Why the Legacy Iron Ore (ASX:LCY) share price jumped 29% this morning

The Legacy Iron Ore share price was up 29% in morning trade before giving up some of those gains. We look at the latest drill results.

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The Legacy Iron Ore Ltd (ASX: LCY) share price is up 7% in early afternoon trade, having posted gains of 29% earlier in the day.

While its name may imply the Western Australian-based company solely explores for and mines iron, Legacy Iron is also focused on gold, tungsten and other mineral discoveries.

Below, we take a look at the ASX mineral explorer's latest gold results.

What gold results did Legacy Iron report?

Legacy Iron's share price is gaining today after the company reported promising results following the completion of a metallurgical testing program at its Mt. Celia Gold Project.

Those results include high gravity gold recovery averaging 47.5% across all the tests, with Legacy Iron adding there is "potential for increased gold recovery at finer grind size".

The newly completed testwork follows on from the initial results the company reported to market on 8 December. According to Legacy Iron the testing of the 3 new composite samples includes "diagnostic leach testing, ore sorting sighter testing and tailings geochemistry assessment."

The company will use the final results to move the Mt. Celia Gold Project to a prefeasibility level of study.

Commenting on the results, Legacy Iron's CEO Rakesh Gupta said:

Our results in December 2020 showed high recoveries of gold. These follow up metallurgical testwork results continue to confirm gold recoveries are high, with plenty of gravity recoverable gold and overall gold recovery in the mid-nineties.

The outcome of the results shows that this material could be processed at any conventional gold processing facility in the area or through a toll treatment agreement with local operators. These results also support the further development of our project and a pathway to production with all processing options being investigated.

Legacy Iron Ore share price snapshot

Legacy Iron first listed on the ASX in 2008.

Over the past 6 months, Legacy Iron shares are up 50%. That compares to a 15% gain on the All Ordinaries Index (ASX: XAO).

Things haven't gone as well for shareholders in 2021. Year-to-date the Legacy Iron Ore share price is down 70%.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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