Magmatic Resources Ltd (ASX:MAG) is trading higher after generating a sizeable copper target at the Black Ridge trend of the wholly-owned Parkes Project in Central West New South Wales, sketching out a 6-kilometre-long trend with reconnaissance mapping and sampling.
The Black Ridge trend hosts multiple small-scale historical workings with outcropping copper mineralisation occurring simultaneously with a large copper-in-soil anomaly.
MAG used portable x-ray fluorescence (pXRF) and rock chip sampling to gather further evidence of the copper trend, the latter of which generated a result of 6.5% copper.
The company says the trend is mostly untested below the surface, with just three tightly spaced reverse circulation (RC) holes completed at a single location thus far.
Investors have warmed to the progress with shares as much as 23.4% higher in early ASX trading to A$0.074.
Potential for major new discovery
“I am very pleased to see on-ground exploration work recommencing at our 100%-owned Parkes Project,” Magmatic Resources managing director Dr Adam McKinnon said.
“The Black Ridge prospect is one of the many targets at Parkes that has the potential to develop into a major new discovery.
“Located only 15 kilometres southeast of the Northparkes Mine, in rocks that are clearly fertile, I’m actually a little surprised how under-explored the region has been.
“Black Ridge combines kilometre-scale copper-in-soil anomalism, fantastic results from recent rock chip sampling and historic workings with outcropping mineralisation.
“With further work at the prospect to include a major IP geophysical survey, I am excited to see what the area may produce.”
MAG has interpreted the new target to be a surface copper-gold-silver anomalism extending in parallel with the Parkes Thrust, a fertile copper area with outcropping mineralisation and multiple small-scale historical workings.
The company will now undertake further mapping, soil and rock chip sampling, as well as a 23-line-kilometre induced polarisation (IP) survey, which will begin this month with the goal of identifying drilling targets.
Magmatic believes it is well placed to pursue its accelerated exploration efforts at the Parkes Project, with the Myall Project to the north now fully funded through a joint venture agreement with Fortescue (ASX:FMG), and $6.34 million cash in hand at the end of the June quarter.
Read: Magmatic Resources new JV with Fortescue for Myall Project approves initial work program