Magnetic Resources has released a feasibility report for its Lady Julie gold project in Western Australia, with low-cost gold production a key highlight.
The project, located in the Eastern Goldfields region, has a total mineral resource estimate of 20 million tonnes (Mt) at an average grade of 1.65 grams-per-tonne (g/t) for 1019 million ounces (Moz) over the nine-year life of mine.
Other highlights of the report include an estimated maiden mining reserve of 18Mt at 1.72g/t gold containing 997,300oz, and a pre-tax net present value (NVP) of $970m with an internal rate of return (IRR) of 45 per cent, assuming a $4000/oz gold price.
The report also highlights a Native Title Agreement signed with Traditional Owners, with primary mining leases and associated secondary approvals submitted and pending approval.
With resources expansion and the improving gold price, the project is considered extremely robust and remains a compelling case for rapid development, the report states.
The operation is said to comprise of three open pits, an underground mine and dedicated plant to process the gold, including all associated services and facilities.
Construction is expected to commence around the beginning of 2026, with plans for commercial production to begin in July 2027 – at a projected capital cost of $375m.
Water, power supply, and provision of a camp for the construction workforce have been identified as in need of further work, with work underway to address challenges.
The workforce at the new site will operate on a fly-in, fly-out (FIFO) basis, with accommodation being built to facilitate 300 personnel, with Laverton Shire Council said to be supportive of the development.
Commenting on the results of the feasibility study, Magnetic managing director George Sakalidis described the project as “one of the highest margin undeveloped gold projects in Australia”.
“The project’s strong financial return metrics are primarily driven by the extraordinary near-surface, high-grade nature of the Lady Julie Central and Lady Julie North 4 deposits,” he said.
The low-cost profile places the project, Sakalidis highlighted, in the bottom half of the cost curve of gold producers in Australia.
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