Under the deal, Aurelia Metals (ASX:AMI) can earn a 51% interest by funding $500,000 in exploration over two years.
A second stage allows Aurelia to lift its stake to 90% by contributing a further $1.5m within five years of the commencement date.
Once this stage is wrapped up, Legacy Minerals (ASX:LGM) will retain exposure to the asset through a 10% JV interest or a net smelter royalty on future gold and base metals production.
Legacy said the deal reflected its broader strategy of advancing non-core projects with high-calibre industry partners, whilst directing its own capital and technical capability towards its flagship Mt Carrington gold-silver project in northern NSW.
Mt Carrington hosts a 1.2Moz AuEq resource with further exploration potential across an interpreted district-scale epithermal system.
Aurelia already produces copper, lead, zinc, gold and silver from multiple deposits at its Peak operation in the Cobar Basin. It also brought its polymetallic Federation mine to production in 2024.
Legacy’s Cobar project lies adjacent to Peak.
“Securing Aurelia Metals as our earn-in partner at the Cobar project is a strategically significant outcome for Legacy Minerals shareholders,” LGM CEO and managing director Christopher Byrne said.
“Partnering with an established regional producer strengthens the development pathway for any future discovery while preserving meaningful upside for shareholders, through either continued joint venture participation or a royalty position.
“While Mt Carrington remains our priority, we will continue to allocate capital and management effort where we believe it can deliver the strongest outcomes for shareholders.”
The Cobar project comprises two contiguous exploration licences covering multiple targets generated through soil geochemistry, airborne geophysics and structural interpretation.
It is believed to host a structural and geological setting favourable for Cobar-style polymetallic mineralisation.
The tenure lies near the Peak gold complex and along strike to the CSA mine – one of the region’s largest and most historically important copper operations.
Management believes Aurelia’s portfolio of operating mines, processing infrastructure and skilled local workforce could support a development pathway for any future discovery.
“The Cobar project sits in one of Australia’s most productive polymetallic basins, along strike from operating mines and existing processing infrastructure,” explained Byrne.
“Aurelia is one of the most established operators in the Cobar Basin, and its option to sole-fund up to A$2.0 million of exploration over five years provides a meaningful discovery opportunity for our shareholders.”
Mt Carrington is considered a district-scale, epithermal gold-silver opportunity within 393km2 of granted exploration tenements.
Past drilling returned an assortment of significant precious and base metals intercepts.
One hole served up 118m at 1.71g/t Au, 6.9g/t Ag, 0.1% Cu and 1.12% Zn from 2m and another hole intersected 18.9m at 5.8% Cu from 58m and 10.1m at 7.26% Cu from 88m.
Other standout strikes included 143m at 1.1g/t Au and 3g/t Ag from surface, 37.1m at 422g/t Ag from surface and 8m at 16.92g/t Au, 17g/t Ag, 0.53% Cu, 1.45% Pb and 6.89% Zn from 52m.
The company is now preparing for an 8000m drill blitz targeting new silver-gold and copper discoveries at Mr Carrington’s Emu copper-gold and Mascotte silver-gold prospects.
At Mascotte, eight diamond drillholes will test structural and geochemical extensions of mineralised zones beneath a 1.3km corridor of historical workings.
A recent diamond hole at the prospect returned 40m at 1.0g/t Au from 151m, adding to a historical hit of 18.3m at 237g/t Ag from 3m.
At Emu, another eight holes will probe two distinct geophysical targets.
Legacy expects the campaign to run for about three months, with additional resource expansion and follow-up drilling also planned.
