Legacy Minerals Holdings (ASX:LGM) has seen its share price jump more than 13% after reporting a new resource of 0.8 million ounces gold equivalent and 35Moz silver equivalent for its Drake epithermal gold-silver project in New South Wales.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
This was taken from an open pit mineral resource estimate of 0.65Moz Au, 24.3Moz Ag, 147,000 tonnes of zinc, 33,000t of lead, and 20,000t of copper.
The result, which represents significant growth in the resource base, was shaped around changing prices in commodities and precious metals. More extensive geological modelling which looked at the nature of polymetallic mineralisation across all project deposits has also played something of a role.
Given gold and silver are the most common metals found in the deposits, they have been deemed as the best metals for equivalent calculations, with a gold price of A$3,600 per ounce and a silver price of A$43/oz being used.
Legacy has derived its MRE from four deposits: A gold rich deposit at Mt Carrington of 14.5 Mt at 1.2g/t AuEq for 560,000oz AuEq, a silver rich deposit at the same – of 5.1Mt at 106g/t AgEq for 17Moz AgEq, the Red Rock deposit (which holds 8.61Mt at 0.84g/t AuEq for 232koz AuEq), and White Rock (6.62Mt at 92g/t AgEq for 18Moz AgEq).
The company now looks to build on this, noting the deposits are all open along strike and at depth, and have near-surface targets and high-grade drill hits at depth which are close to the resource base, but yet to be delineated.
More market news
Together: The U.S. has suspended aid to Ukraine. Will Europe step into the breach?
Meet GeoGeorge: The HotCopper poster so accurate he got hired as an analyst
CEO and managing director Christopher Byrne said all the parameters were in place for this update to the Drake resource. “With gold and silver prices at all-time highs, it’s a fantastic time to release a substantially increased mineral resource estimate (MRE) at our Drake Project,” he said.
“The updated MRE highlights the impressive mineral endowment of the large-scale system at the Drake Project. The new MRE has increased contained gold equivalent metal to 0.8Moz gold-equivalent and 35Moz silver-equivalent – reflecting open pit resources totalling 34Mt.”
LGM last sold at around 17cps, up 13% through Thursday’s lunchtime trade.
Join the discussion: See what HotCopper users are saying about Legacy Minerals Holding and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please clickhere.