ASX-listed exploration company Legacy Iron Ore is set to begin mining at its Mount Celia gold deposit in Western Australia after obtaining final approvals from the state government.

Legacy Iron Ore stated that the Blue Peter pit within the project will go into production, as it has secured final approval for the Mount Celia mining proposal and closure plan from the Department of Mining, Industry, Regulation and Safety (DMIRS).

A mining contractor is expected to undertake all the mining activities using conventional open-cut mining. The contractor is expected to be mobilised to Mount Celia this month, where it will begin mine infrastructure works.

The gold-bearing ore mined from the project will be bought by Paddington Gold Mine under an offtake agreement and will be processed at its plant 35km north of Kalgoorlie.

Legacy CEO Rakesh Gupta said: “We are excited to become Western Australia’s next gold producer. Mount Celia is the first production opportunity for Legacy Iron from a portfolio of prospective tenements in the Eastern Goldfields. The Mount Celia Gold Project will generate cash flow for the company to fund ongoing exploration and development programmes it has planned for its South Laverton Project area.

“Legacy Iron looks forward to working with all its business partners and the Nyalpa Pirniku Native Title Group to unlock the mineral resource potential of the Mount Celia Gold Project and the development of other prospective tenements.”

The Mount Celia Project is part of Legacy’s South Laverton Project, which holds several prospective tenements along the Keith Kilkenny Tectonic Zone and the southern part of Laverton Tectonic Zone.

These structures host several mines containing an estimated 20 million ounces of gold.

The project is located around 40km south of the Sunrise Dam gold mine.

Besides the Mount Celia Project, the South Laverton Project has other prospects including the Yilgangi, Patricia North, Sunrise Bore and Yerilla prospects.