Legacy Minerals (ASX:LGM) has entered into a memorandum of understanding with Cobalt Blue (ASX:COB) to assess strategic options for cobalt and other products sourced from the NiCo Young Project in New South Wales.
The agreement holds a term of three years, which intends to help direct Legacy assess potential pathways towards commercialisation for the project, which it secured in May 2025.
Legacy CEO Christopher Byrne explains that Cobalt Blue, which owns the Broken Hill Cobalt Deposit and is currently developing the Kwinana Cobalt Refinery, holds an expertise in these types of ores which may be able to be refined in the future.
“The companies propose to evaluate the opportunities for commercialisation of nickel-cobalt from the NiCo Young deposit, which would align with Australia’s critical minerals strategy and the Commonwealth Government’s ‘A Future Made in Australia’ ambitions,” Byrne says.
Meanwhile, the company has entered early exploration stages across the project to review scandium, which was not included in the previous resource.
Sunrise Energy Metals’ (ASX:SRL) nearby Sunrise and Syerston deposits, also located along the Lachlan Ford Belt, host a global resource of 19,007 tonnes of scandium.
“In conjunction with a general exploration review, recent work by the exploration team has focused on the scandium potential of the deposit,” Byrne adds.
“This has resulted in the identification of a historical scandium resource on the deposit and limited historical testing and metallurgical evaluation of the project for its scandium project.”
Legacy will conduct a detailed literature review, before dedicating an assaying program for the commodity, with potential metallurgical leach testing as well as conducting a domaining study.
Nico Young currently hosts a JORC-compliant mineral resource of 167.8 million tonnes @ 0.59% nickel and 0.06% cobalt for a 0.6% nickel equivalent cut-off, hosting a contained 1 million tonnes of nickel and 100,000 tonnes of cobalt.
Legacy Minerals is a gold, copper, and base metals explorer focused in the New South Wales area.
Write to Maddison Elliott at Mining.com.au
Images: Legacy Minerals
