Mt Carrington Scoping Study Shows A$514M NPV and 12-Year Mine Life

Legacy Minerals Retracts Previous Mt Carrington Production Targets

Legacy Minerals Holdings Limited (ASX:LGM) has pulled back its earlier production targets for the Mt Carrington Project, citing insufficient grounds under ASX Listing Rules to support the forward-looking statements. The company’s initial Scoping Study released on 4 May 2026 included production targets heavily reliant on Inferred Mineral Resources, which ASX rules restrict for investment reliance. In response, Legacy Minerals revised the study to increase the proportion of Indicated Resources to 71%, reducing the Inferred portion to 29%, and amended all related financial metrics accordingly.

Revised Scoping Study Highlights Robust Financial Metrics on a 12-Year Mine Life

The updated Scoping Study presents a 12-year mine life producing approximately 253,000 ounces of gold and 5.83 million ounces of silver, with a pre-tax net present value at a 7% discount rate (NPV7) of A$514 million under the Spot Case metal prices (A$6,500/oz gold and A$105/oz silver). The internal rate of return (IRR) stands at a healthy 38%, with a payback period of just 32 months from first production. These figures reflect a more conservative but compliant approach to resource classification, improving investor transparency.

Capital expenditure remains modest at A$220.5 million, benefiting from the project's brownfield status with existing infrastructure such as grid power, access roads, and tailings storage facilities. Operating costs are competitive, with an all-in sustaining cost (AISC) of A$1,188 per ounce of gold, placing Mt Carrington in the first quartile globally for cost efficiency. The project’s flotation processing plant uses a cyanide-free flowsheet, producing a bulk gold-silver concentrate suitable for third-party refining.

Targeted Drilling and Further Studies to Advance Mt Carrington

Legacy Minerals plans to progress Mt Carrington towards a Pre-Feasibility Study, focusing on targeted drilling to convert Inferred Resources to Indicated in key early mining areas. This drilling aims to increase geological confidence and support improved financing terms. Additional metallurgical and geotechnical work will refine processing recoveries and pit slope designs. The company also intends to explore opportunities to expand plant throughput and potentially include base metals such as zinc and copper in the project’s product suite.

The company’s CEO, Chris Byrne, emphasised the project's robustness across metal price cycles and highlighted multiple avenues for value enhancement, including near-mine resource extensions and optimisation of concentrate blends. Byrne also noted the involvement of Ausenco, a globally recognised engineering firm, in delivering the Scoping Study, lending credibility to the project's technical foundation.

Funding Outlook and Project Risks

Funding of approximately A$220.5 million will be necessary to bring Mt Carrington to production, anticipated to be sourced through a combination of debt and equity financing. While Legacy Minerals has a track record of raising capital, the company cautions that there is no guarantee of securing funds on favourable terms, and potential dilution of existing shareholders remains a risk. The company is also considering alternative strategies such as joint ventures or partial sales to realise project value.

Other risks include orebody variability affecting concentrate consistency, hydrology and dewatering uncertainties, closure planning complexities, and commodity price volatility. The Scoping Study’s confidence level remains at a preliminary scoping stage, with accuracy estimates ranging from -30% to +45%, underscoring the need for further detailed studies.

Significance of Resource Classification and Historical Context

The shift to a higher proportion of Indicated Resources reflects Legacy Minerals’ intent to provide a firmer basis for investment decisions, aligning with ASX and JORC Code 2012 standards. The geological setting at Mt Carrington, characterised by extensive, low-grade halos around higher-grade zones, supports a relatively straightforward conversion from Inferred to Indicated Resources with moderate drilling density. This contrasts with more erratic, high-grade orogenic gold deposits where resource confidence is harder to establish.

This approach follows the company's earlier 19-year mine life with 373koz Au Scoping Study, which had a longer mine life and higher production but a greater reliance on inferred resources. The current revision narrows the scope but strengthens the confidence in the project's fundamentals.

Legacy Minerals’ ongoing drilling programs at prospects such as Mascotte continue to feed into resource growth and conversion efforts, underpinning the company’s development pathway. The company has also recently clarified its share price movements amid assay result anticipation, reflecting active market interest in its progress pending assay results.