Legacy Minerals Flotation Processing Technology Transforms Mt Carrington Project

Legacy Minerals Advances Mt Carrington with Expanded Scoping Study Following Positive Metallurgical Results

Legacy Minerals Holdings Limited (ASX: LGM) has announced significant progress at its Mt Carrington Gold-Silver Project in New South Wales, with the completion of a positive Metallurgical Bridging Study and the commencement of an expanded Stage 2 Scoping Study. The company has engaged global engineering leader Ausenco to conduct a comprehensive evaluation of the entire 1.2 million ounce gold equivalent resource, representing a substantial expansion from the Stage 1 study that only examined 0.2 million ounces. Furthermore, the breakthrough in Legacy Minerals flotation processing technology has opened new pathways for maximising value from the project's polymetallic deposits.

The developments build on the robust economics demonstrated in the Stage 1 Scoping Study, which delivered an impressive NPV8 of $404 million and an all-in-sustaining cost of $1,709/oz with low capital expenditure requirements. Most significantly, the Metallurgical Bridging Study has identified processing methods that can unlock value from the project's substantial silver-dominant deposits, addressing a key challenge that has historically limited the project's potential.

Breakthrough in Processing Technology Unlocks Silver Value

The Metallurgical Bridging Study represents a crucial technical milestone for Mt Carrington, identifying flotation processing as the optimal method to maximise metallurgical recovery from both precious metals with reasonable payability. According to the study, this approach represents a significant improvement over previous operations at the site, which focused on carbon-in-leach processing methods that failed to fully capitalise on the silver content.

Key findings from the study include:

• Flotation circuit superiority: The study indicates that utilising flotation to produce a precious metal concentrate is expected to realise the highest value from both gold-dominant and silver-dominant deposits

• Processing flexibility: A flotation circuit flowsheet allows for optionality to add additional flotation circuits to liberate elements such as copper and zinc

• Revenue optimisation: The study confirms that maximising metallurgical recovery of both precious metals with reasonable payability is the key enabler to unlock revenue from silver-dominant deposits

The study particularly highlights opportunities in the silver-dominant Lady Hampden and White Rock deposits, with a flowsheet designed to efficiently recover the high silver content that has historically been underutilised. Consequently, the Legacy Minerals flotation processing technology development provides a clear pathway for unlocking previously inaccessible value.

Managing Director Commentary

Legacy Minerals is pleased to report that the Bridging Study completed by Ausenco has delivered a clear and encouraging forward pathway for the Mt Carrington Project. The study provides the clearest technical guidance to date on how the gold-silver (zinc-copper) system should be developed and confirms genuine potential for growth and value creation, said Christopher Byrne, CEO & Managing Director.

Understanding Flotation Processing: A Game-Changer for Polymetallic Deposits

Flotation processing is a mineral separation technique that uses differences in surface properties of minerals to separate valuable metals from waste rock. In the context of Mt Carrington's polymetallic deposits, flotation offers several advantages over traditional processing methods.

The process works by:

• Adding chemical reagents to create bubbles that selectively attach to valuable minerals
• Separating metals based on their surface chemistry properties
• Producing concentrates containing multiple valuable elements

Why flotation matters for Mt Carrington:

Higher recovery rates: Flotation can achieve superior recovery of both gold and silver compared to traditional leaching methods, particularly important for deposits containing significant silver content.

Processing flexibility: The process can be adjusted to handle different ore types and metal compositions within the same operation, allowing the project to process both gold-dominant and silver-dominant ores effectively.

Future optionality: Additional flotation circuits can be added later to recover copper and zinc, providing growth opportunities as the project develops.

This processing breakthrough is particularly significant for Mt Carrington because the project contains substantial silver resources alongside gold (24.3 million ounces silver versus 653,000 ounces gold), making it essential to have processing methods that can efficiently extract both metals to maximise revenue potential. Moreover, the implementation of Legacy Minerals flotation processing technology ensures optimal recovery rates across all metal components.

Substantial Infrastructure Advantage Reduces Development Risk

Mt Carrington benefits from approximately $40 million in sunk capital from previous mining and exploration companies, providing a significant head start for development. According to Legacy Minerals, this existing infrastructure substantially reduces the capital requirements and development timeline compared to greenfield projects.

Existing infrastructure includes:

This infrastructure advantage was demonstrated in the Stage 1 Scoping Study's capital expenditure estimate of approximately $47 million, which is reportedly significantly lower than typical mining projects of similar scale due to the existing facilities. In addition, the compatibility of this infrastructure with Legacy Minerals flotation processing technology further enhances the project's development economics.

Stage 2 Study Expansion: Evaluating the Full Resource Potential

The expanded Stage 2 Scoping Study represents a comprehensive evaluation of Mt Carrington's full potential, moving beyond the limited scope of the initial assessment. Ausenco will conduct a strategic review covering the entire 1.2 million ounce gold equivalent Mineral Resource Estimate, compared to just 0.2 million ounces evaluated in Stage 1.

Study scope and timeline:

• Completion target: First quarter 2026
• Resource coverage: Full 1.2Moz AuEq evaluation versus 16% coverage in Stage 1
• Processing approach: Integration of flotation processing for polymetallic recovery
• Mining optimisation: Preliminary pit shell optimisation and conceptual open-pit design
• Financial modelling: Standalone financial model incorporating both mining and processing

According to the announcement, the study's main objectives include integrating mining and processing into a cohesive framework, identifying the most profitable configuration for the processing plant and product strategy, and defining steps necessary to advance the project to detailed engineering phases. Furthermore, the incorporation of Legacy Minerals flotation processing technology into the expanded study scope ensures comprehensive evaluation of all metallurgical opportunities.

Robust Stage 1 Economics Provide Strong Foundation

The Stage 1 Scoping Study delivered compelling financial metrics based on a conservative $5,000/oz gold price, demonstrating the project's economic viability even with limited resource utilisation:

Production parameters reported in the study:

• Total gold production: 172,600oz Au over 5.5-year mine life
• Average annual production: ~31,400oz with 83% gold recovery
• Processing capacity: 1MT processing plant handling ~5.06Mt at ~1.29g/t Au

These metrics represent only the gold-focused portion of the resource, highlighting the significant upside potential when the full polymetallic resource is evaluated in the Stage 2 study. However, the integration of improved processing methods could substantially enhance these already impressive figures.

What Are the Key Economic Drivers for Mt Carrington?

The Stage 1 study identified several critical factors that contribute to the project's exceptional economics. However, the most significant driver is the project's ability to generate substantial free cash flow through low-cost production methods combined with existing infrastructure.

Primary economic drivers include:

• Low capital intensity: Existing infrastructure reduces initial investment requirements
• High-grade ore zones: Concentrated mineralisation reduces processing costs per ounce
• Short payback period: Rapid capital recovery reduces investment risk
• Scalability potential: Additional resources could extend mine life and production capacity

Dual-Track Strategy: Development and Discovery

Legacy Minerals operates a dual-track approach to value creation at Mt Carrington, combining project development with ongoing exploration for resource expansion. Current drilling programmes are systematically testing greenfield targets with focus on gold, silver, and copper mineralisation within the Drake Caldera.

Active programmes include:

1. Discovery drilling: Testing new epithermal-porphyry mineralisation at Battery, Emu, and Mascotte prospects
2. Resource extension assessment: Evaluating depth and strike extensions of high-grade zones (government approvals pending)
3. Resource confidence enhancement: Confirming and infilling historical drill results within existing Inferred Resources
4. Study advancement: Stage 2 Scoping Study assessing the full 1.2Moz AuEq resource

This strategy provides multiple pathways for value creation, with development studies progressing alongside exploration activities that could further expand the resource base. For instance, successful exploration results could significantly increase the resource available for processing using the optimised flotation methods.

Investment Thesis: Positioning for Significant Value Creation

Legacy Minerals presents a compelling investment opportunity through Mt Carrington's combination of proven resources, existing infrastructure, and technical breakthroughs in processing optimisation. The company has successfully addressed the key technical challenge of maximising recovery from silver-dominant deposits, whilst the substantial existing infrastructure significantly reduces development risk and capital requirements.

Key investment highlights:

• Resource scale: 1.2 million ounce gold equivalent resource with significant silver content (24.3Moz Ag)
• Processing breakthrough: Flotation technology aims to unlock previously underutilised silver value
• Infrastructure advantage: ~$40 million in existing infrastructure reduces development risk
• Financial strength: Stage 1 study demonstrated NPV8 of $388 million with 141% IRR using only 16% of resources
• Expansion potential: Stage 2 study evaluating full resource with polymetallic processing approach

The Metallurgical Bridging Study has provided what the company describes as the clearest technical guidance to date on optimal development pathways, whilst the expanded Stage 2 study positions the company to potentially unlock the full value of its substantial resource base. Consequently, the successful implementation of Legacy Minerals flotation processing technology could transform the project's value proposition significantly.

How Does Mt Carrington Compare to Similar Projects?

Mt Carrington's combination of existing infrastructure, proven resources, and optimised processing methods positions it favourably against comparable development projects in the Australian precious metals sector.

Competitive advantages include:

• Reduced development timeline: Existing infrastructure accelerates project development
• Lower capital requirements: Sunk capital reduces initial investment needs
• Processing optimisation: Advanced flotation methods maximise recovery rates
• Polymetallic upside: Multiple revenue streams from gold, silver, copper, and zinc

Why Investors Should Monitor Legacy Minerals

Legacy Minerals has systematically de-risked the Mt Carrington project through technical studies, infrastructure advantages, and processing optimisation, positioning itself for potential value creation as it advances toward development. The company's dual-track strategy of development and discovery provides multiple catalysts for value appreciation, whilst the substantial existing infrastructure offers a competitive advantage in terms of reduced capital requirements and development timeline.

Key catalysts for 2025-2026:

• Q1 2026: Completion of expanded Stage 2 Scoping Study results
• Ongoing: Discovery drilling results from greenfield targets
• Pending approvals: Resource extension drilling programmes
• Development pathway: Advancement to detailed engineering studies

The combination of proven resources, existing infrastructure, technical optimisation, and multiple value creation pathways positions Legacy Minerals as a noteworthy development story for investors seeking exposure to precious metals development with reduced risk profile and significant upside potential. Furthermore, the successful development of Legacy Minerals flotation processing technology provides a template for optimising similar polymetallic deposits across the company's portfolio and the broader industry.

Ready to Explore Legacy Minerals' Development Opportunity?

With Mt Carrington's breakthrough flotation processing technology now validated and the expanded Stage 2 Scoping Study underway, Legacy Minerals is positioned to unlock the full potential of its 1.2 million ounce gold equivalent resource. The combination of existing infrastructure worth approximately $40 million, robust Stage 1 economics delivering an NPV8 of $388 million, and the technical pathway to maximise silver recovery presents a compelling development story. To discover more about Legacy Minerals' strategic positioning and the Mt Carrington project's advancement towards production, visit www.legacyminerals.com.au for comprehensive company information and project updates.