Legacy’s thick PGE hit paves way for JV with Earth AI to accelerate Fontenoy exploration
Mining
Mining
Special Report: Legacy Minerals has wrapped up Phase 1 drilling at its Fontenoy project with a 120m intersection grading 0.3g/t platinum group elements, one of the largest intersections of this type in NSW’s Lachlan Fold Belt.
The intersection from a down-hole depth of 298m includes a 10m zone at 1.2g/t 3E PGE from 388m in hole EFO7D is hugely exciting as magmatic-related PGE-nickel-copper sulphide deposits can be very large and valuable as evidenced by discoveries such as Nova-Bollinger and Julimar.
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 region.
This result was returned from the last of three diamond core holes that San Francisco- based metals exploration company Earth AI had completed for Legacy Minerals (ASX:LGM). And that was to test the interpretation of a mafic intrusive complex with the potential to host magmatic related nickel-copper sulphide and PGE related mineralisation.
Said potential was identified after Earth AI used its artificial intelligence deposit targeting system to generate a range of drill targets across the tenement.
Given the success of this effort, LGM has signed a joint venture that gives Earth AI the opportunity to earn up to 80% in the Fontenoy project by spending $4.5m on exploration – including at least 3500m of diamond drilling – over four years.
“The drill intersection of 120 metres grading 0.30g/t palladium, platinum and gold is a fantastic result. The intercept highlights the scale and potential of the new magmatic PGE-nickel-copper “Gramont” discovery made by Earth AI earlier this year,” managing director Christopher Byrne said.
“With the Earth AI team having demonstrated their ability to make discoveries utilising artificial intelligence, they are considered the right team to progress this exciting discovery to the next stage under a new Joint Venture. This $4.5 million JV agreement will continue to unlock the value of the Fontenoy project at an accelerated pace.
“With Legacy Minerals’ focus on delivering a hybrid discovery model – encompassing 100%-owned projects and projects externally funded through joint ventures – this is now the third deal secured by the company that gives us the option to be 20% loan carried through to commercial production.
“With Legacy Minerals’ focus on gold, copper, and silver, the exposure to magmatic PGE-nickel-copper styles of mineralisation provides fantastic diversity to our portfolio. The significance of this discovery for shareholders is further underpinned by the recent inclusion of platinum group elements in the Australian and global list of critical minerals and strengthening commodity price.”
Assays are currently pending for a further two completed drill holes.
The JV also has government approvals for up to five holes totalling 3,250m and has mobilised drill rigs for the drilling of three holes in November.
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.