Legacy Minerals Advances Mt Carrington with A$514M NPV and New Gold-Silver Discovery

Mt Carrington Scoping Study Validates Economic Potential

Legacy Minerals (ASX:LGM) has delivered a compelling economic case for its Mt Carrington Project in northern NSW, with a scoping study revealing a pre-tax NPV7 of A$514 million and an IRR of 38% based on spot commodity prices. The 12-year mine life is projected to produce 253,000 ounces of gold and 5.83 million ounces of silver through a 1 million tonne per annum processing plant, generating nearly A$1 billion in pre-tax free cashflow.

The operation boasts a low initial capital expenditure of A$220.5 million and promises a payback period of just 32 months from first production. 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 of cost curves. The project’s low strip ratio of 3.7:1 and straightforward open-pit mining and flotation processing further underpin its economic attractiveness.

New Discovery at Mascotte Extends Resource Potential

Exploration momentum continues with the confirmation of a new gold-silver epithermal mineralised system at the Mascotte Prospect, located outside the current Mt Carrington Mineral Resource. Drilling assays delivered high-grade intercepts including 9.7 grams per tonne gold and broad mineralisation such as 40 metres at 1.0 g/t gold, highlighting the discovery’s scale and continuity.

Importantly, the company has secured NSW Government approval for a second phase of drilling comprising eight diamond holes targeting structural and geochemical extensions. This follow-up program is set to deepen understanding of the system and potentially expand the resource base.

Emu Copper-Gold Drilling Marks First Modern Test

Legacy Minerals has commenced an eight-hole, 4,000-metre diamond drilling campaign at the Emu Copper-Gold Prospect, aiming to test porphyry and epithermal targets interpreted from recent geophysical surveys. This represents the first modern drill program at Emu in over 50 years, focusing on copper mineralisation historically known in the area.

The program is expected to run over the next three months, with further drilling anticipated based on results. The Emu Prospect lies within the broader Mt Carrington caldera and offers a complementary exploration avenue alongside gold and silver targets.

Strategic Collaborations and AI-Driven Targeting

In a bid to sharpen exploration efficiency, Legacy has entered a research collaboration with the CSIRO, Australia’s national science agency. Supported by a CSIRO Kick-Start grant, advanced mineralogical techniques such as SEM-TIMA and LIBS are being applied to better understand the structural controls and alteration patterns at Mt Carrington, aiding targeting and metallurgical insights.

Complementing this, AI-assisted targeting software has identified 38 priority gold-silver-copper targets across the project area, validating known trends and uncovering new prospects. These data-driven insights are expected to guide progressive drilling campaigns and resource growth.

Portfolio Management and Regional Exploration Progress

Beyond Mt Carrington, Legacy Minerals has inked a binding farm-in agreement with Aurelia Metals (ASX:AMI) over its Cobar Project, allowing Aurelia to earn up to 90% by funding exploration. This partnership leverages Aurelia’s existing infrastructure and expertise in the Cobar Basin, potentially accelerating project advancement.

Meanwhile, an initial 885-metre drilling program has begun at the McMahons Reef Prospect within the Harden Gold Project, funded by Hill Tops Gold under a farm-in agreement. The drilling targets extensions to high-grade historical gold mineralisation, with assays expected in the September quarter.

The company also regained full ownership of the Thomson Project after Rio Tinto Exploration withdrew from its option agreement. Legacy plans to reassess the project’s potential for intrusion-related gold mineralisation, particularly given encouraging historical intercepts.

In a portfolio rationalisation move, Legacy divested its non-core Glenlogan Project for A$150,000 in cash plus contingent payments tied to future resource milestones, allowing the company to focus resources on its flagship Mt Carrington development.

Cash Position and Expenditure

At quarter end, Legacy Minerals held A$6 million in cash. The company reported net cash outflows from operating activities of A$512,000 and investing activities of A$1.865 million, primarily driven by exploration and evaluation expenditure totalling A$1.81 million. Financing inflows were modest at A$28,000, reflecting ongoing capital management amidst active exploration.