Legacy Iron Ore Ltd (ASX:LCY) has commenced the second phase of geochemical sampling and geological traversing at the Sunrise Bore, 12 kilometres east of AngloGold Ashanti Ltd’s (ASX:AGG) large producing Sunrise Dam gold mine.
Legacy's major shareholder is NMDC Limited with 78%, a state-controlled mineral producer of the Government of India, owned by the government of India and is under administrative control of the Ministry of Steel.
Sunrise Bore licence is part of the company’s South Laverton gold project in Western Australia.
The field program is designed to cover a number low to moderate priority targets which are associated with gold anomalisms noted in the first round of sampling completed in March.
A number of prospective shear structures have been identified within the project area related to gold anomalisms and nugget gold found by recent prospecting.
The exploration at Sunrise Bore is the second field program at South Laverton in 2016 and follows from drilling at the Mt Celia project, south of Sunrise Bore, intersecting 4 metres at 4.58 g/t gold.
Legacy Iron’s primary focus remains on the Mt Bevan iron ore project in Western Australia, containing 1.17 billion tonnes of magnetite mineralisation grading 34.9% iron.
Legacy Iron owns 60% interest in the Mt Bevan JV project with Hawthorn Resources Ltd (ASX:HAW).
The company will conduct mapping and surface sampling at Mt Bevan during the June 2016 quarter.
Legacy Iron has a strong balance sheet with a cash balance of $6.3 million as on 31 March 2016.
The company’s share price has increased by about 133% since March 2016. This is on the back of the recovery in iron prices as Legacy is known to be in discussions with Mt Bevan JV partner on next phases of the project.
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