- Magmatic Resources has teamed up with Blue Cap Mining in an effort to speed up development on the North Iron Cap Gold Project
- Both companies have agreed to a strategic 50/50 partnership and will split the project’s future profits if both companies decide to mine
- The news comes after Magmatic announced it would consolidate its efforts to develop projects in WA after acquiring three gold and copper assets, one of which is the North Ironcap Project
Magmatic Resources has teamed up with Blue Cap Mining in an effort to speed up development on the North Iron Cap Gold Project.
Magmatic signed the agreement with the mining services contractor today, which will see A$300 000 put towards pre-production works and a further A$3 million earmarked to fund operations after the first phase of exploration.
The company announced the proposed agreement on August 26 2019.
Under the agreement, Magmatic and Blue Cap have agreed to a strategic 50/50 partnership and will split the project’s future profits, if they both choose to mine.
The news comes after Magmatic announced it would consolidate its efforts to develop projects in WA after acquiring three gold and copper assets, one being the North Iron Cap Project.
The company is beginning to transition away from exploration plays developed in East Lachlan, NSW after obtaining the Mt Venn and Yamarna projects in 2018.
Magmatic describes the North Iron Cap project as an advanced stage gold exploration asset. Situated north of Southern Cross, the project has already undergone extensive drill coverage and indicated substantial quantities of gold mineralisation exist near the surface.
After securing the asset back in June, Magmatic stated it would run further assessments to determine the project’s underlying risks as well as its economic benefits.
Blue Cap Mining has also published intentions to carry out drilling programs at the exploration play and get a better sense of its prospects.
Magmatic Managing Director David Richardson said the company was looking forward to developing its relationship with Blue Cap as the company focused on expanding its projects in WA.
“We are excited to be working with Blue Cap in moving the North Iron Cap Project towards production in the favourable current gold environment. We look forward to updating shareholders as the pre-production works progress,” he continued.
Magmatic opened at $A0.041 this morning but is since down 2.44 per cent.