Legend Mining – (ASX: LEG, Share Price: $0.155, Market Cap: $392m, coverage initiated @ $0.011 in Sep 2015 – current gain of 1,309%)
Key Catalyst
DHTEM survey results from diamond hole RKDD021 have defined a very strong 25,000-30,000S off-hole conductor, modelled as double the strength of the conductor it was designed to test.
LEG has performed strongly since our coverage initiation at $0.011 in late 2015, although like most junior explorers there has been plenty of volatility along the way. LEG’s exploration results from its Mawson prospect in Western Australia’s Fraser Range province are the most significant since the discovery of the world-class Nova-Bollinger nickel-copper deposits by Sirius Resources. The Nova-Bollinger discoveries ultimately led to a $1.8 billion takeover of Sirius by Independence Group (ASX: IGO) in late 2015, a far cry from Sirius’ micro-cap status a few years earlier. LEG happens to be one of the last independent ASX-listed juniors properly focused on the region, with the added benefit of a strategic shareholding by Australia’s most successful prospector, Mark Creasy, a major player in the Fraser Range province. LEG’s latest diamond and air-core drilling programs at Mawson have generated the most exciting results so far.
Latest Activity
Rockford Project Update
LEG has provided another encouraging update with respect to the ongoing drilling and appraisal programs currently underway at its high-profile Mawson prospect, located within its Rockford Project in Western Australia’s Fraser Range region.
Overview
LEG has advised that down-hole electromagnetic (DHTEM) surveys within previously-drilled diamond hole RKDD021 at its Mawson prospect have identified a very strong (25,000-30,000S) off-hole conductor. The geological interpretation is that that this conductor is the extension of the 15.35m interval of significant sulphides intersected in hole 21 and is modelled as being double the strength of the conductor that hole 21 was designed to test. The diamond hole to test this conductor will be the next hole drilled once the rig completes the diamond tail on RC hole 15.
Figure 1: RKDD021 off-hole DHTEM targets and proposed diamond drill-hole
Results
Diamond drill-hole RKDD021 (designed to test a strong 12,000-14,000S off-hole conductor identified from drill-hole RKRC013) has been completed to a depth of 482.3m. The hole intersected a total of 24.65m of nickel-copper sulphide mineralisation across two intrusive packages, separated by a metasedimentary unit. The two intervals separately comprised 9.3m of heavy disseminated to net-textured sulphide from 132.2m – 141.5m downhole, and then 15.35m of net-textured, heavy disseminated and semi-massive sulphide from 219.1m – 234.45m downhole.
DHTEM surveying has been completed within RKDD021, which has resulted in a very strong 25,000- 30,000S off-hole conductor. These results have been supported by DHTEM completed in RKRC021. The conductor is interpreted to be an extension of the lower 15.35m of net textured, heavy-disseminated, and semi-massive nickel-copper mineralisation intersected in RKDD021.
Technical Significance
The observations from this step-out hole are an exciting development in the Mawson story. Geologically, LEG has now intersected significant mineralisation several hundred metres to the east northeast of its previous discovery. Importantly, the position and orientation of the conductor fits with the structural analysis of the interpreted extension orientation of the main Mawson mineralisation. The new off-hole conductor from hole 21 is modelled as double the strength of the conductor that hole 21 was designed to test.
Next Steps
Diamond drilling of the new off-hole conductor will commence upon the completion of the current diamond hole. The diamond hole is planned to a depth of 300m downhole. Structural analysis of RKDD021 has been completed, with the drill core now scheduled for sampling and assaying.
Figure 2: Diamond Drill-hole RKDD021 and RKDD022 Location over Gravity Image
Project Overview
LEG’s Rockford Project is located within the highly prospective Fraser Range district of Western Australia, covering a total area of 3,088 sq km. Exploration is primarily focussed on Nova-Bollinger style nickel-copper, along with volcanogenic massive sulphide (VMS) style zinc-copper-silver and Tropicana-style structurally-controlled gold mineralisation.
A detailed breakdown of ownership, area and manager is outlined below:
o LEG (100%) 238 sq km
o LEG (70%)/Creasy Group (30%) – two JVs covering 2,192 sq km with Legend manager
o IGO (60%)/Creasy Group (30%)/LEG (10% free-carry) JV covering 634 sq km with IGO manager
o IGO (70%)/LEG (30% free carry) JV covering 24km2 with IGO manager
Figure 3: Rockford Project with current prospect locations
Exploration results to date by both LEG and Creasy Group have highlighted six priority prospects, as shown in the graphic above. These include magmatic nickel-copper sulphide style targets at Mawson, Octagonal, Magnus and Crean and VMS style zinc-copper-silver targets at Shackleton and Worsley.
Importantly, the project tenure covers a strike length of 100km over a regional gravity high “ridge” associated with dense mafic/ultramafic intrusive rocks of the Fraser Zone, within the larger Albany-Fraser Orogen. The Nova-Bollinger deposit and the recently discovered Silver Knight nickel-copper deposit, both of which lie within the Fraser Zone, are situated on a similar tenor gravity ridge to that of the Rockford Project.
LEG 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 drill-hole RKDD007.
Summary
The ongoing diamond and RC drilling program at the Mawson prospect is generating extremely encouraging results in combination with geophysics – with the geochemical footprint at Mawson currently measuring approximately 200m x 300m. What we are seeing is a very methodical approach to exploration, with some very good drill results and then the occasional miss. This is natural in terms of the drill-out process – not every hole is going to be a winner!
Nevertheless, the company has a solid strike rate in terms of hitting massive sulphides, which is contributing to a very strong picture of a broad mineralised discovery.
In terms of share price action, things are potentially going to be a little quiet until diamond drilling resumes. In the meantime, LEG says that ongoing integration of RC, air-core and gravity datasets will assist with future diamond drill-hole planning/design.
