ASX / Media Release10 May 201892.8 g/t Au Rock Chip Confirms...

ASX / Media Release

10 May 2018

92.8 g/t Au Rock Chip Confirms High-grade Gold Target at Bodangora

Highlights

• Rock chip sample results received from Bodangora within the Wellington North Project included a 92.8 g/t Au rock chip from historical Dicks Reward mine spoils, which confirms the high-grade target at Bodangora

• The historic Bodangora mines (Dicks Reward and Mitchell Creek) produced 230koz Au @ 26 g/t Au

• Results also confirm Magmatic’s decision to fast-track Bodangora South as a high-priority, high-grade, near-surface gold target

• Additionally, the Bodangora exploration licence has been extended for three years, providing certainty to Magmatic’s exploration strategy

  Magmatic Resources Limited (“Magmatic” or the “Company”) (ASX: MAG) is pleased to announce theresults of our recent rock chip sampling and mapping program at the high priority Bodangora gold target.

  Magmatic has taken 19 samples over the area and these are presented in Table 1 and shown in Figure 3.The best result was 92.8 g/t Au, 74 g/t Ag, and 1.2% Cu from a laminated, chalcopyrite-bearing quartz vein from mine spoil at Dicks Reward mine, and these distinct lode styles are expected to be repeated under shallow (2-5m) cover at Bodangora South. Magmatic has an exploration model which will target these lodes in Ordovician stratigraphy above the faulted Ordovician-Silurian contact.

  The rock chips were collected along sub-cropping quartz reefs and from float along the interpreted continuation of the reefs under thin cover. The rock chips were weakly laminated quartz veins and brecciated quartz veins with abundant surficial copper and iron oxides (Figure 1). First results were reported previously1, and all assays for the Bodangora rock chip samples have now been received.

  The extent of the cover has been observed at a creek to only be 2-5m thick with two distinct gravel layers (Figure 2). The alluvial cover would have obscured anomalies in earlier soil sampling campaigns.

  Managing Director David Richardson said: “This is a fantastic result and shows the high-grade nature of the veins at Bodangora. These results confirm our exploration strategy at Wellington North of targeting this

1 See MAG ASX release 26/4/2018

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area for potential veins under shallow cover. If the area was in WA’s Yilgarn and was 1-2 km along strike from a plus 230koz historic production centre, the area would have already been hammered with drill holes. We are of course very enthusiastic about the 92.8 g/t Au hit in particular, which gives us great confidence for immediate follow up exploration.”

A

B

C

D

Figure 1 (A) Sample MAG002667 Laminated chalcopyrite-bearing quartz vein grading 92.8 g/t Au and 1.20% Cu from Dicks Reward mine (B) Sample MAG002648 Stockwork veins in volcanics and laminated veins grading 6.79 g/t Au, 0.24% Cu and 1.53% Zn (C) Sample MAG002665 Laminated quartz with malachite and azurite grading 8.19 g/t Au and 0.14% Cu (D) Laminated quartz breccia at Dunnes Reef Sample BOR0010 grading 6.78 g/t Au.

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Figure 2: Alluvial cover with gravel beds at Bodangora South (left) and Dicks Reward decline at the historic Bodangora mines (right).

About Bodangora EL7440

Bodangora EL7440 is part of Magmatic’s Wellington North Gold & Copper-Gold Project, a tier one exploration project in the East Lachlan. It is located 12km north of Wellington and is home to the historical Bodangora gold mines, which consisted of two high-grade operations mined in the early 1900s with 230koz gold total production at 26g/t Au2. Magmatic prioritised the target given:

• High-grade and production volumes of previous mining operations

• Ease of access and shallow cover

• Walk-up drill targets

  The main periods of production at Bodangora were 1869 to 1880 and 1890 to 1917 with tailings retreatment at later dates. The most important areas were Mitchells Creek and Dicks Reward. The Dicks Reward reef strikes roughly WNW over a distance of 600 metres. Underground plans show this 20° north- dipping reef to be offset by northeast-trending normal faults. The Mitchells Creek reef strikes north, dips at about 40° to the east and can be traced over a strike length of 1400m.

  The mineralisation generally consists of laminated quartz ± pyrite ± galena ±chalcopyrite veins (or reefs) between 0.2m and 1.2m wide. These veins are structurally emplaced in a folded sequence of Ordovician volcaniclastic sandstones, siltstones, breccias, and marls with significant pyroxene-phyric pillow basalts. The high-grade mineralisation occurs in structurally controlled shoots within the veins. Overall the mineralised system covers an area of 4km north-south by 2km east-west.

2 See MAG Prospectus release 17/5/2017

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Figure 3: Bodangora Mines area geological interpretation showing old workings, cover and rock chip results.

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Figure 4: Wellington North project showing Bodangora and Bodangora South.

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Table 1: Rock chip sample IDs with coordinates, rock description and selected elements assay results

GDA94 55 GDA94 55 Sample ID E N Description Au g/t Ag (g/t) Cu (ppm) Pb (ppm) Zn (ppm)
BOR0001 688,358 6,406,346 Laminated quartz 8.44 5.19 3010 137 150
BOR0002	688,297	6,406,472	Wall rock to quartz laminated quartz reef, malachite	2.06	4.1	2750	1950	514
BOR0003 688,283 6,406,492 Blue quartz breccia, Cu oxides 1.08 8.39 949 312 121
BOR0004	688,261	6,406,553	Quartz breccia cemented with goethitic matrix, Cu oxides	0.12	2.7	1070	131	124
Laminated quartz, elevated BOR0006 688,451 6,406,616 chalcopyrite and Cu oxides 0.69 27.1 7090 17.2 137
BOR0008	688,181	6,406,756	Quartz breccia with cemented goethitic matrix	0.86	4.06	261	300	105
Network veins in intermediated BOR0009 687,972 6,405,672 volcanic 2.23 0.66 74.8 25.7 88
BOR0010	687,885	6,406,908	Laminated quartz with quartz breccia veins.	6.78	4.74	470	134.5	17
Laminated quartz with quartz BOR0011 688,083 6,406,442 breccia veins. Galena present 4.22 13.4 755 9480 361
BOR0012	687,941	6,406,500	Fe oxide selvage in quartz veins	0.01	0.24	194	28.9	62
Laminated quartz with Fe oxide BOR0013 688,741 6,406,760 filled vugs 0.03 0.12 150.5 8.5 7
BOR0014	688,622	6,406,361	Moderate sulphides in laminated quartz	0.07	0.24	71.9	3.3	3
Laminated quartz float with BOR0015 688,165 6,405,327 trace sulphides 1.09 1.77 115 102.5 22
MAG002648	686,676	6,407,940	Stockwork veins in volcanic. Laminated vein with sulphides	6.79	14.35	2460	2730	15350
Brecciated quartz vein with MAG002649 687,009 6,408,051 goethitic infilled vugs 7.11 14.5 307 142.5 90
MAG002650	687,504	6,408,143	Buck quartz vein with goethitic infilled vugs	2.77	2.77	304	317	127
Laminated quartz with MAG002665 688,190 6,406,701 malachite and azurite 8.19 14.1 1430 1125 282
MAG002666	688,184	6,406,760	Laminated quartz with goethitic infilled laminations	0.24	2.92	127	356	178
Laminated quartz vein. Chalcopyrite and pyrite in MAG002667 686,690 6,407,940 laminations 92.80 74.2 12050 1055 1810

About Magmatic’s Project Portfolio

Magmatic Resources is a multi-commodity exploration company that listed on the ASX in May 2017 with four projects in the East Lachlan, New South Wales focused portfolio focused on gold, copper and other base metals including zinc. Magmatic has recently acquired two Western Australian projects: Yamarna (gold) and Mt Venn (copper-nickel-cobalt) in Australia’s newest goldfield, the Yamarna Belt, 200 kilometres east of Laverton in Western Australia.

New South Wales – East Lachlan

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The Company has four 100% owned projects covering an area of 1049km2 – Myall, Moorefield, Wellington North and Parkes (joint venture with JOGMEC) – comprising eight tenements (1049km2) in the East Lachlan Fold Belt province in central NSW. This Province is host to major gold and copper mining operations within the Ordovician Macquarie Arc, with significant metal endowments3 such as Newcrest’sCadia Valley (48.7Moz Au and 6.5Mt Cu), Evolution’s Cowal (8.35Moz Au) and China Moly – Sumitomo’sNorthparkes (3.8Moz Au and 3.4Mt Cu). Other mines and advanced projects in the region include Regis’McPhillamys (2.2Moz Au), Sandfire’s Temora (2.1Moz Au and 0.8Mt Cu), and Alkane’s Tomingley (0.8Moz Au).

The NSW portfolio was acquired from Gold Fields (world’s 7th largest gold miner) in 2016 and isprospective for porphyry gold-copper, epithermal and orogenic gold deposits and skarn and VHMS base metals ± gold deposits. Gold Fields spent more than $13.5m exploring the projects and identified more than 40 prospects and retains a 20% shareholding in Magmatic. The Company is focused on advancing priority, near surface gold prospects, while joint venturing its larger gold-copper porphyry projects.

Western Australia – Yamarna and Mt Venn

Magmatic’s Yamarna gold project is in the central part of the Yamarna greenstone belt and 15km from Gold Road Resources and Gold Field’s 5.88Moz4 Au Gruyere deposit. Gold Road announced a $23M (163,500m) 2018 greenfield exploration budget on its nearby Yamarna tenements.

The Company purchased the Mt Venn copper-nickel-cobalt project in March 2018 (ASX: MAG 11/04/2018), where exploration licence E38/2961 covers 60% of the Mt Venn Igneous Complex and is immediately along strike from the recent copper-nickel-cobalt sulphide discovery of the same name by Great Boulder Resources.

Please direct shareholder enquiries to:

David Richardson
Managing Director
Phone: +61 8 6102 2709
Email: [email protected]

Media enquiries to:

Michael Cairnduff
Cannings Purple
Phone: +61 406 775 241
Email: [email protected]

3 Metal endowment from: Phillips, G N (Ed), 2017. Australian Ore Deposits (The Australasian Institute of Mining and Metallurgy: Melbourne)

4 ASX: GOR 27/03/2018

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Competent Persons Statement

The information in this document that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Steven Oxenburgh who is a Member of the AusIMM (CP) and a Member of the Australian Institute of Geoscientists. Mr Oxenburgh is a full-time employee of Magmatic Resources Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person asdefined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves”. Mr Oxenburgh consents to the inclusion in the report of the matters basedon his information in the form and context in which it appears.

Additionally, Mr Oxenburgh confirms that the entity is not aware of any new information or data that materially affects the information contained in the ASX releases referred to in this report.

For readers of this thread I found this Magmatic Res May 2018 report which may be of interest....I hadn't seen reference to it in previous scripts on these threads....it could add to the present excitement with its high rock chip results pointing to possible further good future exploration results near the present area of interest :