Legacy Minerals (ASX: LGM) has entered into a strategic alliance with US company Earth AI to enhance the potential of its Australian battery metal projects through the use of artificial intelligence (AI) and machine learning.
Under a newly signed exploration alliance agreement, the pair will co-fund exploration over Legacy’s wholly-owned Fontenoy and Mulholland projects in New South Wales over an initial two-year period, with an option to extend for a further year.
San Francisco-based Earth AI will contribute up to $4.5 million of the total exploration costs and will be entitled to a net smelter royalty of up to 3% if a significant drilling discovery is made.
Earth AI is backed by two of Australia’s largest technology venture capital funds, AirTree Ventures and Blackbird Ventures.
Using AI to increase discovery potential
Legacy managing director Christopher Byrne said the alliance puts the company at the forefront of the exploration industry by utilising AI and machine learning to increase discovery opportunities through a vertically integrated approach.
“The technology metals industry is an ever-growing market and there is increasing recognition in the technology sector that exploration and discovery rates are failing to meet the demand for battery, technology and critical metals.”
“The Fontenoy and Mulholland projects present significant copper-nickel-cobalt-tin and platinum group element opportunities that will potentially help meet the critical battery metals demand and provide returns for our shareholders,” Mr Byrne added.
Legacy will retain 100% ownership of the tenements, although there is an option for Earth AI to purchase either project for US$1 million plus a 2% net smelter royalty to Legacy. This option will be available if Legacy does not spend US$250,000 per year from the second anniversary of the qualifying intercept, or if a resource is not defined.
Fontenoy and Mulholland projects
Multiple wide drill intercepts have defined a large copper and gold system at Legacy’s Fontenoy project. Mineralisation extends for more than 8km with numerous undrilled walk-up drill targets.
Significant drilling results from previous explorers have included 79m at 0.27% copper from 1.5m depth including 8.8m at 0.33 grams per tonne gold, and 26m at 0.44g/t gold from surface including 6m at 1g/t gold.
Mulholland lies within the emerging tin district north-east of Cobar, NSW. It is located 500m southeast of Sky Metals’ (ASX: SKY) growing tin-copper-zinc 3KEL prospect and less than 3km from the company’s tin-copper Doradilla prospect.
Tin mineralisation has been confirmed at Mulholland through two drill holes, which intersected 6m at 0.21% tin from 99.75m and 2m at 0.17% tin from 117m.
In addition, significant nickel intercepts from previous drilling includes 44m at 0.45% nickel from 42m, including 27m at 0.55% nickel.
Earth AI’s scope of work
Earth AI owns and operates its own drill rig based out of Young, only 15km from Legacy’s Fontenoy tenement in central NSW.
Earth AI plans to implement its AI deposit targeting system to generate drill targets across Legacy’s tenements. Once identified, Earth AI will follow up with on-ground geophysical and geochemical work before drill testing.