Nova Like Potential Driving Legend Mining
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Legend Mining - (ASX: LEG, Share Price: $0.034, Market Cap: $70m, coverage initiated @ $0.011 in Sep 2015 – current gain of 210%)
Additional nickel-copper sulphides intersected in latest follow-up air-core drilling at Area D at Rockford Project, further reinforce potential for Nova-Bollinger-style nickel mineralisation.
LEG is a focused exploration play that also happens to be the last independent ASX-listed junior left standing with respect to Western Australia’s Fraser Range province. LEG maintains a large acreage position within what can reasonably be considered one of our most prospective, but still largely misunderstood, exploration provinces. The company’s recent air-core drilling results at its Rockford project have been described as the most significant since the world-class Nova-Bollinger nickel-copper discoveries were made by Sirius Resources. The Nova-Bollinger discoveries by Sirius led to a $1.8 billion takeover by Independence Group (ASX: IGO) back in late 2015, a far cry from Sirius’ minnow status just a few years earlier. LEG’s share price has recently hit a 12-month high of $0.039 on the back of the results.
Follow Up Air-Core Drilling at Area D
LEG has just released further air-core assay results for an additional 32 drill-holes, along with additional petrology results, from the current Area D exploration program at its Rockford Project in the Fraser Range.
Air-core drilling at Area D continued during April with a further 24 holes (RKAC199-222) for 2,259m completed, which involved close-spaced 50m infill holes that were a follow-up to the anomalous Ni-Cu-Co results from previous drill-holes RKAC151 and RKAC183. LEG also conducted 200m of infill drilling around previous anomalous hole RKAC167, together with three regional traverses over aeromagnetic lows.
Figure 1: Area D Air-core Drill Section 638,600E
The results were highly encouraging, with five 50m spaced infill drill-holes (RKAC205-209) that were a follow-up to the anomalous Ni-Cu-Co results from previous drill-holes RKAC151 and RKAC183, intersecting gabbronorite bedrock similar to RKAC183, with <1% sulphides logged in all holes. Four of the five holes returned broad intersections of 26m to 41m with nickel values ranging between 0.17-0.34% Ni and associated copper between 0.10-0.31% Cu.
The wider spaced drill-holes (200m) surrounding RKAC151 and RKAC183 intersected a variety of bedrock lithologies including gabbronorite and metasediment/granulite; however no anomalous nickel-copper results were returned. Meanwhile, petrographic examination of a bottom-of-hole sample in RKAC184, located 200m north of drill-hole RKAC183, also revealed a gabbronorite host rock with minor sulphides.
The latest air-core results are highly encouraging, as they have confirmed a highly anomalous Ni-Cu-Co mineralised section that’s greater than 300m in length, associated with a cumulate textured olivine gabbronorite host rock. Furthermore, each of the holes has ended in mineralisation.
Furthermore, petrology has shown that there are sulphides within the right host rock in a bottom-of-hole petrology sample from RKAC183. There are also positive indicators for a second mineralised intrusive around hole 167.
These results indicate that a really significant gabbronorite intrusive exists around drill-holes RKAC151/183, with the occurrence of sulphides and anomalous Ni-Cu-Co geochemistry appearing to be confined in a north-south direction along section 638600E.
A series of air-core holes that were drilled 200m north, south, west and east respectively of RKAC167 (10m @ 0.09% Ni, 0.09% Cu, 0.01% Co from 56m to EOH), did not return significant nickel-copper results. However, petrographic examination of samples from RKAC167, 188 and 189 identified the gabbronorite host rock as having similarities to the sulphide bearing drill-hole RKAC183. Further investigation of the region surrounding these drill-holes is required.
Furthermore, re-logging of bottom-of-hole samples from all 86 air-core drill-holes at Area D has verified the presence of prospective gabbronorite host rocks across the wider Area D region. This further confirms the company’s view that multiple mafic/ultramafic intrusive bodies, potentially nickel-copper mineralised, occur at Area D.
The ongoing flow of air-core drilling results have been very well received by the market, with LEG’s share price hitting a high of $0.039 in recent weeks. This represents LEG’s highest share price since late 2011 – and a trebling since we initiated coverage back in September 2015.
LEG believes that the greater Area D region has the potential to contain multiple mafic/ultramafic bodies, as evidenced by both the air-core drilling and aeromagnetic/gravity data. This has in turn significantly enhanced the prospectivity of Area D and the entire Rockford Project.
The potential for another world-class Nova-Bollinger nickel discovery is what is driving interest in LEG, which has applied a methodical and big-picture, yet cost-effective exploration approach, which has maximised its chances of success.
After a decade as a broking resources analyst with Intersuisse, Gavin helped establish the Fat Prophets Mining Report during 2005, writing and producing the report until he established MineLife during late 2010. He writes about mining and energy companies via his MineLife reports.
Disclaimer: Gavin Wendt, who is a director of Mine Life Pty Ltd ACN 140 028 799, compiled this document. It does not constitute investment advice. In preparing this report, no account was taken of the investment objectives, financial situation and particular needs of any particular person. Before making an investment decision on the basis of this report, investors and prospective investors need to consider, with or without the assistance of a securities adviser, whether the information is appropriate in light of the particular investment needs, objectives and financial circumstances of the investor or the prospective investor. Although the information contained in this publication has been obtained from sources considered and believed to be both reliable and accurate, no responsibility is accepted for any opinion expressed or for any error or omission in that information.