Magnetic Resources (ASX:MAU) said recently completed underground optimization work has resulted in an increased production target for its Lady Julie gold project in Western Australia, according to a Thursday Australian bourse filing.

The company said a conceptual underground production target of about 13 million tonnes at 2 grams per tonne (g/t) gold has been defined, primarily from additional mineral resources associated with high-grade cores three and four, using an in-situ stope cut-off grade of 1.3 g/t gold.

Based on the current mine plan, the indicative underground mine life is 14 to 19 years at an average production rate of 710,000 to 920,000 tonnes per year, or 41,000 to 52,000 ounces mined, with maximum sustained production of 930,000 to 1.3 million tonnes per year over five years, the filing added.

Total underground mining costs are estimated at approximately AU$116 to AU$122 per ore tonne, including capital expenditure of approximately AU$181 million to AU$222 million, based on scoping-level assessments completed to date, the company added.

The company's board continues to support the Genesis scheme unanimously and recommends that shareholders vote in favor, in the absence of a superior proposal and subject to an independent expert concluding that it is in the best interests of shareholders.

The company's shares fell 1% in recent Thursday trade.