Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

Sign up Log in

LEGEND MINING LIMITED Interim / Quarterly Report 2019

Jan 29, 2020

65223_rns_2020-01-29_0672e4fb-dd03-4a34-a25c-183485206940.pdf

Interim / Quarterly Report

Open in viewer

Opens in your device viewer

DECEMBER 2019 QUARTERLY REPORT

30 January 2020

==> picture [548 x 77] intentionally omitted <==

LEGEND MINING LIMITED

ASX Symbol: LEG ABN 22 060 966 145

Level 1, 8 Kings Park Road West Perth Western Australia 6005

PO Box 626 West Perth Western Australia 6872

Phone: +61 8 9212 0600 Facsimile: +61 8 9212 0611 Email: [email protected]

Website: www.legendmining.com.au

CONTACT

Mr Mark Wilson Managing Director

HIGHLIGHTS – Rockford Project, Fraser Range

  • Massive nickel- copper sulphides discovered and off hole conductor identified in diamond hole RKDD007

  • Annual expenditure budget for 2020 doubled

  • Next diamond and aircore drill programmes scheduled to commence in March 2020

OVERVIEW

Legend achieved a watershed milestone in December 2019 at the Mawson prospect at its Fraser Range Rockford Project with the discovery of massive nickel-copper sulphides in diamond drillhole RKDD007.

A structural report from analysis of the core from the discovery hole and the final assays in January 2020 supported the Company’s view that the hole was part of a large mineralised system. Subsequent review and modelling of the downhole EM survey data and geological input has identified an off hole conductor which is a compelling drill target for the first diamond drillhole in the March 2020 programme.

Mr Derek Waterfield Executive Director Technical

Meanwhile the regional aircore and innovative moving loop EM surveys will be ongoing throughout the project area.

PROJECTS

Rockford - Fraser Range: Nickel-Copper (Ni-Cu) Copper-Zinc-Silver (Cu-Zn-Ag) Gold (Au)

The success of hole RKDD007 has resulted in the Legend Board approving a doubling of the expenditure budget to $8M for the 2020 calendar year. The funding for this is planned to come from the Jindal debt repayment ($2.5M) and the exercise of options held by the Creasy Group ($6M). This will leave the company with a cash balance at year end very similar to the current balance of $10.3M.

1 | P a g e

DECEMBER 2019 QUARTERLY REPORT

==> picture [548 x 77] intentionally omitted <==

1. ROCKFORD PROJECT (Fraser Range District) Nickel-Copper, Copper-Zinc-Silver, Gold

Legend’s Rockford Project is located in the highly prospective Fraser Range district of Western Australia and considered prospective for mineralisation styles including: magmatic nickel-copper, VMS zinc-copper-silver and structurally controlled gold.

The Rockford Project comprises 14 contiguous granted exploration licences covering a total area of 3,088km[2] (see Figure 1). A detailed breakdown of ownership, area and manager is given below:

  • Legend (100%) 238km[2]

  • Legend (70%)/Creasy Group (30%) two JVs covering 2,192 km[2] with Legend manager

  • IGO (60%)/Creasy Group (30%)/Legend (10% free carry) JV covering 634km[2 ] with IGO manager

  • IGO (70%)/Legend (30% free carry) JV covering 24km[2 ] with IGO manager

Exploration activities completed during the December 2019 quarter at Rockford include: diamond drilling and downhole electromagnetic (DHTEM) surveying at Mawson (formerly Area D) and regional aircore drilling (see Figure 1).

==> picture [480 x 413] intentionally omitted <==

Figure 1: Rockford Project with Current Prospect Locations

2 | P a g e

DECEMBER 2019 QUARTERLY REPORT

==> picture [548 x 77] intentionally omitted <==

Mawson Prospect

During the December 2019 quarter a diamond drilling programme comprising three holes (RKDD005007) for 1,423.2m was completed at the Mawson prospect, formerly named Area D. The three drillholes were targeting the D1 and D5 low frequency moving loop electromagnetic (LF-MLTEM) conductors and anomalous nickel-copper geochemistry in previous aircore drillholes (Figure 2 & Table 1).

==> picture [485 x 330] intentionally omitted <==

Figure 2: Mawson Diamond Drillhole Locations on Aeromagnetics

Table 1: Mawson Diamond Drillhole Details Table 1: Mawson Diamond Drillhole Details Table 1: Mawson Diamond Drillhole Details Table 1: Mawson Diamond Drillhole Details Table 1: Mawson Diamond Drillhole Details Table 1: Mawson Diamond Drillhole Details
Hole MGA94-East **MGA94-North ** RL **Azimuth ** Dip **Total Depth **
Hole Target
RKDD005 638,300 6,598,670 203 0900 -700 586.2 D5 conductor
RKDD006 638,890 6,598,050 205 1350 -700 473.7 D1 conductor
RKDD007 638,500 6,598,600 202 0900 -600 363.3 Ni-Cu geochem

RKDD005 – D5 Conductor

Drillhole RKDD005 (586.2m) was drilled to test the D5 LF-MLTEM conductor and anomalous nickelcopper geochemistry in previous aircore holes. The hole intersected two gabbronorite intrusive units with the upper intrusive intersecting disseminated and blebby pyrrhotite-chalcopyrite-pentlandite sulphides between 110.3-119.9m. Elevated nickel and copper values were returned throughout this sulphide interval with a best intersection of 2.5m @ 0.05% Ni, 0.10% Cu, 0.01% Co from 110.5m.

RKDD005 also intersected a broad package of mixed metasediment/granulite containing multiple graphite±pyrrhotite bands, which coincide with the position of the modelled D5 conductor and confirmed by downhole electromagnetic (DHTEM) surveying.

3 | P a g e

DECEMBER 2019 QUARTERLY REPORT

==> picture [548 x 77] intentionally omitted <==

RKDD006 – D1 Conductor

Drillhole RKDD006 (473.7m) was drilled to test the very strong ~42,000S D1 LF-MLTEM conductor. The hole intersected a broad metasediment and granulite package containing multiple thick graphitic bands between 262-321m, which was confirmed as the targeted conductor (albeit shallower than the modelled depth of ~350m) by DHTEM surveying. No significant assays were returned from the hole.

RKDD007 – Aircore Ni-Cu Geochemical Anomaly

Drillhole RKDD007 (363.3m) was designed to test beneath anomalous nickel-copper geochemistry associated with pyrrhotite-chalcopyrite-pentlandite (po-cpy-pn) intersected in previous aircore drillholes RKAC183 and RKAC225, and follow up encouraging results from RKDD005. RKDD007 was collared in the northern part of a 400m x 200m supergene Ni-Cu-Co blanket defined by aircore drilling (see Figure 2).

RKDD007 intersected a suite of mafic/ultramafic intrusives (containing significant sulphide intervals), bedded/banded metasediment, a second mafic/ultramafic intrusive package, followed by an open ended interval of mafic intrusive (see Figure 3).

A significant nickel-copper-cobalt intersection of 14.9m @ 1.07% Ni, 0.75% Cu, 0.06% Co from 114m, including 2.1m @ 2.03% Ni, 1.34% Cu, 0.11% Co from 115.5m was returned associated with the upper mafic/ultramafic intrusive (see Figures 3 & 4). A combination of massive, semi-massive, nettextured, vein and disseminated three phase sulphides occur in this zone. The 14.9m zone is bounded uphole and downhole by broad halos of disseminated sulphides (88.2-114m and 128.9158.35m) giving an overall 70.15m downhole sulphide interval (see Tables 2 & 3).

==> picture [473 x 338] intentionally omitted <==

Figure 3: Drill Section 6,598,600N with Diamond Drillhole RKDD007

4 | P a g e

DECEMBER 2019 QUARTERLY REPORT

==> picture [548 x 77] intentionally omitted <==

==> picture [480 x 166] intentionally omitted <==

Figure 4: Ni-Cu Sulphide Mineralisation in Drillhole RKDD007 2.1m @ 2.03% Ni, 1.34% Cu, 0.11% Co from 115.5m (NQ2 core).

Table 2 summarises the 70.15m sulphide intersection and provides a breakdown with respect to four distinct sulphide zones, namely the upper disseminated, the 14.9m main sulphide zone, the 2.1m high grade interval, and the lower disseminated zone. Table 3 provides data for the 22 individual samples related to the 14.9m intersection (114-128.9m) including Au, Pd and Pt values, which are highly anomalous and significantly increase the prospectivity of Mawson.

Table 2: Diamond Drillhole RKDD007 –Significant Sulphide Intervals Table 2: Diamond Drillhole RKDD007 –Significant Sulphide Intervals Table 2: Diamond Drillhole RKDD007 –Significant Sulphide Intervals Table 2: Diamond Drillhole RKDD007 –Significant Sulphide Intervals Table 2: Diamond Drillhole RKDD007 –Significant Sulphide Intervals Table 2: Diamond Drillhole RKDD007 –Significant Sulphide Intervals Table 2: Diamond Drillhole RKDD007 –Significant Sulphide Intervals Table 2: Diamond Drillhole RKDD007 –Significant Sulphide Intervals
Hole **From ** To Int Ni% Cu % Co % **Description **
RKDD007 88.2 158.35 70.15 0.52 0.36 0.03 Full sulphide intersection
RKDD007 88.2 114.0 25.8 0.43 0.30 0.03 Upper disseminated zone
*RKDD007 114.0 128.9 14.9 1.07 0.75 0.06 Main sulphide zone
*Incl. 115.5 117.6 2.1 2.03 1.34 0.11 High grade zone
RKDD007 128.9 158.35 29.45 0.32 0.21 0.02 Lower disseminated zone
Table 3: Diamond Drillhole RKDD007 –Significant Assay Results (114-128.9m) Table 3: Diamond Drillhole RKDD007 –Significant Assay Results (114-128.9m) Table 3: Diamond Drillhole RKDD007 –Significant Assay Results (114-128.9m) Table 3: Diamond Drillhole RKDD007 –Significant Assay Results (114-128.9m) Table 3: Diamond Drillhole RKDD007 –Significant Assay Results (114-128.9m) Table 3: Diamond Drillhole RKDD007 –Significant Assay Results (114-128.9m) Table 3: Diamond Drillhole RKDD007 –Significant Assay Results (114-128.9m) Table 3: Diamond Drillhole RKDD007 –Significant Assay Results (114-128.9m) Table 3: Diamond Drillhole RKDD007 –Significant Assay Results (114-128.9m) Table 3: Diamond Drillhole RKDD007 –Significant Assay Results (114-128.9m) Table 3: Diamond Drillhole RKDD007 –Significant Assay Results (114-128.9m)
Hole From
(m)		 To
(m)		 Int
(m)		 Ni
(%)		 Cu
(%)		 Co
(%)		 MgO
(%)		 Au
(ppb)		 Pd
(ppb)		 Pt
(ppb)
RKDD007 114 115 1.0 1.20 0.64 0.06 6.61 43 46 3
RKDD007 115 115.5 0.5 1.36 0.68 0.07 4.27 61 56 9
RKDD007 115.5 116.15 0.65 2.59 1.58 0.13 2.67 24 69 2
RKDD007 116.15 116.7 0.55 0.88 0.76 0.05 8.25 79 34 1,311
RKDD007 116.7 117.05 0.35 2.67 3.01 0.15 4.58 28 26 3
RKDD007 117.05 117.6 0.55 2.10 0.56 0.11 6.19 36 29 3
RKDD007 117.6 118.65 1.05 0.23 0.19 0.02 10.87 43 13 8
RKDD007 118.65 119.45 0.8 1.94 1.27 0.10 5.05 109 45 720
RKDD007 119.45 120.15 0.7 1.46 0.71 0.08 7.88 166 43 55
RKDD007 120.15 120.55 0.4 0.90 1.04 0.05 12.20 171 56 83
RKDD007 120.55 121.2 0.65 0.73 0.73 0.05 14.65 651 157 93
RKDD007 121.2 121.75 0.55 1.17 1.04 0.06 11.18 534 195 81
RKDD007 121.75 122.5 0.75 0.29 0.30 0.02 17.86 128 29 14
RKDD007 122.5 123.3 0.8 1.53 0.78 0.09 9.73 225 259 9
RKDD007 123.3 124 0.7 0.40 0.28 0.03 19.26 254 71 12
RKDD007 124 125 1.0 0.46 0.34 0.03 18.64 238 69 53
RKDD007 125 126 1.0 0.71 0.54 0.04 16.36 558 189 39
RKDD007 126 126.95 0.95 0.82 0.77 0.05 16.17 348 113 104
RKDD007 126.95 128 1.05 0.77 0.60 0.04 14.93 131 52 3
RKDD007 128 128.5 0.5 1.28 1.52 0.07 10.93 103 46 5
RKDD007 128.5 128.7 0.2 0.62 0.48 0.04 15.65 44 20 7
RKDD007 128.7 128.9 0.2 1.71 0.37 0.09 8.33 39 24 5

5 | P a g e

DECEMBER 2019 QUARTERLY REPORT

==> picture [548 x 77] intentionally omitted <==

Examples of sulphide textures/occurrence are presented in Photos 1-5 and include; disseminated, semi-massive breccia, massive, extension vein and net-textured.

==> picture [480 x 112] intentionally omitted <==

==> picture [479 x 112] intentionally omitted <==

==> picture [479 x 112] intentionally omitted <==

==> picture [479 x 112] intentionally omitted <==

==> picture [480 x 108] intentionally omitted <==

  • Photos 1-5: Examples of sulphide textures in diamond drillhole RKDD007 (NQ2 core ~5cm) 1) Olivine websterite with mc-po-cpy-vl (Upper disseminated zone, 112.7m) 2) Norite clasts within semi-massive sulphide breccia po-cpy-pn (Main sulphide zone, 115m) 3) Massive sulphide po-cpy-pn with minor gabbronorite (High grade zone, 116m) 4) Extension vein po-cpy-pn with cubes of py-mc (Main sulphide zone, 127m) 5) Net-textured po-pn-cpy in olivine websterite (Lower disseminated zone, 135m)

  • ( Abbr: po-pyrrhotite, cpy-chalcopyrite, pn-pentlandite, vl-violarite, , mc-marcasite, py-pyrite )

6 | P a g e

DECEMBER 2019 QUARTERLY REPORT

==> picture [548 x 77] intentionally omitted <==

Regional Aircore Drilling

The Rockford regional aircore programme continued during the December 2019 quarter with a further 29 holes for 1,430m completed and all assay results now received. This drilling targeted three aeromagnetic/gravity features located within the central portion of the Rockford Project. Several drillholes intersected gabbronorite and norite, however no significant nickel or copper values were returned.

Future Programmes

  • Continue Mawson 3D modelling of geological, structural and geophysical datasets to assist diamond drillhole design.

  • Commence Mawson diamond drilling following up sulphide intersection in RKDD007.

  • Commence Mawson infill aircore drilling aimed at defining extent of Ni-Cu-Co geochem footprint.

  • MLTEM surveying/modelling over Magnus and Octagonal prospects.

  • MLTEM surveying/modelling over Crean and Worsely prospects

2. CORPORATE

Jindal Receivable

Legend received $500,000 (two $250,000 monthly payments) from Jindal Steel and Power during the December 2019 quarter. The payment of $282,658 ($250,000 principal and $32,658 interest), due on 31 December 2019 was received on 22 January 2020 (see ASX announcement 8 May 2019 for further details).

Research and Development Cash Refund

Legend lodged its FY2019 tax return in October 2019 and received a R&D cash refund from the Australian Taxation Office of $1,259,160 on 4 December 2019.

Authorised by Mark Wilson, Managing Director.

Competent Person Statement

The information in this report 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 experience that is relevant to the styles of mineralisation and types of deposit under consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Waterfield consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Legend’s Exploration Results is a compilation of previously released to ASX by Legend Mining (9 April 2018, 12 June 2018, 10 & 17 October, 19 & 27 November 2019, 9 December 2019, 15 & 23 January 2020) and Mr Derek Waterfield consents to the inclusion of these Results in this report. Mr Waterfield has advised that this consent remains in place for subsequent releases by Legend of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent. Legend confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters in the market announcements continue to apply and have not materially changed. Legend confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

7 | P a g e

DECEMBER 2019 QUARTERLY REPORT

==> picture [548 x 77] intentionally omitted <==

Visit www.legendmining.com.au for further information and announcements.

For more information:

Mr Mark Wilson Managing Director Ph: (08) 9212 0600

Mr Derek Waterfield Executive Director - Technical Ph: (08) 9212 0600

Appendix 1: Tenement Schedule as at 31 December 2019

Mining Tenements

Tenement
Reference		 Location Interest at
beginning
of Quarter		 Acquired /
Withdrawn		 Interest at
end of
Quarter		 Comments
E28/1716 Fraser Range,Western Australia 70% N/A 70% 70:30 JV
E28/1717 Fraser Range,Western Australia 70% N/A 70% 70:30 JV
E28/1718 Fraser Range,Western Australia 70% N/A 70% 70:30 JV
E28/1727 Fraser Range,Western Australia 70% N/A 70% 70:30 JV
E28/2188 Fraser Range,Western Australia 70% N/A 70% 70:30 JV
E28/2189 Fraser Range,Western Australia 70% N/A 70% 70:30 JV
E28/2190 Fraser Range,Western Australia 10% N/A 10% 10:60:30 JV
E28/2191 Fraser Range,Western Australia 10% N/A 10% 10:60:30 JV
E28/2192 Fraser Range,Western Australia 70% N/A 70% 70:30 JV
E28/2404 Fraser Range,Western Australia 100% N/A 100% 100% Legend
E28/2405 Fraser Range,Western Australia 100% N/A 100% 100% Legend
E28/2675 Fraser Range,Western Australia 30% N/A 30% 30:70 JV
E28/2676 Fraser Range,Western Australia 30% N/A 30% 30:70 JV
E28/2677 Fraser Range,Western Australia 30% N/A 30% 30:70 JV

Farm-In or Farm-Out Arrangements

Tenement
Reference		 Location Interest at
beginning
of Quarter		 Acquired /
Withdrawn		 Interest at
end of
Quarter		 Comments
None N/A N/A N/A N/A N/A

8 | P a g e

DECEMBER 2019 QUARTERLY REPORT

More from LEGEND MINING LIMITED

Share Issue/Capital Change 2026
May 10
Director's Dealing 2026
May 10
Declaration of Voting Results & Voting Rights Announcements 2026
Apr 30
Interim / Quarterly Report 2026
Apr 13
Investor Presentation 2026
Mar 29
Capital/Financing Update 2026
Mar 22
AGM Information 2026
Mar 11
Governance Information 2026
Mar 11
Annual Report 2026
Mar 11
Regulatory Filings 2026
Mar 8
View all filings →