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  • Magmatic Resources has discontinued its joint venture with Japan Oils and Gas Metals National Corporation
  • In three years, the Japanese company has spent approximately $2.7 million on the Parkes Project in NSW
  • Magmatic will keep the 100 per cent owned Parkes Project will continue its work there shortly
  • Magmatic is currently up 53.33 per cent and is selling shares for 12 cents apiece

Magmatic Resources was up as much as 66 per cent this morning, after announcing it discontinued its joint venture with a Japanese company.

Magmatic will keep the 100 per cent owned Parkes Project and the two licences of Alectown and Parkes East.

Over the past three years Japan Oils and Gas Metals National Corporation (JOGMEC) has spent approximately $2.7 million on advancing the project.

However, it’s not known why the joint venture was discontinued.

Under the joint venture, JOGMEC could have earned up to a 51 per cent interest in the project if they funded $3 million.

Magmatic’s Managing Director David Richardson is thankful for JOGMEC’s contribution to the project and is excited for the potential of Parkes.

“The $2.7 million spent on exploration advanced several key targets, particularly diamond drilling at the Buryan Copper-Gold porphyry target,” David said.

JOGMEC’s priority for the joint venture was copper targets and as such, Magmatic was unable to advance two significant gold targets, MacGregors and Stockman’s.

Parkes lies along the strike of Alkane Resources Tomingley mine and is also close to its Boda copper-gold porphyry discovery.

“Alkane’s recent Boda discovery (2 kilometres from Magmatic’s Wellington North Project) and recent orogenic gold discoveries south of their Tomingley mine (50 kilometres north of Magmatic’s Parkes Project), also highlight the great potential of the East Lachlan region for further major discoveries,” David added.

During the joint venture, Magmatic identified a 2 kilometre gold trend through MacGregors and MacGregors South including intercepts such as 10 metres at 1.25 grams per tonne of gold from 146 metres.

It completed a detailed aeromagnetic survey on EL7676 which identified new gold and porphyry copper gold targets, it also tested two of the copper gold targets.

At its Buryan Prospect, a 930.05 metre diamond drill hole was undertaken in May and intersected 10 metres at 0.49 grams per tonne gold from 448 metres, including 2 metres at 1.67 grams per tonne gold from 456 meters.

Despite this news Magmatic is currently up 53.33 per cent on the Australian Securities Exchange and is selling shares for 12 cents apiece at 12:32 pm AEDT.

MAG by the numbers
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