Legacy Minerals Uncovers Scandium Potential at NiCo Young Project
Legacy Minerals Holdings Ltd (ASX:LGM) has revealed new strategic developments at its NiCo Young Project, including the discovery of untapped scandium potential and a promising Memorandum of Understanding with Cobalt Blue Holdings (ASX:COB).
Scandium Discovery Adds New Dimension to One of Australia's Largest Nickel-Cobalt Deposits
In a significant development for Legacy Minerals, a review of historical data at the NiCo Young Project has uncovered a previously unreported JORC 2004 scandium resource established in 2011. This discovery adds a valuable new dimension to what is already one of Australia's largest nickel-cobalt deposits.
The NiCo Young Project boasts an impressive Mineral Resource of 167.8 Mt @ 0.59% Ni and 0.06% Co at a 0.6% NiEq cut-off, representing contained metal of approximately 1 million tonnes of nickel and 100,000 tonnes of cobalt. This includes a higher-grade zone of 42.5 Mt @ 0.80% Ni and 0.09% Co using a 1.0% nickel equivalent cut-off.
The company's next steps include:
- Conducting a detailed literature review
- Dedicated assaying for scandium in the deposit
- Potential metallurgical leach tests
- A scandium domaining study to identify discrete, near-surface resources
The addition of scandium potential could significantly enhance the project's value, particularly given the success of similar deposits in the Lachlan Fold Belt such as Sunrise Energy Metals' Sunrise and Syerston Deposits, which host a global resource of 19,007 tonnes of scandium.
Strategic Partnership with Cobalt Blue Opens Commercialisation Pathways
In a move that could accelerate development pathways, Legacy Minerals has entered into a non-binding, three-year Memorandum of Understanding with Cobalt Blue Holdings. This strategic partnership will explore commercialisation options for the cobalt and other products from the NiCo Young Project.
Cobalt Blue brings valuable expertise to the table as the owner of the Broken Hill Cobalt Project and developer of the Kwinana Cobalt Refinery in Western Australia. The refinery is being developed as a joint venture between Cobalt Blue (70%) and Iwatani Australia Pty Limited (30%).
CEO Christopher Byrne commented: "The free pegging of the NiCo Young Project, one of the largest Nickel and Cobalt deposits in NSW, exposes Legacy Minerals shareholders to a nationally significant deposit. This is a significant step for the Nico Young Project towards assessing potential pathways towards commercialisation. Cobalt Blue not only possesses expertise in these types of ores but also has strategically positioned itself to potentially refine this type of ore in the future."
Understanding Scandium: A Critical Metal for Advanced Manufacturing
Scandium is classified as a critical mineral due to its importance in advanced manufacturing and limited global supply. When alloyed with aluminium, scandium creates materials that are stronger, more corrosion-resistant, and more heat-tolerant than traditional aluminium alloys.
These scandium-aluminium alloys are particularly valuable in:
- Aerospace applications: Components manufactured with scandium alloys can reduce aircraft weight and improve fuel efficiency
- High-performance sporting equipment: Providing superior strength-to-weight ratios
- Solid oxide fuel cells: Scandium improves electrical conductivity and durability in these energy systems
The global scandium market is relatively small but growing rapidly as new applications emerge. Australia is positioned to become a significant producer, with several projects in the Lachlan Fold Belt containing some of the world's most promising scandium resources.
What Makes Scandium Valuable?
Scandium is rarely found in concentrated deposits and is typically produced as a byproduct of other metal processing operations. This makes scandium-rich laterite deposits like those in the Lachlan Fold Belt particularly valuable.
When added to aluminium at concentrations as low as 0.1-0.5%, scandium can:
- Increase strength by up to 150%
- Improve corrosion resistance
- Enhance weldability without loss of strength
- Maintain performance at higher temperatures
These properties make scandium-containing alloys increasingly important for advanced manufacturing sectors where weight reduction and performance are critical factors.
Strategic Acquisition Enhances Legacy Minerals' Portfolio
Legacy Minerals secured the NiCo Young Project in May 2025 following the relinquishment of exploration tenure by the Administrators of Jervois. This strategic acquisition came with no associated liabilities, encumbrances, or private royalties.
The NiCo Young deposit is among the four largest nickel-cobalt deposits in NSW, alongside Sunrise (Sunrise Energy Metals), Platina/Burra (Rio Tinto), and Melrose (Rimfire).
This addition complements Legacy Minerals' diverse portfolio of gold, copper, and base metal projects across NSW, which includes:
- The Au-Ag Bauloora Newmont JV
- The Cu-Au Rockley project
- The Cu-Au Thomson Rio Tinto Option
- Multiple additional exploration projects at various stages of development
Why Investors Should Follow Legacy Minerals
The NiCo Young development represents a significant opportunity for investors interested in critical minerals exposure:
-
Scale and Quality: With nearly 1 million tonnes of contained nickel and 100,000 tonnes of cobalt, NiCo Young ranks as one of Australia's largest nickel-cobalt resources.
-
Critical Mineral Exposure: The addition of scandium potential provides exposure to one of the world's most sought-after critical minerals.
-
Strategic Partnerships: The MoU with Cobalt Blue creates a potential pathway to commercialisation through a partner with refining capabilities.
-
Favourable Acquisition Terms: The project was secured through free pegging with no associated liabilities or encumbrances.
-
Alignment with Government Priorities: Development of the project aligns with Australia's Critical Minerals Strategy and the Commonwealth Government's "A Future Made in Australia" initiative.
Resource Breakdown at NiCo Young
The NiCo Young Project consists of two main prospects, Ardnaree and Thuddungra. The current inferred mineral resource estimates at each site demonstrate the scale of the opportunity:
At 0.6% Ni equivalent cut-off:
- Ardnaree: 53.6 Mt @ 0.66% Ni and 0.05% Co (355,600t Ni, 24,600t Co)
- Thuddungra: 114.3 Mt @ 0.56% Ni and 0.06% Co (641,100t Ni, 72,000t Co)
- Total: 167.8 Mt @ 0.59% Ni and 0.06% Co (996,700t Ni, 96,600t Co)
Higher grade mineralisation at 1.0% Ni equivalent cut-off:
- Ardnaree: 14.5 Mt @ 0.88% Ni and 0.07% Co (127,600t Ni, 10,300t Co)
- Thuddungra: 27.9 Mt @ 0.76% Ni and 0.10% Co (211,200t Ni, 27,700t Co)
- Total: 42.5 Mt @ 0.80% Ni and 0.09% Co (338,800t Ni, 38,000t Co)
Legacy Minerals is positioning itself as a significant player in Australia's critical minerals sector, with NiCo Young representing a cornerstone asset in a diverse portfolio of exploration and development projects across NSW.
Ready to Invest in Australia's Critical Minerals Future?
Discover how Legacy Minerals is unlocking value from one of Australia's largest nickel-cobalt resources with newly discovered scandium potential and strategic partnerships. For comprehensive investor information about the NiCo Young Project and Legacy Minerals' diverse portfolio of critical mineral assets, visit the company's website today and position yourself for potential growth in Australia's emerging critical minerals sector.
