Magellan is ideally located in the mineral-rich East Murchison Mineral Field in Western Australia approximately 30 kilometres west of Wiluna and 900 kilometres northeast of Perth. All of the infrastructure needed for the mine is close-by: a road runs through the property to the town of Wiluna; the Kalgoorlie Goldfields natural gas pipeline also passes through the town; water is available in local aquifers; a skilled labor force is readily available in Perth, 90 minutes by air; and the port of Esperance is 990 kilometres by road and rail to the south.

The climate is semi-arid, with dry periods of up to nine months expected in most years. Droughts have lasted for up to five years. Temperatures vary from very hot in summer to cool during winter. The region can be affected by high intensity summer storms, usually accompanied by widespread heavy rain. Average annual rainfall in the region is 250 millimetres.