Legacy Minerals confirms ‘exceptional’ new discovery at Bauloora
Backed by global gold giant Newmont Corporation, Legacy Minerals (ASX: LGM) has reported an “exceptional” new precious and base metals discovery at its flagship Bauloora project on New South Wales’ rich Lachlan Fold Belt.
Initial diamond drill assays have confirmed high-grade mineralisation at the Bluecap discovery, which has the potential to be a large low-sulphide epithermal deposit.
The discovery resulted from a 1650-metre diamond program across ten holes, testing the two kilometre long, gold-silver bearing epithermal Mee Mar vein.
Highlighted grades include 13 metres at 4.53 grams per tonne gold equivalent, including six metres from 8 g/t from 57 metres; and six metres at 3.56 g/t gold,10.95 g/t silver, 0.22 per cent copper and 6.47 per cent lead and zinc.
The drill holes also found “strongly elevated” levels of the pathfinder metals antimony and mercury, which support “textural observations and interpretation that drill holes have only tested the upper levels of the epithermal vein system.”
Previous Mee Mar drilling highlights included 3.8 metres at 3.91 g/t gold equivalent from 180 metres, including 3.8m at 0.93 g/t gold, 6.6 g/t silver, 0.28 per cent copper and 4.17 per cent lead and zinc.
The mineralisation appears to be open along strike and down dip.
Legacy chief executive Christopher Byrne said the drilling program had “exceeded expectations”, including identifying three potential shoots in the vein strike (two at Mee Mar and one at Bluecap).
“The Bauloora project continues to deliver exceptional results,” Mr Byrne said.
Mee Mar is the first of several high priority target areas to be diamond drill tested at Bauloora.
In early April, Legacy Minerals and Newmont Corp subsidiary Newmont Exploration entered a farm-in and joint venture agreement, by which Newmont provides $15 million for further drilling across Bauloora.
Under the terms of the deal, Newmont acquires 51 per cent of the prospect by spending $5 million within 48 months, including 4000 metres of drilling.
After that, Newmont can achieve 75 per cent ownership by spending a further $10 million on 8000 metres of drilling, also within four years.
Legacy notes that Newmont has extensive experience in discovering and developing epithermal systems, such as its formerly owned, 4.5-million-ounce Pajingo mine in northern Queensland and the 7.1-million-ounce Cerro Negro deposit in Argentina.
“Newmont’s global expertise will assist in rapidly advancing our exploration at Bauloora and Legacy Minerals looks forward to updating the market with the next stages of the exploration program in the coming weeks,” Mr Byrne said.