Legacy Minerals welcomes Glenlogan JV copper-gold drilling

The project sits in the mineral-rich Lachlan Fold Belt of NSW, where porphyry deposits can turn into massive low-opex mining operations.

Glenlogan is less than 55km from the giant Cadia Valley porphyry complex of Newmont (~50Moz Au, 10Mt Cu) and presents an opportunity to discover a major deposit in a region known for hosting Tier 1 porphyry copper-gold systems.

Last explored by Rio Tinto (ASX:RIO) in 1996, Glenlogan was not drill tested and historical data from that period shows the potential of a buried, Cadia-style, copper-gold porphyry target that may be amenable to bulk mining techniques.

Now, S2 Resources (ASX:S2R), led by Mark Bennett who oversaw Sirius Resources from its inception to its $1.8b merger with Independence Group (ASX:IGO), is drilling a 600-800m diamond hole.

Legacy Minerals (ASX:LGM) welcomes this progress, particularly since  S2 is supported by some of the mining industry’s pre-eminent technical and investment experts, including Mark Creasy, and has the expertise and experience to secure the funding and resources required to advance quality mineral projects from discovery to production.

S2 has the right to earn up to an 80% interest in the project from LGM, funding $6m for exploration over a five-year period.

At the decision to progress to mining, LGM can leverage an option of contributing at its 30% interest or convert to a 20% loan-carried interest to be repaid through production revenue.

This provides the company with a clear pathway to the development of Glenlogan, with the project carried through to commercial production without the need to raise capital.

In the meantime, LGM has wrapped up its first drilling campaign at the Thomson project in far northwest NSW and is ramping up gold, platinum and palladium exploration, including drilling, across its Fontenoy and Hilltops Gold joint venture projects – also in NSW.

The company recently entered an earn-in JV with Hilltops Gold covering the Harden gold project in the same region as Fontenoy. LGM will hold a 5% stake in the privately owned company which plans to establish a gold processing hub in central NSW.

Plus, Hilltops also holds the Kinzan gold project where drilling is underway, providing LGM with exposure to additional discovery and near-term gold development opportunities.