Legacy Minerals (ASX:LGM) has amended its Stage 1 Scoping Study for the Drake Gold-Silver Project in NSW, following a previous release on April 11, 2025. The updated study addresses JORC Code and Listing Rules non-compliance related to the inclusion of a stockpile. The company advises investors not to base investment decisions on the earlier release or historical pre-feasibility studies.
The amended study excludes the non-compliant stockpile, impacting financial results. Key updates include clarifying the scope of the Stage 1 study and providing the total Mineral Resource Estimate. Despite the exclusion, the updated study demonstrates robust economics with a pre-tax NPV of A$290.4 million at an 8% discount rate and an IRR of 112%, based on a gold price of A$4,250/oz. Free cash flow is estimated at A$314.1 million. At a gold price of A$5,000/oz, the pre-tax NPV increases to A$388 million, with an IRR of 141%.
Key parameters include a payback period of approximately 16 months, average annual gold production of 31,400oz, and an all-in sustaining cost of A$1,726/oz. The mine design is based on open-pit mining methods with a 1MT processing plant. Existing infrastructure, including haul roads, water supply, and a tailings dam, contributes to a lower CAPEX of A$47M.
The Stage 1 Scoping Study evaluates only 209.5koz of the Mt Carrington Group, while a potential Stage 2 Study will assess the total 650koz Au and 24.3Moz Ag defined in the updated 2025 Mineral Resource Estimate. The company plans to continue exploration activities and resource growth opportunities.
Legacy Minerals CEO Christopher Byrne highlighted the significant outcome for shareholders, stating the study confirms the outstanding opportunity of the Drake Project. He emphasized the project’s potential to deliver robust margins and strong free cash flows, with further upside through future resource growth and discovery. The company is also awaiting drilling assay results from six holes at Mt Carrington and the results of an airborne mobile-magnetotelluric geophysical survey. A$46 million funding will likely be required.
