Magmatic's drilling follows recently completed geophysics, with earlier work (including shallow drilling), identifying gold and porphyry pathfinder anomalism associated with prospective alteration.
The Lady Ilse target zone covers an area of more than 1.8km by 1km.
Lady Ilse is 6km from Boda and 100km north of Cadia East.
The latter entails more than 50 million ounces and is described as Australia's largest gold mine and among the world's most profitable gold producers.
Magmatic raised A$5 million last month to fund its exploration.
New shares in the raising were issued at 30c each.
Shares in Magmatic were up 2.5% to 19.5c in afternoon trade, capitalising the company at $23 million.
