Key Highlights

  • The nine-hole RC programme totalled 1,980 metres at the Weebo project.
  • Hole OTRC007 returned 5 metres at 7.78 g/t gold from 184 metres.
  • Mineralisation at Otto 2 is defined over 320 metres of strike and remains open.
  • Within the broader intercept, 2 metres at 18.2 g/t gold accounts for most of the metal.

Magmatic Resources (ASX:MAG) reported on 9 November results from a nine-hole reverse circulation (RC) drilling programme totalling 1,980 metres at its Weebo project in the Yandal greenstone belt of Western Australia. The programme tested the Otto 2, Ockerburry 3 and Scone Stone West prospects, and the best result came from Otto 2.

Hole OTRC007 returned 5 metres at 7.78 g/t gold from 184 metres, including 2 metres at 18.2 g/t gold. Higher in the same hole, it also intersected 2 metres at 4.04 g/t gold from 144 metres, including 1 metre at 5.79 g/t gold. The 2-metre sub-interval at 18.2 g/t gold accounts for most of the metal in the broader 5-metre result, showing how the grade is concentrated within the zone.

Mineralisation over 320 metres

The company said gold mineralisation at Otto 2 has now been defined over 320 metres of north-south strike and remains open to the north, to the south and at depth. In exploration, "open" means drilling has not yet found the limits of the mineralised zone in those directions, not that mineralisation is known to continue.

If that relationship holds, geophysics could help Magmatic target further drilling along strike and down dip more efficiently.

Other prospects

At Ockerburry 3, drilling returned 3 metres at 0.7 g/t gold from 212 metres along a 100-metre north-north-west trend. At Scone Stone West, the best result was 1 metre at 0.51 g/t gold from 55 metres. These are low-grade results, but they provide information on where gold-bearing structures exist across the project. Weebo is 100% owned by Magmatic.

RC drilling, used for this programme, recovers rock chips rather than intact core. It is a cost-effective way to test targets at depth but provides less structural detail, which is one reason the company plans to follow up with diamond drilling.

Why it matters

The Yandal belt is an established gold-producing region, and a high-grade intercept at depth within a zone that remains open provides a basis for further drilling at Otto 2. The 18.2 g/t gold sub-interval shows the system can carry high grades locally, while the second, shallower interval in OTRC007 indicates there may be more than one mineralised position in the hole. It also gives the company a defined position from which to step out with further holes.

Results like these are typical of early-stage exploration, where a small number of holes begins to outline a target. A consistent link between gold and geophysical responses would be useful because it can reduce the cost of finding the best positions to drill.

Limitations and next steps

The programme was small, with nine holes, and the most encouraging grades came from a single hole. The 5-metre and 2-metre intervals are narrow, and without true width information it is not possible to judge the thickness of the mineralised zones. There is no mineral resource at Otto 2, and the results do not demonstrate continuity of grade along the 320-metre strike or that an economic deposit exists.

Magmatic said the next steps are wireline logging at Otto 2 and Ockerburry, which collects downhole geophysical data from existing holes, followed by further RC and diamond drilling. Diamond drilling produces core that can reveal the orientation and structure of mineralisation, which may help the company estimate true widths and refine its model of how the gold at Otto 2 is controlled.