Legacy Iron Ore (ASX: LCY) has revealed that 27 out of 29 holes drilled at its Mt Celia project in Western Australia 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.
Mineralisation remains open and continues at depth, giving the company increased confidence that it will define additional resources at both Kangaroo Bore and Blue Peter.
Mt Celia is the focus of the Perth-based company’s activities at present, although Legacy Iron is also developing its iron ore, base metals and tungsten interests.
The company describes the latest intersections as “outstanding” and “significant”.
Highlights include 4m at 4.21 grams per tonne gold, 2m at 6.49g/t, 1m at 10.1g/t, and 7m at 8.58g/t.
The current gold resource stands at 3.47Mt at 1.68g/t for a contained 184,000oz.
Legacy holds 460 square kilometres 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 20Moz of gold deposits.
Some $6m held for developing Mt Celia mine
Mt Celia is located 40km south of the 8Moz Sunrise Dam mine, and the project 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 progress Mt Celia towards production.
Some $6 million of that will be directed toward developing a mining operation.
Mt Celia continues to be the focus of exploration, with detailed planning for upcoming resource expansion work.
A 2019 study identified a strong economic case for development, and potential to generate cash flows for either a stand-alone mine or trucking to an off-site plant, the company said in its recent annual report.
Metallurgical test work will begin in the second week of August to check metallurgical characteristics and enable development of an ore processing flow sheet.
Another 4,000m of drilling at the project is also planned.
Resource modelling and pit optimisation work will begin once results from that program become available.