Legacy Iron reports significant intercepts at Mt Celia, confirms extension of strike

by Leena Thomas
Image: Legacy Iron Limited

Legacy Iron Limited (ASX: LCY) announced that the intercepts from the drilling at the Mt Celia project in Western Australia show extensions of mineralisation along strike at Blue Peter deposit and confirm parallel lodes at Kangaroo Bore deposit.

LCY said that gold was intercepted in 27 of 39 RC holes drilled. Significant intercepts include 11 metres @ 0.85 g/t Au; 2 metres @ 2.88 g/t Au; and 6 metres @ 2.73 g/t Au.

The company said that encouraging drilling results and ongoing geotechnical and metallurgical studies is driving the project to the next level. LCY said that continued RC drilling is planned for Mt Celia in the first quarter of 2021.

The company reported that it has successfully engaged with the stake holders of the recently applied Mining Lease and has entered into an agreement to ensure early grant of the lease.

Mt Celia project

The Mt Celia project in Western Australia is one of LCY’s tenements within the South Laverton project area, where the company holds some 460 square kilometres of prospective ground.

The project is situated on the eastern margin of the Norseman-Wiluna Achaean Greenstone Belt within the Linden Domain of the Eastern Goldfields Province of the Yilgarn Craton, and lies within the Laverton Tectonic Zone some 40km south of the Sunrise Dam gold mine (12Moz gold resource).

The project contains two JORC compliant gold resources. These are at Kangaroo Bore and Blue Peter deposits.

The Mineral Resource Estimate at Mt Celia Project as of March 2018 is as below.

The Mt Celia gold project was last drilled in May 2020 by Legacy Iron and produced strong results with good continuity across both deposits. The company then followed up with drilling in September 2020, and has now reported encouraging results.

Significant intercepts confirm extension of strike

Legacy Iron Limited reported that gold was intercepted in 27 of the 39 RC holes drilled for 3,324m. The company said that the results from the drilling suggest the Mt Celia mineralisation has potential for the strike length to be greater than previously delineated.

Significant intersections include BKR030 – 2 metres @ 1.3 g/t Au from 82 metres; BKR030 – 11 metres @ 0.85 g/t Au from 89 metres; BKR030 – 5 metres @ 0.67 g/t Au from 119 metres; BKR030 – 2 metres @ 2.88 g/t Au from 132 metres; BKR031 – 4 metre @ 1.33 g/t Au from 108 metres; BKR031 – 6 metres @ 1.5 g/t Au from 124 metres; BKR033 – 12 metres @ 0.75 g/t Au from 54 metres; BKR035 – 1 metre @ 1.62 g/t Au from 61 metres; BKR036 – 3 metres @ 0.63 g/t Au from 101 metres; BKR037 – 1 metre @ 2.49 g/t Au from 87 metres; BKR040 – 1 metre @ 1.14 g/t Au from 10 metres; BKR041 – 2 metres @ 0.61 g/t Au from 15 metres; BKR042 – 4 metres @ 0.6 g/t Au from 29 metres; BKR042 – 2 metres @ 0.67 g/t Au from 38 metres; and BKR043 – 4 metres @ 1.27 g/t Au from 24 metres.

Other importnat hits include BKR044 – 3 metres @ 0.53 g/t Au from 52 metres; BKR044 – 11 metres @ 1.03 g/t Au from 80 metres; BKR045 – 6 metres @ 1.41 g/t Au from 59 metres; BKR045 – 5 metres @ 1.11 g/t Au from 69 metres; BKR045 – 3 metres @ 0.65 g/t Au from 90 metres; BKR047 – 3 metres @ 3.0 g/t Au from 30 metres; BKR047 – 13 metres @ 1.26 g/t Au from 74 metres; BKR047 – 8 metres @ 1.32 g/t Au from 108 metres; BKR047 – 3 metres @ 3.0 g/t Au from 30 metres; BKR048 – 5 metres @ 2.62 g/t Au from 93 metres; BKR048 – 3 metres @ 3.44 g/t Au from 101 metres; BKR049 – 2 metres @ 1.0 g/t Au from 92 metres; BKR050 – 4 metres @ 0.76 g/t Au from 29 metres; BKR051 – 2 metres @ 1.98 g/t Au from 18 metres; BKR052 – 2 metres @ 2.21 g/t Au from 44 metres; (Including 1m @ 1.85 g/t from 13m, 1m @ 2.09 g/t from 29m & 1m @ 4.23 g/t from 40m); BKR055 – 3 metres @ 0.84 g/t Au from 48 metres;  BKR060 – 2 metres @ 1.4 g/t Au from 33 metres (Including 1m @ 1.15 g/t from 15m); BKR061 – 1 metre @ 1.03 g/t Au from 15 metres; BKR063 – 2 metres @ 0.63 g/t Au from 52 metres; BKR064 – 6 metres @ 2.73 g/t Au from 39 metres; BKR066 – 4 metres @ 2.4 g/t Au from 24 metres; and BKR067 – 3 metres @ 0.84 g/t Au from 51 metres.

LCY said that these significant intercepts provide an opportunity to potentially extend the known Mt Celia inferred resource, with early indications showing the Blue Peter and Kangaroo Bore JORC resources are likely to grow.

The company said that drilling has shown a total added extension of approximately 60 m of strike length north and south of the Blue Peter main ore body and shows potential of continuity into the Blue Peter South mineralisation. Also encouraging is mineralisation in parallel lodes in the NE and SW portions at the Kangaroo bore deposit.

Kangaroo Bore deposit

The company said that the Kangaroo Bore drilling results confirmed prospective NE and SW mineralisation parallel to the main ore body potentially are associated gold rich stockwork, shown in drill line BKRC031, 30, 33. The infill drilling has also confirmed continuity in the centralised portion of Kangaroo Bore deposit.

Blue Peter deposit

LCY said that the drilling at Blue Peter north aligned the gold mineralisation from historic drilling with the new drilling. The company said that at Blue Peter, holes (BKRC060, 61) with good intercepts open the possibility of continuation of ore zones between the BP main and Blue Peter South.

Coronation deposit

LCY reported that holes BKRC049, 50, 51 produced continued mineralised intersections along strike at the Coronation deposit indicating potential growth at this deposit.

2020 drilling completed

The company said that the recent results complete all planned 2020 drilling campaigns for the Mt Celia Gold project, with preparation commencing for additional drilling in early 2021.

Updates and next steps

LCY announced that the recent drilling data will be combined with all historical drilling data and interpreted to update the ore body model and gold resource for the project. LCY said that the work continues in upgrading the current JORC inferred resource, which is expected to be announced in late December 2020.

The company said that the pit optimization work will be taken up after resource upgrade. Legacy Iron Ore said that the planning for future resource definition drilling is underway.

LCY said that the metallurgical test works are planned on samples received from core drilling that already commenced. The company said that the metallurgical studies for assessing optimum grind sizes and gold recovery percentages by gravity and heap leach are progressing well at ALS lab, Perth. The final report is expected Mid-December 2020.

The company reported that 1000 m HQ drilling is planned for Geotechnical studies. The company said that the geotechnical study is progressing well, with 8 HQ size diamond holes drilled. The company said that the geotechnical tests are currently being performed at E-precision lab, Perth with consultant SRK undertaking the geotechnical study.

LCY reported that Flora and Fauna survey has already commenced.

LCY said that it aims to obtain regulatory approvals for mining activities and has lodged the mining licence (ML) application. The Company said that it has successfully engaged with the stake holders of recently applied Mining Lease and entered into an agreement to ensure early grant of the lease.