Legacy increases Mt Celia gold resource after Blue Peter upgrades

Legacy Iron Ore ASX LCY Blue Peters gold Mt Celia resource upgrade

Junior explorer Legacy Iron Ore (ASX: LCY) will kick off an initial scoping study to assess its Mt Celia gold asset for mining potential after it increased the overall resource 140 per cent to a 184,100-ounce inferred resource.

The gold and base metals-focused company’s 181,100oz inferred resource estimate, prepared by SRK Consulting, is contained in 6.4 million tonnes with a grading of 1.68 grams per tonne gold.

West Perth-based Legacy also unveiled a new mineral estimate for the Blue Peter deposit today.

Blue Peter’s inferred resource was increased 157 per cent to an inferred resource of 51,100 ounces gold contained in 607,200 tonnes at 2.62g/t quality, with a cut-off grading of 1g/t.

The deposit was the site of mining activity last century, with a 1955 Department of Mines report revealing2421oz gold was mined from Blue Peter and Coronation between 1940 and 1945.

Shaft lines and waste piles are found at the site but SRK did not use historical workings at the site to deplete lode volume estimates, though it noted mines department reports indicate no significant depletions had occurred.

The Legacy-held Mt Celia asset is located on the Laverton Tectonic Complex about 40 kilometres south of the AngloGold Ashanti-operated Sunrise Dam gold mine in Western Australia.

The folded greenstone sequence, described as strongly faulted, forms part of the Edjudina-Laverton greenstone belt.

Sunrise is about 55km from the town of Laverton and produced about 216 ounces at 1.97g/t gold in 2015, with a then value of $US970/t ($1249.41/t in current Australian dollar terms.)

Another deposit at the Mt Celia asset, Kangaroo Bore, which Legacy updated the market on in November, contains a 133,000oz inferred gold resource at 1.48g/t grading, contained in 2.8Mt at a 0.7g/t cut-off grade.

Legacy today tipped its Kangaroo Bore deposit would become its next orebody to have its resource classification upgraded.

“Kangaroo Bore orebody will be first to upgrade given that a significant amount of (reverse-circulation) and (directional-drilling) drilling has already been done,” the company wrote.

Legacy told the market it planned to complete further upgrades to its resources at Mt Celia and an initial scoping study to investigate its mining potential.

In the statement, signed by Legacy’s chief executive Rakesh Gupta, the company revealed it planned to start the study in the next few weeks.

Legacy also reported there were several other exploration targets at Mt Celia that needed further work.

“Legacy plans to drill test some of the priority targets in the next few weeks,” the company said of the additional targets.

The company has previously said Mt Celia contains three orebodies found close by to each other.

Legacy securities were trading unchanged at 0.6c by early afternoon.

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