Legacy Iron Faces Uncertainty as Heap Leach Project and Financing Develop

End of Phase I Mining Marks Strategic Pivot

Legacy Iron Ore Limited (ASX:LCY) has officially closed out Phase I mining operations at its Mount Celia Gold Project, completing ore haulage to Paddington Gold Pty Ltd and concluding activities under the Right to Mine (RTM) Agreement. This milestone sets the stage for a strategic shift towards developing an owner-operated heap leach processing facility, with a Pre-Feasibility Study (PFS) on track for completion by mid-2026. The company is leveraging substantial low-grade stockpiles amassed during Phase I as a feed source to underpin early cash flow generation from heap leach operations.

Mining at Mount Celia produced 369,228 tonnes at 1.34 g/t gold, containing approximately 15,951 ounces, with ore sales of 383,732 tonnes yielding 14,998 recovered ounces. These figures represent a significant ramp-up from the prior year and reflect operational progress at the Blue Peter and Kangaroo Bore deposits. The completion of mining under the RTM framework follows a series of incremental resource updates and drilling campaigns aimed at refining geological models and expanding the resource base.

Exploration and development drilling completed 6,819 metres over 248 holes during the year, feeding into an updated Mineral Resource Estimate (MRE) that boosted total contained gold in the Measured and Indicated categories by 77% to 160,434 ounces, and total resources to 390,150 ounces at 1.38 g/t. This resource growth provides a robust foundation for further mine development and processing optimisation. The company’s recent resource upgrade was highlighted in the market in April 2026, underscoring the potential for continued expansion of the Mount Celia gold inventory Legacy Iron Ore Lifts Mt Celia Gold Resource by 53% as Heap Leach Study Advances.

Heap Leach Project Advances with Metallurgical and Environmental Studies

Legacy Iron Ore is progressing heap leach metallurgical test work and engineering design, with environmental studies and site infrastructure planning well underway. The PFS will evaluate heap leach and gold recovery plant options, aiming to unlock value from lower-grade ore and improve project economics. The company has engaged key stakeholders including potential financiers and engineering firms to support project funding and delivery.

Heap leach pad design has been completed by Tailex, while plant design work by Mincore supports the working approval application submitted to the Department of Water and Environmental Regulation. Stakeholder engagement, notably with the Native Title group, has been conducted to facilitate project approvals. The company also plans to explore longer-term processing options such as Carbon-in-Leach (CIL) to establish Mount Celia as a regional processing hub for gold projects in the Laverton area.

Mount Bevan Iron Ore Joint Venture Progresses Feasibility

Beyond gold, Legacy Iron Ore’s Mount Bevan Iron Ore Project, held in joint venture with Hancock Magnetite Holdings Pty Ltd, is advancing its Forward Works Program to further define, optimise, and de-risk the project. The JV recently secured Mining Lease M29/448 and completed extensive environmental and hydrological surveys. Metallurgical testing indicates potential for a premium Direct Reduced Iron product, with a 10% increase in the total Mineral Resource Estimate to 1,291 million tonnes reported.

Ownership now stands at 63.43% Hancock and 36.57% Legacy Iron, following Hawthorn Resources Limited’s conversion of its equity to a royalty interest. The JV is evaluating logistics and power options, including rail and port infrastructure upgrades, to support future development. Exploration for lithium and other critical minerals within the Mount Bevan tenements is ongoing, with initial drilling intersecting pegmatites weakly enriched in lithium. Future actions will depend on market conditions for spodumene and other minerals Legacy Iron Wraps Phase I Mining at Mount Celia, Advances Mount Bevan Feasibility.

Financial Performance and Corporate Developments

For the financial year ended 31 March 2026, Legacy Iron Ore reported a loss of $0.56 million on revenue of $88.6 million, primarily derived from ore sales and income under the RTM Agreement. The company maintained a cash balance of $8.54 million, reflecting prudent financial management during the transition phase. Mining expenses and selling costs rose in line with increased production and sales volumes, while depreciation and amortisation charges declined following the cessation of mining activities.

The company underwent several board and executive changes, including the appointment of Dr. Ranajit Das as Chief Executive Officer in July 2025 and the retirement and appointment of several non-executive directors. Non-executive directors appointed by major shareholder NMDC Limited waived their fees, reflecting ongoing shareholder alignment. Legacy Iron Ore continues to maintain compliance with environmental regulations and risk management frameworks, with no reported breaches during the year.

Exploration Across Diverse Project Portfolio

Legacy Iron Ore’s exploration footprint extends beyond Mount Celia and Mount Bevan, encompassing several gold prospects within the South Laverton region such as Yilgangi, Yerilla, Patricia North, and Sunrise Bore. These projects are positioned as potential satellite deposits to the Mount Celia hub, with ongoing geophysical surveys, heritage clearances, and drilling campaigns planned to expand resource definitions.

In the East Kimberley region, underexplored tenements including Koongie Park, Ruby Plains, Taylor Lookout, and Sophie Downs are being evaluated for base metals, rare earth elements, and tungsten mineralisation. Recent geophysical surveys and rock chip sampling have identified multiple anomalies warranting follow-up drilling and detailed geological mapping. The company’s approach balances near-term development with longer-term exploration potential across its portfolio.

Legacy Iron Ore’s methodical advancement of its projects is supported by independent competent persons and rigorous adherence to JORC reporting standards, ensuring transparency and reliability of resource and reserve estimates.

While the company’s transition from mining to processing marks a critical inflection point, the success of its heap leach and broader processing strategies will depend on upcoming feasibility outcomes, financing arrangements, and prevailing commodity prices. The Mount Bevan JV’s staged approach to de-risking and infrastructure planning similarly underscores the cautious optimism embedded in Legacy Iron Ore’s growth trajectory.