Ann: Magmatic to demerge Moorefield project and IPO, page-29

Junior explorer with a major’s portfolio

Magmatic executive chairman David Richardson said: “Combined with the exciting Gundagai and Cargelligo projects, identified and developed by NSR CEO Glen Diemar, AGC’s three projects represent a major portfolio with each project significant in their own right.

“We have always described MAG as a junior explorer with a ‘major’s’ portfolio, and this transaction will further unlock shareholder value, giving shareholders exposure to both MAG and AGC shares and further upside of two new gold projects.

“We are excited that Glen Diemar will join as AGC managing director, bringing his extensive knowledge of the Central Lachlan region, project development experience and exploration success."

NSR CEO Glen Diemar added: “The potential of each of these three assets to host significant, near surface resources is exciting and within Australian Gold and Copper the future of these assets is clearly on a strong trajectory for unlocking that value.

“We are excited to bring together an advanced portfolio of targets, each with outcropping mineralisation and historic or recent drilling intercepts.”

Gold and copper 'hotspots'

The Lachlan Fold Belt is one of the world’s gold and copper “hotspots” with a long history of high-grade gold production.

Magmatic recognised the region’s potential early and acquired four exploration projects, including Moorefield, from the world’s seventh-largest gold miner, Gold Fields and it believes it has a multi-year head start in the region.

The Moorefield project (EL7675 – Moorefield and EL8669 - Derriwong) comprises two granted exploration licences covering 477 square kilometres.

The project includes the drill-ready 15 kilometres long Boxdale-Carlisle Reefs orogenic gold trend defined by strong surface geochemical anomalism and significant existing drill results.

Recent reinterpretations of eastern Australian geology indicate a possible link and similarities between the Moorfield project and the Bendigo Zone, host to the Fosterville Gold Deposit in the Victorian Goldfields.

The Cargelligo project (EL8968) comprises an exploration licence covering 227 square kilometres and has multiple drill-ready gold-zilver-copper-zinc-lead targets within a 15 kilometres zone along strike from the Cobar Mining District in the southern Cobar Basin.

The drill-ready Mount Boorithumble and Achilles 3 targets are located along strike from and considered exploration lookalikes of Aurelia Metals’ Ltd (ASX:AMI) (OTCMKTS:AUMTF) () Hera Deposit and emerging Federation Discovery.

The Gundagai project consists of an exploration licence covering 265 square kilometres and comprises multiple drill-ready McPhillamys-style gold, epithermal gold-copper and VMS zine-lead targets.

The targets are considered comparable to those being developed by DevEX Resources Ltd at their nearby Basin Creek Project and show similarities to the Late Silurian-hosted McPhillamys Gold Deposit.

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