How Legacy Minerals’ Free-Peg of Nico Young Unlocks 1Mt Nickel and 100kt Cobalt

Legacy Minerals’ Strategic Acquisition

Legacy Minerals Holdings Limited has taken a significant step by securing exploration licence application ELA6901 over the Nico Young nickel-cobalt laterite deposit in central New South Wales. This acquisition follows the relinquishment of tenure by the administrators of Jervois Global Limited, a company that previously invested heavily in the project before entering liquidation.

The Nico Young deposit stands out as one of Australia’s largest nickel and cobalt resources, with an inferred mineral resource estimate of 167.8 million tonnes grading 0.59% nickel and 0.06% cobalt. This translates to roughly 1 million tonnes of contained nickel and 100,000 tonnes of cobalt, positioning the deposit as a nationally significant asset in the critical battery metals sector.

Asset Quality and Development Potential

Legacy Minerals’ acquisition is notable not only for the scale of the resource but also for the absence of royalties, encumbrances, or liabilities, providing the company with exceptional optionality. The extensive groundwork laid by Jervois, including over A$25 million in drilling, metallurgical testwork, and environmental studies, offers a robust foundation that Legacy can leverage to accelerate project advancement when market conditions improve.

Metallurgical studies indicate that heap leaching could recover between 75% and 80% of nickel and cobalt, a process that is less energy-intensive and potentially lower cost than alternative methods. Furthermore, the deposit contains zones enriched with scandium and possibly platinum group metals, which Legacy is actively investigating to enhance the project's value proposition.

Market Context and Strategic Outlook

Nickel and cobalt prices have been depressed due to oversupply, particularly from increased lateritic nickel mining and refining in Southeast Asia. Legacy Minerals’ CEO Christopher Byrne describes the acquisition as a “highly strategic, counter-cyclical move,” positioning the company to benefit from a future upswing in battery metals demand.

While Legacy’s core focus remains on its portfolio of gold, copper, and silver projects in NSW, including joint ventures with major players like Newmont and S2 Resources, the Nico Young project adds a critical dimension to its multi-commodity exposure. The company plans to minimize holding costs and seek a development partner to advance the project when nickel and cobalt prices recover.

Geological and Operational Highlights

The deposit comprises two main zones, Ardnaree and Thuddungra, with mineralisation extending from surface to depths of up to 98 meters. The lateritic profile includes hematitic and limonitic clays overlying saprolite and weathered serpentinite, with nickel and cobalt enrichment distributed through these layers. The project benefits from proximity to existing infrastructure, including roads, rail, and gas pipelines, which could facilitate future development.

Legacy Minerals acknowledges that the resource is currently classified as inferred, reflecting a need for further drilling and studies to upgrade confidence and support eventual ore reserve estimation. The company is also reviewing historical data and planning additional metallurgical and environmental assessments to refine the project’s development pathway.