law holders. It provides consent for Magnetic to conduct activities on the Lady Julie tenements, and includes an upfront commencement payment and yearly production-based royalty payments.

WTAC chairperson David Canning has described the deal as a “landmark agreement”, which allows for the first gold mine to be built on Nyalpa Pirniku land since the WTAC native title determination.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Magnetic Resources, tel +61 8 9226 1777.