Legacy Minerals gets Thomson vote of confidence from Red Hill

• Red Hill acquires existing net smelter royalty over Legacy Mineral’s Thomson gold-copper project for $220,000
• Move indicates confidence in emerging belt-scale exploration opportunity for intrusion-related mineralisation
• LGM to continue to advance exploration with drilling underway

Special Report: Legacy Minerals has received a vote of confidence in its Thomson gold-copper project in northwest NSW after Red Hill Minerals acquired a net smelter royalty covering the project.

The 1.5% net smelter royalty over licences EL 9190 and EL 9194 was awarded to Eastern Metals as part of the company’s $200,000 acquisition of the project in 2024.

This NSR has now been purchased by Red Hill (ASX:RHI) for $220,000 plus GST, which hints at its confidence in the emerging belt-scale exploration opportunity.

Ongoing exploration and review of historical work by Legacy Minerals (ASX:LGM), which can purchase the royalty back for $6m, has demonstrated the potential for large-scale intrusion-related gold-copper systems across the project, particularly at the Cut-A anomaly.

There is also strong evidence that other such systems are present at similar targets across the project, which has similar characteristics to other major intrusion-related gold-copper districts such as Winu, Havieron and Hemi.

RHI is no stranger to the royalty game, recording revenue of $3.35m from the Onslow iron project in the March 2025 quarter and it acquired a 2% gross revenue royalty over the Sandstone gold project in late April 2025.

In September 2021, it sold its 40% interest in the Red Hill iron ore joint venture to Mineral Resources (ASX:MIN) for $400m in cash and a 0.75% royalty.

“We are pleased to see Red Hill Minerals acquire the Thomson royalty. The acquisition supports our team’s view that the Thomson project presents a large-scale, gold and copper discovery opportunity,” managing director Christopher Byrne said.

He added that recent results were comparable to several pre-discovery holes for significant intrusion-related gold deposits including De Grey’s Eagle deposit within the Hemi discovery.

Watch : Legacy scoping study shows golden hoard under Drake

Thomson project

The 5500km2 Thomson project offers LGM the opportunity to be the first mover in exploring a new intrusion-related gold and copper mineral system belt.

It includes the Cut-A anomaly, a coincident zone of elevated magnetic and gravity data that extends over a strike length of about 1000m in an east-west direction.

Previous explorers completed a single line of induced polarisation dipole-dipole over the highest magnetic feature and identified a zone of increased chargeability coincident with the elevated magnetic data.

While a deep 641.8m hole drilled by others failed to encounter massive sulphide base metals, a company review concluded that the potential for intrusion-related deposits had not been sufficiently considered or tested historically.

Further sampling is planned further up hole in a historical hole that returned 377m at 0.1g/t gold from a down-hole depth of 225m including better results of 7m at 1.2g/t gold from 287m and 41.95m at 0.4g/t from 420m.

Meanwhile, the Cut-B anomaly exhibits coincident elevated gravity and magnetic data which indicates a close spatial relationship between magnetic material and dense material.

This target strikes east-to-west more than ~900m.

While historical drilling to test the top of the main magnetic anomaly has returned some intriguing gold, silver and niobium hits, the adjacent gravity feature appears to remain untested.

LGM recently drilled two 600m deep holes at the F4 and Cut-B anomalies.

Initial observations at F4 indicate that the magnetic feature has been caused by hydrothermal pyrrhotite-bearing quartz veins and is not a lithologically derived magnetic feature.

Core processing and sampling are underway with results expected in six to eight weeks.

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.