Legacy Minerals Drills McMahons Reef as Thomson Returns to Full Ownership

Legacy Minerals Pulls Double Duty: Drilling Kicks Off at Harden While Thomson Reverts to 100% Ownership

Legacy Minerals Holdings (ASX: LGM) has announced two significant developments in a single release — the commencement of a funded drilling program at the McMahons Reef Prospect within its Harden Gold Project, and the return of 100% ownership of the Thomson Project following Rio Tinto Exploration's decision not to proceed with its earn-in option. Together, Legacy Minerals drilling at McMahons Reef and Thomson project returns to 100% ownership reshape the near-term exploration narrative for the company and open multiple value pathways for investors to watch.

Drills Turn at McMahons Reef — and LGM Isn't Footing the Bill

The first holes of an 885-metre, eight-drill-hole program are now underway at the McMahons Reef Prospect in New South Wales, with the program entirely funded by joint venture partner Hill Tops Gold (HTG) under an existing earn-in agreement. That distinction matters — Legacy Minerals carries no exploration expenditure burden here, yet retains meaningful project exposure and a pathway to retain a 20% participating interest upon completion of HTG's full earn-in.

The McMahons Reef Prospect sits approximately 8km south of the historical Harden Gold Mine and is anchored by a series of historical workings developed on high-grade quartz reef structures. The mineralised trend stretches roughly 700 metres in strike length and remains open both along strike and at depth — key characteristics that make it an attractive drill target under modern methods.

Historical production from the broader area was notably high-grade:

These are not trivial numbers. A grade of 44 g/t Au from historical production speaks to a genuinely high-grade gold system — the kind of geological setting that warrants follow-up drilling despite limited modern exploration work to date.

The current program is designed precisely to test whether these historical high-grade zones continue at depth and whether the broader McMahons Reef trend hosts additional mineralisation beyond what historical drills were able to reach. First assay results are expected in Q3 2026, with the program anticipated to complete within approximately six weeks from commencement.

CEO & Managing Director Christopher Byrne commented:
"McMahons Reef hosts a high-grade gold system, with historical drilling returning intercepts of 3.6m at 21.7g/t Au from 115m. The system has seen limited modern exploration and remains open along strike and at depth, presenting a compelling opportunity for discovery in a region with a strong history of high-grade gold production."

Understanding the JV Structure: How LGM Wins Even Without Spending

The earn-in arrangement with Hill Tops Gold deserves a closer look, because it's structured in a way that creates multiple value levers for Legacy Minerals shareholders without direct cash outlay.

How does the Harden JV work?

1. Legacy Minerals holds 95% of the Harden Gold Project (EL9657)
2. HTG can earn up to an 80% interest by sole-funding agreed staged exploration expenditure
3. At completion of the full earn-in, Legacy Minerals retains a 20% carried/participating interest
4. Legacy Minerals also holds a 5% equity stake in Hill Tops Gold itself, adding a second layer of exposure
5. HTG is targeting an ASX listing in 2026, which could provide a future liquidity pathway for LGM's equity holding

This structure effectively means Legacy Minerals is getting free exploration carried over its project while simultaneously holding a stake in the company doing the work. Furthermore, if HTG lists on the ASX as planned, that 5% equity interest could crystallise into a tradeable, marketable asset — providing upside that goes beyond the Harden Project itself.

HTG's broader portfolio also includes the Kinzan Gold Project near Grenfell, which is currently being studied by researchers from the Centre for Ore Deposit and Earth Sciences (CODES) at the University of Tasmania. HTG's ambition to define a high-grade gold resource across Kinzan, Harden, and McMahons Reef ahead of listing gives additional context to the seriousness of the current drilling program.

What Is "High-Grade Orogenic Gold"? A Quick Explainer for Investors

One term worth understanding in the context of McMahons Reef is orogenic gold mineralisation — the style of deposit Legacy Minerals is targeting here.

Orogenic gold refers to gold deposits formed during periods of mountain-building (orogeny), typically hosted in quartz veins that cut through deformed rocks. These systems are often structurally controlled, meaning gold concentrates along faults and shear zones rather than being evenly distributed through rock.

Why does this matter to investors?

• Orogenic systems are often very high grade where mineralisation is present — as evidenced by the historical 44 g/t Au production grade at the broader Harden area
• They can be structurally complex, meaning that identifying the right drill angles and targets requires good geological interpretation
• These systems frequently remain open at depth, which is exactly the exploration case being made at McMahons Reef

The limited modern exploration at McMahons Reef is actually a feature, not a bug — it means current methods including surface mapping, geochemical sampling, and modern drilling techniques are being applied for the first time to a system with demonstrated high-grade historical production.

Thomson Project: Rio Tinto Exits, Legacy Minerals Reclaims 100%

Simultaneously with the Harden drilling news, Legacy Minerals has confirmed that Rio Tinto Exploration (RTX) has elected not to exercise its option to enter into a formal earn-in at the Thomson Project. Under the original agreement, RTX had the right — but not the obligation — to earn up to an 80% interest by sole-funding staged exploration expenditure.

RTX completed single-line Pole-Dipole IP geophysical traverses across several magnetic targets during the option period, focusing on potential intrusion-related copper mineralisation. However, the geophysical responses did not meet RTX's internal criteria for further copper-focused follow-up, and the company elected to withdraw.

Importantly, RTX's work program was copper-focused. Legacy Minerals is now pointing to what RTX left behind — a significant intrusion-related gold opportunity that was not the primary target of the RTX program.

The standout feature is a broad drill intercept of 370 metres at 0.1 g/t Au at the Cut-A target, which has not been followed up with further drilling. In the context of near-record gold prices, that kind of wide, low-grade but large-scale gold anomaly takes on a different character than it might have when the primary focus was copper.

Key Thomson Project targets that remain untested:

• Cut-A — previous drilling returned 370m at 0.1 g/t Au, no follow-up completed
• Cut-AC — identified from regional magnetic data, undrilled
• Cut-C — identified from regional magnetic data, undrilled

The Thomson Project sits near the southern margin of the Thomson Orogen, a vast geological belt covering large portions of Queensland and north-western New South Wales. The NSW Geological Survey has noted the belt could hold mineral potential comparable to the adjoining Lachlan Orogen — which has an endowment of over 80 Moz gold and 13 Mt copper.

Legacy Minerals has stated it is currently assessing corporate transaction opportunities on the Thomson Project, suggesting the company may look to bring in a partner or monetise the asset in some form while retaining exposure to the gold upside.

Planned Drill Program at a Glance

The eight planned holes at McMahons Reef are spread across the ~700m mineralised trend, targeting both depth extensions beneath historical workings and along-strike extensions.

The dual azimuth directions indicate holes are being drilled from at least two orientations, which is consistent with testing a structurally controlled orogenic system where mineralisation may have different plunge directions.

What's Coming Next and When

The Investment Case: Multiple Irons in the Fire

Legacy Minerals is not a single-project story, and this announcement underscores that point. Consequently, the company is running several simultaneous value creation pathways across its NSW portfolio.

1. Carried exploration at Harden

Zero-cost exposure to an active drill program targeting high-grade gold at McMahons Reef, with results expected within weeks. Every metre drilled is at HTG's expense — a compelling arrangement for Legacy Minerals shareholders.

2. Equity upside in Hill Tops Gold

The 5% stake in HTG becomes materially more interesting if HTG proceeds with its targeted 2026 ASX listing. A successful listing would give Legacy Minerals a market-priced, liquid stake in a company with its own NSW gold exploration portfolio.

3. Thomson Project optionality

Regaining 100% ownership of Thomson — complete with a broad untested gold intercept of 370m at 0.1 g/t Au — in a near-record gold price environment is a genuine asset. The company's stated intention to explore corporate transaction options suggests it sees real value here worth crystallising.

4. Mt Carrington remains the flagship

Management has explicitly stated that Mt Carrington development and exploration drilling remain the primary capital allocation priority. In addition, the events in this announcement are additive, not distracting, from the core development story.

5. Diversified NSW portfolio

Legacy Minerals holds interests across multiple projects including Bauloora, Rockley, Black Range, Cobar (Aurelia Metals earn-in), Nico Young, Fontenoy, and others — providing a broad base of exploration optionality across gold, copper, silver, nickel, and cobalt.

Key Takeaway:
Legacy Minerals drilling at McMahons Reef and Thomson project returns to 100% ownership represent a situation where the company is receiving active, funded exploration across its Harden Gold Project at no cost to shareholders, while simultaneously reclaiming full ownership of a gold-prospective project that a major miner's departure has left entirely in its hands. With drill results from McMahons Reef due in Q3 2026 and a potential HTG ASX listing on the horizon, the second half of 2026 shapes up as a catalyst-rich period for LGM investors to monitor closely.

Ready to Explore What Legacy Minerals Has in Store for Investors?

With a fully funded drilling program underway at McMahons Reef, 100% ownership of the Thomson Project back in hand, and a catalyst-rich second half of 2026 on the horizon, Legacy Minerals (ASX: LGM) is positioning itself across multiple value creation pathways simultaneously — all within its diversified New South Wales portfolio. To learn more about the company, its projects, and the investment case behind LGM, visit www.legacyminerals.com.au.