Legacy Iron Ore (ASX:LCY) is looking to rapidly transition its Mount Celia Gold Mine to production on the back of an infrastructure-sharing agreement with Linden Gold Alliance.
Legacy, which has a $96 million market capitalisation, says the agreement has been made at Linden’s Second Fortune Gold Mine, south of Laverton in Western Australia, and will begin on 23 November 2023.
The agreement will cover an initial 20-month term to accommodate mine workers from Legacy’s Mount Celia Gold Mine, which is located only 10km south of Second Fortune.
Legacy notes the agreement will also provide it with access to the airstrip for its fly-in fly-out workforce and medical facilities for urgent and non-urgent procedures.
This announcement comes only 24 hours after Legacy Iron reported it had received final approvals from the WA Department of Mines, Industry, Regulation and Safety (DMIRS) to mine Mount Celia.
As announced yesterday, Legacy Iron now plans to mobilise its soon-to-be-appointed mining contractor to the site early this month, with surface mining from the Blue Peter pits to begin before the end of October.
Addressing the agreement, Legacy Iron Ore Chief Executive Officer (CEO) Rakesh Gupta says: “This collaborative partnership with Linden to share existing infrastructure represents a significant cost saving to our business and accelerates the transition of the Mount Celia Gold Mineto production.
“Legacy Iron looks forward to working with Linden and exploring other synergies to become a low-cost-per-ounce gold producer“
Legacy Iron looks forward to working with Linden and exploring other synergies to become a low-cost-per-ounce gold producer.”
Legacy Iron Ore is a multi-element explorer focused on its mineral projects in Western Australia, which are considered prospective for gold, lithium, nickel, rare earths, iron ore, and base metals.
The company’s Mount Celia deposits form part of its South Laverton Project, which is home to multiple prospective tenements along the Keith Kilkenny Tectonic Zone and the southern part of the Laverton Tectonic Zone.
Legacy Iron Ore had $10.237 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Legacy Iron Ore