Legacy Iron Ore Achieves Milestone With First Gold Ore Sale From Mount Celia

Legacy Iron Ore Ltd (ASX: LCY) has reached a pivotal moment in its trajectory by completing the sale of gold ore from its Mount Celia Gold Operations, marking a significant stride forward in its journey.

The initial delivery, totaling about 21,000 tonnes, is part of an ore sale agreement for the Mount Celia Gold Project, aligning with the company’s previously outlined projections.

This transaction will see the ore undergo processing under an Ore Purchase Agreement with Paddington Gold Pty Ltd, a subsidiary of Norton Goldfields Ltd. The timing couldn’t be more opportune, with gold prices soaring to record highs, currently exceeding A$3,200 per ounce.

Situated within the Laverton Tectonic Zone, boasting resources of around 30 million ounces, the Mount Celia resource stands at 6.97 million tonnes at 1.39g/t gold, translating to about 312,600 ounces.

Capital raising

Legacy Iron Ore’s recent capital raising of $19.6 million at $0.015 per share through an entitlement issue further underscores the company’s strategic positioning and investor confidence in its endeavours.

The ore sale is a part of Legacy’s commitment to transitioning into gold production and revenue generation.

CEO Rakesh Gupta expressed his satisfaction, stating,

“This first ore sale marks a significant step in the company’s history as we move towards gold production and revenue generation. In November 2023, we advised the market that we would have our first gold in Q1 2024, and we are delivering on that promise.”

The revenue generated from these sales will be pivotal in fueling ongoing expansion and exploration activities at the Mount Celia deposits.

Gupta emphasized the potential for further growth through mineral resource drilling and early-stage exploration at the Yilgangi deposit and the Patricia North prospect, highlighting the company’s commitment to maximising its mineral resources.

Legacy Iron Ore’s strategic alliances further enhance its capabilities and reach.

Backed by India’s NMDC Ltd, a cornerstone investor providing access to global capital markets, Legacy is well-positioned for sustained growth and success in the competitive mining landscape.

Hancock Prospecting

Beyond its gold operations, Legacy holds interests in diverse commodities. The company’s venture into the lithium and iron ore sector through the Mt Bevan Project underscores its proactive approach to diversification and strategic partnerships.

The recent joint venture earn-in agreement with Hancock Prospecting, securing an initial 30% interest with the potential for further expansion, demonstrates the confidence and commitment of industry giants in Legacy’s projects.

The Mt Bevan Project, located 100 kilometres west of Leonora in the Yilgarn region of Western Australia, boasts a substantial inferred magnetite resource of 1.17 billion tonnes at 34.9% iron, positioning it as a significant player in the sector.

Legacy’s strategic positioning, coupled with its ongoing commitment to innovation, exploration, and sustainable growth, sets the stage for continued success and value creation for its stakeholders in the dynamic mining industry landscape.

 

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