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LEGEND MINING LIMITED — Interim / Quarterly Report 2012
Oct 8, 2012
65223_rns_2012-10-08_b9c63b48-7155-4239-82c2-5caa232d2ed3.pdf
Interim / Quarterly Report
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SEPTEMBER 2012 QUARTERLY REPORT
9 October 2012
LEGEND MINING LIMITED
HIGHLIGHTS
ASX Symbol: LEG ABN 22 060 966 145
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Plateau drilling programme completed.
-
Significant thicknesses and grades of magnetite returned from laboratory assays.
Level 2, 640 Murray Street West Perth Western Australia 6005 PO Box 626 West Perth Western Australia 6872
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All drilling suspended due to heavy seasonal rains.
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Independent Consultants (Golder Associates) engaged for a Project review leading to recommendations re future work.
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Gold programme planned at Ngovayang.
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Treasury swap from IGO to SIR.
Phone: +61 8 9212 0600 Facsimile: +61 8 9212 0611 Email: [email protected]
www.legendmining.com.au
OVERVIEW
Good progress was made at the Ngovayang Iron Ore Project during the September quarter. The drilling programme at Plateau prospect was completed before the onset of the heavy seasonal rains. Assays received and reported during the quarter continued to demonstrate significant thicknesses and grades of magnetite.
CONTACT
Mr Mark Wilson Managing Director
Additionally the visit of an experienced magnetite geologist from Golder Associates Pty Ltd (“Golder”) was a critical catalyst to bring together mapping, drilling results and structural interpretations of the Melombo East prospect into a robust high level optimisation report for Melombo East. Further work by Golder is aimed at producing recommendations for metallurgical testwork and drilling programmes to further develop the project.
Meanwhile a stream sediment sampling programme, focussed on the gold potential of the project, will be undertaken in the December quarter. Results will be reported as appropriate.
PROJECTS
Cameroon: iron ore, gold
The Board made a decision to sell the remaining holding in Independence Group NL (600,000 shares) and reinvest the money into Sirius Resources Ltd (ASX:SIR). Legend’s current holding in SIR is 1.5M shares at a cost price of $1.25/share. This compares favourably with the current market price of circa $2.70/share.
SEPTEMBER 2012 QUARTERLY REPORT
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1. CAMEROON PROJECT
The Cameroon Project comprises three granted exploration permits covering an area of approximately 2,970km[2] and is considered prospective for iron ore and gold, see Figure 1. Magnetite-gneiss has been identified as the primary source of iron ore at the project.
Drilling
Diamond drilling continued during the September quarter with a total of five holes (DH097-101) completed at the Plateau Prospect, see Figure 2. Heavy seasonal rains caused the drilling to be suspended on 22 August 2012.
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Figure 1: Cameroon Project Location and Infrastructure
SEPTEMBER 2012 QUARTERLY REPORT
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Figure 2: Ngovayang Project - Target Areas over Aeromagnetic Image (Analytical Signal of Total Magnetic Intensity)
SEPTEMBER 2012 QUARTERLY REPORT
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Plateau
A total of five diamond drillholes (DH097-101) for a total of 280.3m were completed during the quarter at the Plateau Prospect before seasonal rains suspended drilling, see Table 1 for drillhole details. Twenty six holes for 1,793m have now been completed at Plateau, along six NW-SE trending traverses spaced 500-600m apart with holes every 100m along the traverses, see Figure 3.
| Table 1: | Plateau Prospect -Diamond Drilling Summary | Plateau Prospect -Diamond Drilling Summary | Plateau Prospect -Diamond Drilling Summary | Plateau Prospect -Diamond Drilling Summary |
|---|---|---|---|---|
| Hole ID | Easting | Northing | Dip/Azimuth | Final Depth |
| DH097 | 666455 | 354768 | -90/000 | 65.4 |
| DH098 | 666366 | 354829 | -90/000 | 33.4 |
| DH099 | 666864 | 355224 | -90/000 | 35.9 |
| DH100 | 666923 | 355143 | -90/000 | 90.8 |
| DH101 | 666988 | 355097 | -90/000 | 54.8 |
| **Total ** | 280.3 |
Drillholes DH097-DH098 utilised a new track mounted rig – HQ & NQ core sizes. Drillholes DH0 99-101 utilised Ingetrol man portable diamond drilling rig – HQ & NQ core sizes. Co-ordinates: Universal Transverse Mercator WGS84, Zone 32, Northern Hemisphere.
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Figure 3: Plateau Prospect - Drillhole Locations over Aeromagnetics
SEPTEMBER 2012 QUARTERLY REPORT
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Drillholes DH097-101 are located on the northern most drill sections of the 2.5km long Plateau aeromagnetic feature, associated with NE-SW striking outcrop of magnetite gneiss. These holes intersected the same geological sequence as previous drillholes, with varying thicknesses of interbedded magnetite gneiss.
Drillholes DH076-079, 088, 090 and 092, which intersected significant downhole thicknesses of magnetite bearing gneiss (54.2m-100.4m) were sampled in their entirety over nominal 4m composite intervals and submitted for a standard iron ore suite of elements. Full analytical results were received and are summarised in Table 2 below.
| Table 2: Plateau – Diamond Drillhole | Table 2: Plateau – Diamond Drillhole | Table 2: Plateau – Diamond Drillhole | Table 2: Plateau – Diamond Drillhole | Table 2: Plateau – Diamond Drillhole | Results | Results | |||
|---|---|---|---|---|---|---|---|---|---|
| From (m) |
To (m) |
Int (m) |
Fe (%) |
SiO2 (%) |
Al2O3 (%) |
P (%) |
LOI (%) |
Oxidation Depth (m) |
|
| Hole | |||||||||
| DH076 | 0.6 | 33.4 | 32.8 | 26.8 | 44.9 | 9.0 | 0.076 | 4.14 | 25.5 |
| 67.0 | 85.6 | 18.6 | 25.7 | 50.8 | 5.3 | 0.080 | -0.01 | ||
| DH077 | 0.6 | 7.9 | 7.3 | 38.3 | 40.3 | 2.7 | 0.127 | 1.52 | 20.3 |
| 16.0 | 29.5 | 13.5 | 26.5 | 49.9 | 6.1 | 0.078 | 0.56 | 20.3 | |
| 39.5 | 53.4 | 13.9 | 21.3 | 50.9 | 9.3 | 0.061 | -0.01 | ||
| 89.7 | 95.7 | 6.0 | 28.3 | 45.8 | 4.5 | 0.077 | -0.01 | ||
| DH078 | 6.2 | 20.6 | 14.4 | 18.7 | 55.1 | 9.5 | 0.067 | 0.22 | 10.3 |
| 32.6 | 51.4 | 18.8 | 30.2 | 48.6 | 3.4 | 0.091 | -0.01 | ||
| DH079 | 1.2 | 38.8 | 37.6 | 26.8 | 48.9 | 6.8 | 0.070 | 1.64 | 15.0 |
| 62.5 | 72.1 | 9.6 | 38.7 | 42.2 | 0.2 | 0.096 | -0.01 | ||
| DH088 | 1.0 | 66.7 | 65.7 | 31.3 | 44.0 | 3.5 | 0.076 | 0.51 | 21.0 |
| 82.5 | 88.8 | 6.3 | 28.0 | 44.9 | 4.7 | 0.075 | -0.01 | ||
| DH090 | 1.3 | 78.8 | 77.5 | 28.6 | 45.3 | 6.2 | 0.076 | 1.92 | 25.9 |
| DH092 | 1.3 | 60.5 | 59.2 | 34.1 | 44.3 | 2.8 | 0.115 | 0.82 | 32.4 |
| 76.6 | 82.7 | 6.1 | 27.0 | 49.1 | 5.7 | 0.110 | -0.01 |
Note : The “Oxidation Depth” is the depth of total oxidation. Iron grades associated with magnetite gneiss in the oxidised zone are generally higher, however metallurgical testwork is required to characterise this zone. Assay Method: Fe, SiO2, Al2O3, P by fusion XRF – ALS, Ireland. LOI – Loss on Ignition at 1,000[0] C determined gravimetrically
These results demonstrate encouraging iron grades (+25% Fe) and thicknesses (+30m) of magnetite gneiss across the prospect.
SEPTEMBER 2012 QUARTERLY REPORT
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Melombo East
No further drilling was conducted at Melombo East during the September quarter, with activities focussing on Phase 1 drilling at the Plateau prospect.
However, a simplified geological model for the occurrence of the magnetie gneiss unit has been developed based on; geological mapping, previous geophysical modelling and the reinterpretation/logging of all drillholes. The model comprises two NE-SW trending synclines approximately 4.3km long and 900-1,700m wide, with the magnetite gneiss ranging in thickness between 30-80m. Whilst this model is considered quite robust and fits the current drilling data, further drilling is required to add confidence to the interpretation.
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Figure 4: Melombo East Prospect - Drillhole Locations over Aeromagnetics
Review and Future Work
Golders have been engaged by Legend to conduct a review of the Ngovayang Iron Ore Project. A senior geologist from Golders experienced in magnetite visited the project in August and a high level optimisation report has been delivered to Legend following his site visit and subsequent work in the Golders Perth Office. The optimisation work was based on the Melombo East geological model and the metallurgical testwork from the Alpha Prospect. The high level optimisation report indicates the potential of Melombo East, should the magnetite mass recovery and concentrate quality be similar to the sighter testwork from the Alpha Prospect. The review will result in recommendations to Legend concerning future work at the project especially regarding appropriate metallurgical testwork and drilling to bring Melombo East to a JORC compliant Inferred Resource status.
SEPTEMBER 2012 QUARTERLY REPORT
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Gold Stream Sediment Sampling Programme
Following a regional review of the gold potential of the Ngovayang Project, a stream sediment pan concentrate sampling programme will be undertaken, focussing on an area on the eastern side of the Ngovayang massif. The area of interest straddles a major NE-SW trending shear corridor (marking the SE boundary of the massif) and contains a large “circular” feature identified in remote sensing data, interpreted to be intrusion related. Previous non-systematic pan concentrate sampling in the region has indicated the presence of gold, while reports of minor alluival workings adds to the potential of the area.
The sampling programme is planned for the December quarter.
2. CORPORATE
Share Buy Back
As reported to the ASX on 2 August 2012 and 14 August 2012, Legend announced its intention for an on market buy back up to 125,000,000 of its shares to a maximum of $2.5M. All purchases will be reported on a daily basis as per ASX regulations. The buyback is yet to be activated.
Treasury Operations
During the quarter Legend sold its remaining holding (600,000 shares) in Independence Group NL (ASX:IGO) and has purchased 1,500,000 shares in Sirius Resources Ltd (ASX:SIR) at an average price of $1.25 per share.
Competent Persons Statements
The information in this announcement that relates to Exploration Results has been compiled by Mr Derek Waterfield, a Member of the Australian Institute of Geoscientists and a consultant to 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.
SEPTEMBER 2012 QUARTERLY REPORT
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APPENDIX 1: Full Details of Diamond Drilling Programme - Plateau Prospect
| Hole ID | Easting | Northing | Dip/Azimuth | Final Depth |
|---|---|---|---|---|
| DH076 | 665287 | 353390 | -90/000 | 100.44 |
| DH077 | 665370 | 353318 | -90/000 | 100.15 |
| DH078 | 665616 | 353903 | -90/000 | 73.39 |
| DH079 | 665681 | 353845 | -90/000 | 86.10 |
| DH080 | 665742 | 353778 | -90/000 | 68.90 |
| DH081 | 665830 | 353713 | -90/000 | 30.21* |
| DH082 | 665920 | 353641 | -90/000 | 68.65 |
| DH083 | 665818 | 353713 | -90/000 | 30.20* |
| DH084 | 665606 | 353130 | -90/000 | 32.89* |
| DH085 | 666225 | 354175 | -90/000 | 76.45 |
| DH086 | 665524 | 353190 | -90/000 | 100.44 |
| DH087 | 666150 | 354248 | -90/000 | 93.40 |
| DH088 | 665430 | 353251 | -90/000 | 100.34 |
| DH089 | 665069 | 352791 | -90/000 | 70.44 |
| DH090 | 666059 | 354302 | -90/000 | 86.58 |
| DH091 | 665996 | 354363 | -90/000 | 29.95* |
| DH092 | 664993 | 352860 | -90/000 | 90.76 |
| DH093 | 664913 | 352919 | -90/000 | 28.61* |
| DH094 | 666675 | 354561 | -90/000 | 48.15* |
| DH095 | 666601 | 354634 | -90/000 | 95.28 |
| DH096 | 666525 | 354702 | -90/000 | 101.43 |
| DH097 | 666455 | 354768 | -90/000 | 65.43 |
| DH098 | 666379 | 354820 | -90/000 | 33.38* |
| DH099 | 666864 | 355224 | -90/000 | 35.89 |
| DH100 | 666923 | 355143 | -90/000 | 90.77 |
| DH101 | 666988 | 355097 | -90/000 | 54.76 |
| Total | 1,792.99 |
* Drillhole abandoned due to poor ground conditions and rig limitations.
Drillholes DH076, 93, 99-101 utilised Ingetrol man portable diamond drilling rig – HQ & NQ core sizes. Drillholes DH094-DH098 utilised a new track mounted rig – HQ & NQ core sizes. Co-ordinates: Universal Transverse Mercator WGS84, Zone 32, Northern Hemisphere.
SEPTEMBER 2012 QUARTERLY REPORT
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APPENDIX 2: Logged Magnetite Bearing Gneiss Intervals - Plateau Prospect
| Hole | From | To |
Int | Description |
| DH076 | 0 | 81.6 | 81.6 | Significant intersection of magnetitegneiss |
| DH077 | 16 | 100.2 EOH | 84.2 | Significant intersection of magnetitegneiss |
| DH078 | 12.1 32.6 68.9 |
20.6 51.4 73.4 EOH |
8.5 18.8 4.5 |
Three intervals of magnetite gneiss 41% of hole contains magnetite gneiss |
| DH079 | 0 | 77.2 | 77.2 | Significant intersection of magnetitegneiss |
| DH080 | 0 | 48.2 | 48.2 | Top50% of hole contains magnetite bearing gneiss |
| DH081 | 0 | 27.2 | 27.2 | Hole not completed;85% magnetitegneiss |
| DH082 | 48.3 | 68.7 EOH | 20.4 | Bottom 20% contains magnetite bearing gneiss |
| DH083 | 0 | 30.2 | 30.2 | Hole not completed – all magnetitegneiss |
| DH084 | 0 | 32.9 | 32.9 | Hole not completed – all magnetitegneiss |
| DH085 | 0 | 49 | 49 | Top50% of hole contains magnetite bearing gneiss |
| DH086 | 0 | 54.2 | 54.2 | Top45% of hole contains magnetite bearing gneiss |
| DH087 | 18.5 | 58.9 | 40.4 | 40% of hole contains magnetite bearing gneiss |
| DH088 | 0 | 100.4 EOH | 100.4 | Significant intersection of magnetitegneiss |
| DH089 | 0 29.2 |
13.7 57.7 |
13.7 28.5 |
Two intervals of qtz-magnetite gneiss 55% of hole containsmagnetite bearing gneiss |
| DH090 | 0 | 78.8 | 78.8 | Significant intersection of magnetite bearing gneiss |
| DH091 | - | - | - | Hole not completed – no magnetitegneiss |
| DH092 | 0 70.5 |
60.5 90.8 EOH |
60.5 20.3 |
Significant intersection of magnetite bearing gneiss Bands of qtz-magnetite gneiss |
| DH093 | 0 | 4.6 | 4.6 | Hole not completed – 15% magnetitegneiss |
| DH094 | 23.8 | 31.6 | 7.8 | Hole not completed – 20% magnetitegneiss |
| DH095 | 35.1 | 73.5 | 38.4 | 45% of hole contains magnetite bearing gneiss |
| DH096 | 45.1 | 65.3 | 20.2 | 20% of hole contains magnetite bearing gneiss |
| DH097 | 10.6 | 22.0 | 11.4 | 28% of hole contains magnetite bearing gneiss |
| DH098 | - | - | - | Hole not completed – no magnetitegneiss |
| DH099 | - | - | - | No significant magnetitegneiss |
| DH100 | 2.9 | 12.1 | 9.2 | 29% of hole contains magnetite bearing gneiss |
| DH101 | 18.1 | 23.8 | 5.7 | 21% of hole contains magnetite bearing gneiss |
Note: Intersections are downhole widths and not necessarily true thicknesses.
Drillholes not completed due to poor ground conditions and rig limitations.
Assessment of all results will determine if not completed holes are redrilled.
SEPTEMBER 2012 QUARTERLY REPORT
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