Magnetic Resources (ASX:MAU) has received over $5.5M in placement funds and plans to use the cash to accelerate drilling programmes at its Lady Julie North 4 site, which it says has had promising thick gold intersections.

It now has three drill rigs now on site including two diamond rigs and one reverse circulation rig, and hopes to increase and upgrade the resource, and follow up promising thicker intersections including 96m at 1.3g/t from 54m. 

The company also says the Lady Julie tenements are strongly mineralised with 217 gold intercepts (1-19m) greater than 0.5g/t, which includes 94 greater than 1g/t, 34 greater than 2g/t, 20 greater than 3g/t and 13 greater than 4g/t.

Following the announcement, shares of Magnetic Resources were unchanged at $0.56.