Legacy Minerals Ltd (ASX:LGM) is teaming up with US-based artificial intelligence explorer Earth AI to fast track discovery across its Mullholland and Fontenoy battery metals projects.
While Legacy retains 100% ownership of the projects, Earth AI will outlay $4.5 million over two years and will only earn its 3% royalty if a significant discovery is made (qualifying intercept).
However, Earth AI does have the option to acquire either project for US$1 million and a 2% royalty, if LGM does not spend US$250,000 per annum from the second anniversary of the qualifying intercept or a resource is not defined.
Earth AI seems confident it can meet its targets.
The Fontenoy project is just 15 kilometres from Young in NSW and is a large copper and gold system with multiple wide gold and copper drill intercepts.
It is mineralised for +8 kilometres in length with numerous undrilled walk-up drill targets.
Significant drill intersects at Fontenoy from previous explorers include:
- 79 metres at 0.27% copper from 1.5 metres including 8.8 metres at 0.33 g/t gold;
- 26 metres at 0.44 g/t gold from surface including 6 metres at 1 g/t; and
- 14 metres at 0.73 g/t gold and 0.34% copper from 108 metres.
Mulholland is 45 kilometres from Bourke in NSW and within the emerging tin district northeast of Cobar.
It is only 500 metres southeast of Sky Metals Ltd’s growing tin-copper-zinc 3KEL prospect and less than 3 kilometres from Sky's tin-copper Doradilla Prospect.
Across the tenement are known skarns and untested geochemical and geophysical anomalies. Tin mineralisation is confirmed through drilling including two drill holes, 1,200 metres apart, that intersected:
- 6 metres at 0.21% tin from 99.75 metres and 2 metres at 0.17% tin from 117 metres.
Much of the previous nickel drilling was mineralised to end of hole with significant nickel intercepts including:
- 44 metres at 0.45% nickel from 42 metres including 27 metres at 0.55% nickel; and
- 54 metres at 0.40% nickel from 63 metres including 15 metres at 0.50% nickel.
Why Earth AI?
San Francisco-based Earth AI is an artificial intelligence exploration company that has a vertically integrated metals exploration approach to finding metal ore deposits required to build renewable energy infrastructure.
Earth AI is focused on finding new sources of critical metals to supply the needs for sustainable market transitions and owns and operates its own drill rig based out of Central NSW.
According to Legacy MD Christopher Byrne, using AI could increase discovery opportunities.
“This is a very exciting new phase in the Legacy Minerals exploration story. The technology metals industry is an ever-growing market and there is increasing recognition in the technology sector that exploration and discovery rates are failing to meet the demand for battery, technology and critical metals,” he said.
“Our exploration alliance with Earth AI puts Legacy Minerals at the forefront of the exploration industry, in utilising artificial intelligence and machine learning to increase discovery opportunities through a vertically integrated approach.
“The Fontenoy and Mulholland projects present significant copper-nickel-cobalt-tin and platinum group element (PGE) opportunities that will potentially help meet the critical and battery metals demand and provide returns for our shareholders.”
Earth AI plans to implement its artificial intelligence deposit targeting system to generate drill targets across Legacy’s tenements. Once identified, Earth AI will follow up with on-ground geophysical and geochemical work before drill testing.