Magnetite Mines (ASX:MGT) has diversified its South Australian asset base following the formal grant of Exploration Licence 7106 for the Manna Hill Gold Project.
The strategic acquisition, located approximately 100km northeast of the company’s flagship Razorback Iron Ore Project, marks a calculated expansion into the gold sector during a period of record-high spot prices.
The company secured the tenement at a low cost, positioning itself to capitalise on a "multi-commodity strategy" while maintaining its commitment to disciplined exploration.
The Manna Hill area is characterised by its historical significance and untapped potential.
Government records confirm the presence of past small-scale gold workings within the licence area, yet the project remains significantly underexplored by modern standards.
Previous activities primarily targeted shallow deposits, leaving deeper or more complex geological structures largely untested.
Managing Director Tim Dobson noted that the company’s geologists moved swiftly to secure the ground as soon as it became available, viewing it as a high-value opportunity to leverage current gold price backdrops.
Magnetite Mines will employ a cost-effective, staged review program to de-risk the project before committing to intensive exploration.
The immediate operational roadmap includes comprehensive data compilation, securing necessary site access approvals, and conducting initial field verification.
At the time of reporting, Magnetite Mines’ share price was $0.040.