Legacy Iron Ore Limited (ASX: LCY) announced that the recently completed resource estimation for the Kangaroo Bore and Blue Peter deposits of its Mt Celia project has resulted in an approximate 72% conversion of resources to JORC Indicated category resource.
The company reported a revised endowment of 179,700 ounces gold at 1.55 g/t at Mt Celia, with significant increase to the indicated category (72% indicated category). LCY said that Kangaroo Bore gold resources total was 135,600 ounces at 1.36 g/t (72% indicated category) while Blue Peter gold resources total was 44,100 ounces at 2.68 g/t (73% indicated category).
LCY noted that estimates only included model cells located above 150m below the natural surface.
Resource estimate by SRK
Legacy’s revised resource estimate at Mt Celia project was carried out by SRK Consulting in 2020. The previous Mineral Resource estimates for Kangaroo Bore and Blue Peter were also prepared by SRK in November 2017 and January 2018, respectively.
SRK consulting had used the data from the number of drilling programs conducted by LCY until mid-September 2020, aimed at increasing the geological confidence of the resource quality, in conjunction with the existing data to update the Mineral Resource estimates.
The company said that the database used for resource estimation contained over 540 reverse circulation (RC) and diamond drill (DD) holes. Of these drill holes, a total of 361 holes were located within the Kangaroo Bore model area and 165 holes were located in the Blue Peter model area.
Legacy said that SRK prepared geological models for the two deposits, with the lode boundary interpretation primarily based on geochemical data. A total of 16 separate lodes were delineated for Kangaroo Bore and 12 separate lodes were delineated for Blue Peter.
Significant increase to JORC indicated category
The company announced that SRK Consulting (Australasia) Pty Ltd has now prepared updates of the Mineral Resource estimates and models for the Kangaroo Bore and Blue Peter gold deposits.
LCY said that The Mineral Resource estimates were prepared and classified in accordance with the guidelines that accompany the JORC Code (2012).
The company said that the revised resource estimate carried out by SRK Consulting shows the total Mt Celia total resource endowment remains at 179,700 Oz but increases significantly to the indicated category, providing further confidence to the economic potential of the Mt Celia project.
This included Kangaroo Bore gold resources total 135,600 ounces at 1.36 g/t – 72% indicated category; and Blue Peter gold resources total 44,100 ounces at 2.68 g/t – 73% indicated category.
The resource estimation results for Kangaroo Bore are summarised below.
The resource estimation results for Blue Peter are summarised below.
The company said that the estimates only included model cells located above 260mRL, which is approximately 150m below the natural surface. Mineralisation is known to occur below these levels and was not included in this resource calculation.
LCY noted that the largest sources of uncertainty are considered to be related to the uncertainty in data quality, density, and mining depletions. The drilling is relatively closely spaced, and the likelihood of an alternative interpretation that would yield significantly different grade and tonnage estimates is considered to be low.
The company noted that the resource quantities should be considered as global estimates only. LCY said that the accompanying model is considered suitable to support mine planning studies, but is not considered suitable for production planning, or studies that place significant reliance upon the local estimates.
* Image source: Legacy Iron Ore Limited