Legacy Minerals Ltd (ASX:LGM) shares have been as much as 53% higher to $0.245, a new record high, after diamond drilling intersected a significant new discovery at the Bauloora Epithermal Gold Project in New South Wales.
Drill hole MM008 intercepted 16 metres (estimated true width ~12 metres) of low sulphidation epithermal style veins parallel to the main Mee Mar Prospect.
This is the largest intercept to date across the Bauloora Project.
Hole MM008 and MM001 show low sulphidation epithermal textured veins (chalcedony-quartz-carbonate) and breccia (galena-sphalerite-hematite). Quartz and chalcedony are white to dark grey and rarely purple in colour, adularia is orange to salmon pink, hematite is red, sphalerite may be white, light green to yellow and galena is silver to grey in colour.
Legacy CEO and managing director Christopher Byrne said: “The Legacy Minerals team is pleased to confirm a remarkable discovery at the Bauloora Epithermal Gold Project of low sulphidation epithermal veins and breccia across an extensive strike of the Mee Mar Prospect vein trend.
“This project's scale is demonstrated by the fact that every diamond drill hole testing the strike of the Mee Mar vein intercepted epithermal veins and breccia – delivering a continuous strike of 1,500 metres which remains open to the north, south and at depth.”
Mee Mar Prospect showing location of completed and planned phase one diamond drill holes over soil sample results, testing low sulphidation epithermal veins bearing gold-silver and anomalous pathfinder elements.
At the Mee Mar Prospect, eight diamond drill holes have been completed testing the large, two-kilometre-long gold-silver bearing low sulphidation epithermal Mee Mar Vein.
The diamond drill holes have confirmed low sulphidation epithermal veins, down dip from gold, silver and pathfinder rock chip and soil geochemistry anomalism, mapped veins and are broadly coincident with north striking magnetic lows and resistivity highs.
The ongoing drill program is expected to be completed within the next two weeks, after testing coincident resistivity highs with high-order gold-silver-antimony soil anomalies.
Eight holes have been completed for 1,267.7 metres, with two holes remaining for a total of 10 holes expected to be completed by the beginning of March.
“We are very encouraged by what we have seen in the maiden diamond drilling program into this exciting Mee Mar Prospect gold-silver vein target,” said Byrne.
“While alteration, veins and breccia do not directly translate to gold-silver grade, the presence of the broad down-hole width intervals of low sulphidation epithermal textured quartz-chalcedony-adularia-hematite veins and cockade breccia as well as extensive lead-zinc sulphides is a very exciting outcome.”
Drill core photos.
In light of the widths and significant mineralisation observed to date, the drilling strategy is currently under review and will be reassessed upon receipt of assays, before additional drill holes are planned that will test the highest-grade zones.
Core processing and logging are in progress and samples will be submitted for assay upon completion of the drill campaign with results expected in April.
“Potential to be very large gold-silver epithermal system”
Byrne added: “The Bauloora Project has the potential to be a very large gold-silver epithermal system and presents a great opportunity to deliver shareholder value through discovery.
“The newly discovered zone at MM008 demonstrates this growth potential with significant anomalous trends and targets of the project that remain completely untested.
“With two holes remaining in the campaign, we look forward to keeping investors updated and providing assay results in the months ahead.”