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LEGEND MINING LIMITED — Capital/Financing Update 2010
May 31, 2010
65223_rns_2010-05-31_1ebf1af1-9686-4c09-8400-2fb28b0bd397.pdf
Capital/Financing Update
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1 June 2010
ASX Announcement
PROGRESS REPORT ON CAMEROON IRON ORE PROJECT
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Assay results from further 277 rockchips received
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Eseka access track underway
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Initial drill programme scheduled for September quarter
Legend Mining Limited (Legend) is pleased to announce results from a further 277 rockchip samples from the Ngovayang District at its Cameroon Project in West Africa, see Figure 1. A total of 349 samples have now been taken with the majority from the Eseka prospect (306) and the remainder from the Logmangan prospect (36) some 17km to the WSW. The rockchip sampling is non-systematic and comprises predominantly float/grab samples due to limited outcrop. The objective of the exploration team is to develop a pipeline of targets for drill testing and the Logmangan prospect has been selected to follow Eseka.
Legend Managing Director Mr Mark Wilson said “It is pleasing to see these assays confirming the tenor of the previously released results. Two bulldozers have been mobilised to the Eseka prospect to give vehicle access to the main anomalies and to provide subsurface geology. We anticipate drill testing to commence in the September quarter using a man portable diamond rig”.
Technical Discussion
Previously announced rockchip results by Legend (ASX announcement: 14 April 2010) indicated that the samples fell into three broad categories based on rock type and associated assay results; 1) massive magnetite, 2) goethitic/limonitic material after itabirite, and 3) weathered itabirite with variable iron/silica content. The results from the recent 277 samples have confirmed these categories with the additional assay information providing better statistical definition.
The massive magnetite group is characterised by high iron values between 63-69% Fe with associated low silica, alumina, phosphorus and loss on ignition (LOI) values. The goethitic/ limonitic group has an iron range of 47-63% Fe with varying levels of silica, alumina, phosphorus and LOI. Iron values of the weathered itabirite group have a range of 29-47% Fe (average 37% Fe) with associated silica ranging from 10-51% SiO2 (average 35% SiO2), which is typical for itabirite bodies.
Figure 2 shows the location of all Eseka rockchip samples with iron results plotted over an aeromagnetic image (analytical signal of total magnetic intensity). This diagram shows three “clusters” containing high grade samples of >60% Fe predominantly associated with massive magnetite. All rockchip results >60% Fe are provided in Appendix 1.
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Legend Mining Limited ABN 22 060 966 145 Level 2, 640 Murray Street West Perth Western Australia 6005 P.O. Box 626 West Perth Western Australia 6872
Telephone: +61 8 9212 0600 Facsimile: +61 8 9212 0611 Email: [email protected] Website: www.legendmining.com.au
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The high grade results and dimensions of the three “clusters” are considered encouraging, however the relationship of the samples to bedrock is unknown at present due to the lack of outcrop and the fact that most of the samples are of float material. This will only be resolved with drill testing.
Exploration at Eseka to date has focussed on geological mapping, pitting and geochemical sampling with the aim of defining drill targets. A bulldozer is currently establishing an access track which will assist a planned drilling programme utilising a man portable diamond rig.
The Logmangan prospect is dominated by a large 2km long and up to 700m wide aeromagnetic feature associated with itabirite and massive magnetite, see Figure 3. Geological mapping and geochemical sampling is at an early stage, however a 1.2km long itabirite zone with 40-50% Fe rockchip sample values has been identified. Access to the aeromagnetic high in the southeast which coincides with a topographic high has been established and geochemical sampling underway.
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Figure 1: Cameroon Project Location
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Legend Mining Limited ABN 22 060 966 145 Telephone: +61 8 9212 0600 Facsimile: +61 8 9212 0611 Level 2, 640 Murray Street West Perth Western Australia 6005 Email: [email protected] P.O. Box 626 West Perth Western Australia 6872 Website: www.legendmining.com.au
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Figure 2: Eseka Prospect – Rockchip Sample Results (Iron) on Aeromagnetic Image (Analytical Signal of Total Magnetic Intensity) showing high grade “clusters”
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Legend Mining Limited ABN 22 060 966 145 Level 2, 640 Murray Street West Perth Western Australia 6005 P.O. Box 626 West Perth Western Australia 6872
Telephone: +61 8 9212 0600 Facsimile: +61 8 9212 0611 Email: [email protected] Website: www.legendmining.com.au
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Figure 3: Logmangan Prospect – Rockchip Sample Results (Iron) on Aeromagnetic Image (Analytical Signal of Total Magnetic Intensity) Page 4 of 6
Legend Mining Limited ABN 22 060 966 145 Level 2, 640 Murray Street West Perth Western Australia 6005 P.O. Box 626 West Perth Western Australia 6872
Telephone: +61 8 9212 0600 Facsimile: +61 8 9212 0611 Email: [email protected] Website: www.legendmining.com.au
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Appendix 1 – Eseka Prospect Rockchip Results>60% Fe
| Sample No. | UTM_E | UTM_N | Fe% | **SiO2% ** | **Al2O3% ** | P% | LOI% |
|---|---|---|---|---|---|---|---|
| 583023 | 695225 | 401650 | 60.1 | 5.4 | 2.9 | 0.20 | 7.1 |
| 583245 | 696002 | 403596 | 64.7 | 1.2 | 2.4 | 0.10 | 2.5 |
| 583247 | 696707 | 401437 | 67.1 | 1.3 | 1.5 | 0.06 | 0.5 |
| 583250 | 696342 | 404199 | 66.6 | 1.2 | 1.3 | 0.01 | 0.7 |
| 583254 | 696614 | 404631 | 66.5 | 1.1 | 0.5 | 0.04 | 3.8 |
| 583255 | 696396 | 404102 | 67.1 | 1.2 | 1.3 | 0.07 | 0.9 |
| 583405 | 696117 | 398802 | 64.1 | 5.3 | 1.2 | 0.09 | 2.4 |
| 583409 | 696148 | 398799 | 64.6 | 1.2 | 1.6 | 0.22 | 5.1 |
| 583413 | 696112 | 399285 | 65.5 | 1.6 | 1.1 | 0.24 | 4.6 |
| 583414 | 696170 | 398865 | 66.4 | 1.9 | 1.7 | 0.07 | 2.0 |
| 583419 | 696241 | 399021 | 64.3 | 1.7 | 0.7 | 0.10 | 6.2 |
| 583424 | 696522 | 402800 | 64.1 | 2.4 | 1.5 | 0.04 | 4.2 |
| 583427 | 696224 | 402800 | 65.7 | 1.0 | 1.5 | 0.15 | 3.0 |
| 583428 | 696125 | 402801 | 64.2 | 1.7 | 1.4 | 0.06 | 4.6 |
| 583429 | 695962 | 402801 | 66.7 | 0.9 | 1.2 | 0.09 | 3.1 |
| 583430 | 695903 | 402798 | 67.5 | 0.8 | 1.5 | 0.11 | 2.2 |
| 583431 | 695463 | 402800 | 66.8 | 1.0 | 1.5 | 0.09 | 1.3 |
| 583433 | 694892 | 402794 | 66.6 | 0.7 | 1.4 | 0.05 | 2.1 |
| 583455 | 697001 | 402346 | 64.1 | 1.5 | 1.7 | 0.12 | 4.4 |
| 583463 | 696174 | 402859 | 66.7 | 1.3 | 1.4 | 0.05 | 1.8 |
| 583468 | 696283 | 403009 | 60.4 | 5.3 | 3.4 | 0.07 | 3.1 |
| 583503 | 696084 | 403196 | 64.2 | 1.3 | 2.0 | 0.19 | 2.9 |
| 583508 | 696346 | 404081 | 65.0 | 1.3 | 1.1 | 0.13 | 3.3 |
| 583510 | 696316 | 399936 | 68.9 | 1.0 | 1.1 | 0.03 | -2.2 |
| 583516 | 697040 | 401986 | 67.3 | 0.8 | 2.0 | 0.06 | 0.1 |
| 583517 | 697040 | 401986 | 65.7 | 0.8 | 1.7 | 0.11 | 2.2 |
| 583521 | 697095 | 402080 | 60.8 | 7.9 | 0.9 | 0.21 | 3.5 |
| 583703 | 696637 | 401589 | 67.2 | 1.1 | 2.5 | 0.04 | 0.6 |
| 583706 | 696100 | 399251 | 67.4 | 1.0 | 1.5 | 0.04 | -0.6 |
| 583708 | 696254 | 399206 | 68.4 | 1.2 | 1.3 | 0.04 | -1.8 |
| 583725 | 696610 | 401601 | 67.5 | 1.1 | 1.3 | 0.07 | 1.3 |
| 583736 | 696867 | 402386 | 65.2 | 1.3 | 2.2 | 0.12 | 3.2 |
| 583737 | 696863 | 402366 | 63.7 | 1.3 | 2.0 | 0.17 | 4.9 |
| 583141b | 696287 | 398005 | 66.7 | 1.4 | 1.7 | 0.02 | 1.6 |
| 583459b | 696180 | 402715 | 67.0 | 0.7 | 1.0 | 0.23 | 1.6 |
| 583460a | 696159 | 402573 | 65.8 | 1.7 | 1.9 | 0.06 | 1.0 |
| 583467b | 696222 | 402988 | 61.8 | 3.6 | 2.8 | 0.12 | 4.1 |
| 583501A | 696230 | 403200 | 68.8 | 0.8 | 1.0 | 0.03 | 0.1 |
| Co-ordinates: Universal Transverse Mercator WGS84, Zone 32 ,Northern Hemisphere Assay Method : Fe, SiO2, Al2O3by fusion XRF, Fe% and P% calculated from Fe2O3and P2O5fusion XRF respectively, LOI – Loss on Ignition at 1,0000C by fusion XRF |
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Legend Mining Limited ABN 22 060 966 145 Level 2, 640 Murray Street West Perth Western Australia 6005 P.O. Box 626 West Perth Western Australia 6872
Telephone: +61 8 9212 0600 Facsimile: +61 8 9212 0611 Email: [email protected] Website: www.legendmining.com.au
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Background
Legend currently holds interests in an iron ore Project in Cameroon, West Africa, and three Projects in WA, namely, Pilbara, Gum Creek and Mt Gibson.
The Cameroon Project (iron ore, gold) comprises granted exploration permits and applications covering an area of approximately 3,900km[2] . Discovery of 50Mt of direct shipping ore (DSO) is the primary target, however itabirite ore (lower grade but potential very high tonnage) will also be targeted. The southern project area has the added advantage of being well served by access infrastructure including rail and road networks to and from the port city of Douala.
The Pilbara Project (iron ore, nickel-copper, zinc-copper) comprises 686km[2 ] of tenure in the West Pilbara, all within 50km of Karratha. As well as the magnetite potential associated with BIF of the Cleaverville Formation, Legend has identified 14 priority base metal drill targets from Versatile Time-Domain Electromagnetic (VTEM) surveys.
The Gum Creek Project (iron ore, nickel-copper-platinum group element) is located 640km northeast of Perth in the Yilgarn Province. The Woodley region contains a 22km BIF unit with the potential for a significant tonnage of magnetite. The project is also considered prospective for both intrusion-related (Ni-Cu-PGE) and komatiite flow-related Ni-sulphide mineralisation.
The Mt Gibson Project (zinc-copper-gold) is located 290km northeast of Perth in the Murchison Province. Mt Gibson operated for 12 years as a gold mine from 1986 following the discovery of gold in surface laterite. The operation produced 870,000 ounces of gold from 16.5Mt of ore at an average grade of 1.68g/t. Legend, through a study conducted in 2006 by Dr S Carras of Carras Mining Pty Ltd, estimated the residual gold Mineral Resource (Indicated and Inferred) to be 8.7Mt at 1.98g/t gold for 559,000 ounces (see 2006 Legend Annual Report).
Visit www.legendmining.com.au for further information and announcements.
For more information: Mr Mark Wilson Mr Derek Waterfield Managing Director Exploration Manager Legend Mining Limited Legend Mining Limited Ph: (08) 9212 0600 Ph: (08) 9212 0600
Competent Person Statement
The information in this announcement that relates to Exploration Results is based on information compiled by Mr Derek Waterfield, a Member of the Australian Institute of Geoscientists and a full time employee of Legend Mining Limited. Mr Waterfield has sufficient relevant experience in the styles of mineralisation and types of deposit under consideration, and in the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code), and consents to the inclusion of the information in the form and context in which it appears.
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Legend Mining Limited ABN 22 060 966 145 Telephone: +61 8 9212 0600 Facsimile: +61 8 9212 0611 Level 2, 640 Murray Street West Perth Western Australia 6005 Email: [email protected] P.O. Box 626 West Perth Western Australia 6872 Website: www.legendmining.com.au