Overview of Magnetic Resources NL's Lady Julie Gold Project update

Magnetic Resources NL (ASX: $MAU) has released the results of a Prefeasibility Study (PFS) on its Lady Julie Gold Project, demonstrating exceptional value with low-cost, high-margin gold production. The study confirms a financially robust project with a pre-tax IRR of 85% at A$2,800/oz, increasing to 108% at the current spot price of A$3,100/oz. The Project has a life of mine average C1 (operating) cost of A$1,434/oz and AISC of A$1,445/oz, including sustaining capital of $8M. The open pit mining inventory contains 773,700oz gold, with the initial 5 years of production from the Indicated Resource. The development capital required is A$93.4M, and a Mining Proposal will be prepared to advance further mining lease application and regulatory approval.

Executive commentary on Lady Julie Gold Project update

The Project's low-cost profile and strong financial return metrics are primarily driven by the near-surface, high-grade nature of the Lady Julie Central and Lady Julie North 4 deposits. We plan to refine the Project's economics in 2024 and aim to increase production and mine life estimates from the inclusion of resources drilled since the last update provided in November 2023. With a market capitalization of approximately A$240 million and a strong track record of raising equity funding, we are optimistic about the financing options and expect strong demand for gold, making funding likely available. The Project is located in Western Australia, a stable mining jurisdiction with low levels of risk, making it attractive for financiers and partners.

Summary of Magnetic Resources NL's Lady Julie Gold Project update

Magnetic Resources NL's Prefeasibility Study on the Lady Julie Gold Project has unveiled exceptional value with low-cost, high-margin gold production. The study confirms a financially robust project with a pre-tax IRR of 85% at A$2,800/oz, increasing to 108% at the current spot price of A$3,100/oz. The Project has a life of mine average C1 (operating) cost of A$1,434/oz and AISC of A$1,445/oz, including sustaining capital of $8M. The open pit mining inventory contains 773,700oz gold, with the initial 5 years of production from the Indicated Resource. The company plans to further refine the Project's economics in 2024 and aims to increase production and mine life estimates from the inclusion of resources drilled since the last update provided in November 2023. With a market capitalization of approximately A$240 million and a strong track record of raising equity funding, the company expects strong demand for gold, making funding likely available. The Project is located in Western Australia, a stable mining jurisdiction with low levels of risk, making it attractive for financiers and partners. The announcement also provides detailed information on the Project's environmental impact, site location/history, legislative regime, tenement/land tenure, heritage and native title, geology, mining, establishment/mobilization, ore processing, tailings storage, economic factors, risks, forward work plans, and disclosures. The study was conducted in compliance with the JORC Code (2012) and the ASX Listing Rules.