Legacy Minerals gets metallurgical testwork up and running at NSW gold-silver play

• Legacy Minerals beings metallurgical testwork at Mt Carrington gold-silver project
• Study looking at processing pathways ahead of Stage 2 scoping study
• Company also undertaking discovery and resource expansion drilling

Special Report: Legacy Minerals has kicked off a metallurgical study on its Mt Carrington gold-silver project in NSW, engaging leading engineering firm Ausenco to complete the works.

The project includes a significant amount of gold, silver, zinc, and copper hosted across several deposits within a large caldera setting.

Legacy Minerals (ASX:LGM) released a Stage 1 scoping study earlier this year demonstrating robust economics.

It estimated Mt Carrington would produce ~31,400oz of gold per annum for a total of ~172,600 ounces of gold, at an all in sustaining cost of A$1726/oz over an initial five-and-a-half-year production period.

Free cashflows averaged ~A$52.8 million per annum pre-tax during its first five years of operation, an IRR of 112% and a robust NPV of ~A$290.4 million.

The fresh metallurgical study is expected to inform the potential processing pathways for a Stage 2 scoping study of the project.

Legacy says Mt Carrington’s deposits have many multi-phase mineralising events which exhibit characteristics of epithermal, and intrusion-related porphyry-copper systems – compared to single-element historical production, which consisted of mainly gold and silver.

The bridging study could bring far more resources to the table. The initial study accounted for just 200,000 gold equivalent ounces out of 1.2Moz AuEq at the project, presenting clear potential to upscale and improve the quality of the future development.

More resource growth on the cards

LGM says this study work, based on the shallow resource defined to date at Drake, also demonstrates the exploration upside case for continued resource growth.

So far, exploration results across the project have returned intercepts including 1.71g/t gold, 6.9g/t silver, 1.12% zinc, and 7.26% copper.

“We have engaged leading engineering and consulting firm Ausenco, whose expertise will inform the optimal processing pathways to be considered for a Stage 2 Scoping Study,” LGM CEO and managing director Christopher Byrne said.

“Coupled with our ongoing exploration efforts, the team is moving quickly to build on the recently completed 2025 Mineral Resource Estimate and the Phase 1 Scoping Study.”

The Stage 1 Scoping Study demonstrated robust economics with an NPV8 of A$388 million and IRR of 141% at a $5000oz gold price.

“The Stage 1 Scoping Study also provided valuable information for potential resource growth through in-fill, expansion and exploration drilling,” Byrne said.

“We are optimistic about the upside potential that an optimised processing pathway may show, especially since the Stage 2 Scoping Study will assess the full 1.2Moz of gold-equivalent resources, approximately 1Moz more than included in the Stage 1 Scoping Study.”

Discovery drilling is also planned at greenfield epithermal-porphyry finds within the Drake Caldera, including Battery, Emu and Mascotte.

That will come alongside resource expansion drilling of brownfield targets at depth and along strike of high-grade gold, silver, and copper zones.

This article was developed in collaboration with Legacy Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.