Legacy Iron Ore pushing WA gold project toward production

Legacy Iron Ore LCY ASX WA gold project Yilgangi
A reverse circulation drilling program has commenced at Legacy Iron’s Yilgangi gold deposit.

Legacy Iron Ore (ASX: LCY) has announced a reverse circulation drill rig has arrived on site at its Yilgangi gold deposit in Western Australia and work is due to begin today.

The Yilgangi gold deposit forms part of the company’s South Laverton gold project which includes the Mt Celia, Yilgangi, Yerilla, Patricia North and Sunrise Bore tenements.

Legacy is planning between 10 and 12 holes for approximately 1,000m of drilling this month.

A previous field traverse sampling program has confirmed areas of the project for investigation.

Legacy said these promising drill-ready targets were generated from that sampling program in 2018-19 as well as from previous drilling.

Multiple early-stage targets were also identified through gold anomalies from surface sampling.

This new drilling program will run through to Christmas Eve.

The company said its results will increase confidence for further exploration drilling in 2021.

The drilling program is also planned to delineate additional mineralised zones at depth and along strike from the company’s Golden Rainbow deposit, which has a JORC 2008 resource.

Moving to production goal

Legacy chief executive officer Rakesh Gupta said the drilling will provide additional confidence in the region and has the potential to develop additional resources as satellite pits to the company’s main Mt Celia project.

“We continue to work towards the upgrading of resources at the Mt Celia project as we move towards our goal of beginning production,” he added.

In July, Legacy reported 27 out of 29 holes drilled at its Mt Celia project in WA had intercepted “significant” gold mineralisation.

The drill results also confirmed the continuity of mineralisation at the Kangaroo Bore and Blue Peter deposits within the project area.

Mt Celia is the main focus

Mt Celia is the focus of the Perth-based company’s activities at present, although Legacy is also developing its iron ore, base metals and tungsten interests.

Legacy holds 460sq km in the South Laverton region, with the project lying along the Keith Kilkenny Tectonic Zone and the southern part of the Laverton Tectonic Zone, the latter so far yielding 20 million ounces of gold deposits.

Mt Celia is located 40km south of the 8Moz Sunrise Dam mine, and Legacy’s ground contains several known gold occurrences.

The company completed an entitlement issue in January, which raised about $9.54 million to advance the board’s plan to advance the Mt Celia project towards production. Some $6 million of that will be directed toward developing a mining operation.

A 2019 study identified a strong economic case for development, and potential to generate strong cash flows for either a stand-alone mine or trucking to an off-site plant, the company said in its latest annual report.

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