en.Wedoany.com Reported - Legacy Minerals has signed a farm-in agreement with Aurelia Metals for the Cobar Project in New South Wales. Under the agreement, Aurelia Metals (ASX:AMI) can earn a 51% interest in the project by funding A$500,000 in exploration costs within two years. A second stage allows Aurelia to invest an additional A$1.5 million within five years from the start date, increasing its stake to 90%. Upon completion of this stage, Legacy Minerals (ASX:LGM) will retain exposure to the asset through a 10% joint venture interest or a net smelter royalty on future gold and base metal production.
Legacy stated that the agreement reflects its broader strategy of advancing non-core projects alongside high-caliber industry partners, while concentrating its own capital and technical capabilities on its flagship project—the Mt Carrington gold-silver project in northern New South Wales. Mt Carrington hosts 1.2 million ounces of gold equivalent resources and offers further exploration potential within a district-scale epithermal system. Aurelia already produces copper, lead, zinc, gold, and silver from multiple deposits at its Peak operations in the Cobar Basin, and brought its polymetallic Federation mine into production in 2024. Legacy's Cobar Project adjoins Peak and extends along strike to the CSA Mine—one of the largest and historically most significant copper mines in the region. The area hosts structures and geological settings favorable for Cobar-style polymetallic mineralization.
LGM CEO and Managing Director Christopher Byrne said securing Aurelia Metals as a partner for the Cobar Project is strategically significant for shareholders, as partnering with an established regional producer strengthens the development pathway for any future discoveries, while retaining upside for shareholders through ongoing joint venture participation or royalties. Byrne noted that the Cobar Project is located in one of Australia's most productive polymetallic basins, adjacent along strike to operating mines and existing processing infrastructure, and that Aurelia is one of the most experienced operators in the Cobar Basin. Its decision to exclusively fund up to A$2 million in exploration over five years provides shareholders with a meaningful discovery opportunity. He emphasized that Mt Carrington remains a priority, but the company will continue to deploy capital and management effort where it delivers the strongest outcomes for shareholders.
The Cobar Project comprises two contiguous exploration licenses covering multiple targets identified through soil geochemistry, airborne geophysics, and structural interpretation. The tenements are located near the Peak gold complex and extend along strike to the CSA Mine.
Mt Carrington is considered a district-scale epithermal gold-silver opportunity within a 393-square-kilometer granted exploration tenement. Past drilling has returned multiple significant precious and base metal intersections: one hole intersected 118 meters at 1.71 g/t gold, 6.9 g/t silver, 0.1% copper, and 1.12% zinc from 2 meters depth; another hole returned 18.9 meters at 5.8% copper from 58 meters depth and 10.1 meters at 7.26% copper from 88 meters depth; other notable intersections include 143 meters at 1.1 g/t gold and 3 g/t silver from surface, 37.1 meters at 422 g/t silver from surface, and 8 meters at 16.92 g/t gold, 17 g/t silver, 0.53% copper, 1.45% lead, and 6.89% zinc from 52 meters depth.
The company is currently preparing an 8,000-meter rapid drilling program targeting new silver-gold and copper discoveries at the Emu copper-gold and Mascotte silver-gold prospects at Mt Carrington. At Mascotte, eight diamond drill holes will test structural and geochemical extensions of mineralization beneath a 1.3-kilometer corridor of historical workings. A recent diamond hole at this prospect returned 40 meters at 1.0 g/t gold from 151 meters depth, while historical intersections include 18.3 meters at 237 g/t silver from 3 meters depth. At Emu, another eight holes will probe two distinct geophysical targets. Legacy expects the drilling campaign to last approximately three months, with additional resource expansion and follow-up drilling also planned.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
