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Legacy Iron Ore gold drilling, modelling highlights potential resource increase at Mt Celia

Legacy Iron Ore gold drilling, modelling highlights potential resource increase at Mt Celia

Legacy Iron Ore (ASX: LCY) has received results from a drilling program and modelling and pit optimisation study at the Mt Celia Gold Project, with a revised JORC Resource to begin soon.

The Mt Celia Project lies within the Laverton Tectonic Zone in Western Australia, some 40 kilometres south of AngloGold Ashanti’s (NYSE: AU, JSE: ANG) 12 million ounce Sunrise Dam gold mine. 

A 1,200 metre reverse circulation drilling program at the Blue Peter prospect returned highlights of:

- 6 metres at 4.22 grams per tonne (g/t) gold from 142 metres; and
- 3 metres at 4.72g/t gold from 201 metres.

This program was designed to test below previous drilling intercepts, where results included:

- 3 metres at 21.71g/t gold from 28 metres, including 1 metre at 62.75g/t gold; and
- 4 metres at 12.11g/t gold from 56 metres, including 2 metres at 19.67g/t gold.

Blue Peter hosts an Inferred JORC Resource of 239,232 tonnes at 3.97 grams per tonne (g/t) for 30,554 ounces of contained gold, based on 1g/t gold cut off. A revised resource calculation for Blue Peter will be made to include the latest drilling results.

Pit optimisation

Legacy Iron Ore has also carried out a modelling and pit optimisation study at the Kangaroo Bore prospect within Mt Celia, to provide an initial commercial assessment of the resource and guide future drilling.

Several pit shells were generated for different metal prices and pit slope angles, using industry standards for mining and processing costs and other parameters.

The base case pit optimisation model indicated that a maximum of 400,000 tonnes of ore could be extracted with a 3.7 stripping ratio and an average grade of 1.54g/t gold at a 45 degree pit slope angle.

Optimising at a 65 degree pit slope angle almost doubled profit to $15 million based on the same operational parameters.

A number of areas at Kangaroo Bore were identified as having potential to increase the mineable resource with deeper drilling.

Kangaroo Bore hosts an Inferred JORC Resource of 1.04 million tonnes at 1.4g/t gold for 46,000 ounces of contained gold, based on a 0.7g/t cut off.

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