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Magnetite crystals are freestanding like lithium outcrops, and quite small and non-descript. Sometimes you can catch a gleam off one of the facets.
The magnetite large deposits are pretty easy to find, but if you don't have magnetite you probably don't have a PRAWN with a drill.
The BEST way to find magnetite down there is to get the range of your Scanner Room out to cover part of the JSC, and have the Scanner HUD Chip. Bu-u-t... If you don't have ANY magnetite yet, you don't have the HUD or the range upgrades.
You could temporarily build a Scanner Room in the Caves, but you would have trouble powering it. It would give you a local op base. Emergency power might be enough to get the initial job done. You could also deconstruct, reconstruct to re-up the emergency power and initial air.
Highly recommend that you use the first few bits you find to create the HUD and improve scan range. That will help you find enough more to finally build the S. Rifle.
Oh. And watch out for the crabsnakes. Stay low and stay near your SM. They are more territorial than agressive; and you are safest if you want to go near their mushroom for about 20 seconds right after they go into the nest.
You are a glutton for punishment.
Less risks in the JSC. And the visibility is better.
Seamoth ramming (with periodic use of repair tool) will very effectively drive off (or 'permanently discourage') the crabsnakes. No other threats in JSC except the occasional biter.
Not that I would turn down any M crystals I ran across while in the Blood Kelp for other reasons.