Legacy Minerals advances Bauloora gold-silver project with Newmont joint venture
Advanced exploration at the Bauloora gold-silver project in New South Wales dominated June quarter activities for Legacy Minerals (ASX: LGM).
Early in the period, the company announced it had entered a $15 million joint venture agreement with Newmont Exploration which would allow for an initial 51% project farm-in subject to a $5 million exploration spend and completion of a 4000m drilling program within the next two years.
If the initial earn-in period is successful, Newmont will be eligible to boost its equity to 75% following an additional $10 million spend and 8000m drilling program.
Extensive exploration program
Under the joint venture, the partners will conduct an extensive and multi-faceted exploration program across Bauloora and the results will be used to plan drill campaigns for the remainder of the year.
A large, audio-magnetotellurics (AMT) geophysical survey comprising 83 line-kilometres commenced over 10 square kilometres of the Bauloora vein field with the aim of defining resistive ‘feeder structures’ which may host high grades of gold-silver.
AMT is a technique which has successfully targeted low sulphidation epithermal gold-silver deposits around the world and is expected to provide visibility at Bauloora to depths of more than 1km.
Fixed wing magnetics and radiometrics will also be flown across the 330sqkm project area and will comprise 7000 line-km flown at 50m spacings.
Detailed geological mapping of the known low-sulphidation epithermal gold-silver-bearing vein field is expected to start in the coming months and will focus on delineation of surface vein trends, lithological boundaries and structural controls to vein deposition.
Initial diamond drilling at Bauloora during the quarter returned high-grade gold-zinc-lead results and discovered the Bluecap prospect where best assays were 13 metres at 4.53 grams per tonne gold equivalent including 6m at 8g/t gold equivalent from 57m containing 13m at 1.66g/t gold, 6.68g/t silver, 0.14% copper and 4.23% lead-zinc and 6m at 3.56g/t gold, 10.95g/t silver, 0.22% copper and 6.47% lead-zinc.
Drilling of 10 holes for 1649m focused on testing of the 2 kilometre-long gold-silver bearing low sulphidation epithermal Mee Mar vein where rock chip samples have previously returned elevated levels of gold-silver.
The prospect is the first of several high priority target areas at Bauloora to be tested with diamond drilling.
Black Range exploration
During the quarter, Legacy conducted an exploration program at the Black Range high-priority epithermal project located 65km from Bauloora.
Black Range has been identified as an underexplored and highly-prospective epithermal region which has geological similarities to Bauloora but has been historically underexplored.
Legacy said the project presents a large area hosting low-to-intermediate sulphidation mineralisation in association with large-scale (up to 2.5sqkm) silica-sericite-pyrite alteration zones.
In mid-June, Legacy divested its non-core Mulholland nickel-tin tenement to private company Karawara Minerals so it could focus on its core projects at Black Range and Bauloora.
The Mulholland licence was originally pegged in December 2021 as free ground and represented a zero-dollar acquisition cost.
Legacy had not conducted any on-ground exploration during its ownership period.
Karawara plans to use cashflow from the restart of its Broula magnetite mine to fund critical minerals exploration at its central NSW assets including Mulholland.
Legacy’s exploration and evaluation expenditure during the June quarter totalled $425,000 which comprised drilling and ancillary costs of $48,000; geophysical programs ($163,000); geochemistry work ($2000); licence fees ($17,000); land access and compensation ($21,000) and other costs including salaries and sub-contractors ($174,000).
Payments to related parties and their associates totalled $169,520 for salaries, superannuation and director’s fees.
There were no substantive mining production and development activities during the quarter.
The company’s cash balance at end June was $1.6 million (a $200,000 increase on the March quarter) and leaves it in a favourable financial position to carry out planned exploration activities.