Diamond drilling has started to test a mafic intrusive complex defined by a large soil anomaly and coincident gravity anomaly at the Fontenoy project. Pic: Getty Images
Legacy Minerals starts testing PGE treasures at Fontenoy
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- A diamond drill rig has arrived onsite ahead of schedule at Legacy’s Fontenoy project
- Three holes are planned to follow up recent PGE intersections
- Drilling assays for two completed drill holes are expected mid-November
Special Report: A diamond drill rig has arrived onsite at the Fontenoy project in NSW to follow up on one of the largest intersections of PGE mineralisation in the Lachlan Fold Belt.
Earlier this month, Legacy Minerals (ASX:LGM) received the result of an an eye-boggling 120m wide intersection at 0.30g/t 3E PGE from 388m at the Fontenoy project, uncovering what could be the start of a potentially huge magmatic-related sulphide deposit.
What makes it even more intriguing is that this type of mineralisation, which potentially has higher grades, a suite of valuable metals and lower extraction costs, has never been recognised in the Lachlan Fold Belt.
The region plays host to major laterite deposits with nickel-cobalt and scandium, and while the Fontenoy project has previously been explored with companies targeting these deposits, this is the first time anyone has tested the potential for PGE’s or magmatic related nickel-copper sulphide mineralisation.
What’s more, the find takes place amid highly conducive macro conditions, with palladium jumping 9% to a near 10-month peak on the back of potential supply sanctions on Russia from the US and its allies.
Russia currently supplies about 40% of the high-demand global palladium market.
Fontenoy drilling kicks off
Drilling is now underway to follow-up that intersection, which included 10m at 1.2g/t 3PGE from 288m.
The three-hole campaign, which can be extended to five holes for 3,250m of drilling, is fully funded under a joint venture with San Francisco based Earth AI.
The terms include a minimum commitment of 3,500m of diamond drilling and expenditure of $4.5m over four years to earn an 80% interest.
At the completion of the JV, LGM has the option to contribute, dilute, or be loan carried to commercial production with 20% ownership.
Discovery opportunity
“We are delighted to have another drill campaign underway at Fontenoy, representing the third drill campaign this year at the project and coming less than two weeks after signing a JV with Earth AI,” LGM CEO and managing director Christopher Byrne said.
“The drilling is fully funded by Earth AI to follow up on the discovery of platinum group elements earlier this year.
“The drill results are particularly exciting given the soil footprint, which is greater than 4km2 at 10ppb 3E PGE and remains open in all directions,” he said.
“With assays from two recently completed drill holes due in November, the Fontenoy Project presents a significant discovery opportunity with ongoing news flow.”
What else is coming up?
Drilling assays for two completed drill holes are expected mid-November.
These two holes are following up previous holes in which petrographic analysis of the mineralised interval confirmed that mineralisation is a magmatic-related nickel-copper sulphide style with pentlandite, chalcopyrite and pyrrhotite.
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.
