Legend Mining Limited (ASX:LEG) shares recently surged as much as 180% after the company revealed assay results for discovery diamond hole RKDD007 at its Mawson Prospect within the Rockford Project in WA.
The hole intersected 14.9 metres at 1.07% nickel, 0.75% copper, 0.06% cobalt from 114 metres including 2.1 metres at 2.03% nickel, 1.24% copper, 0.11% cobalt.
Notably, the 14.9-metre sulphide zone occurs within a larger 70.15-metre disseminated sulphide halo suggesting the presence of a large mineralised system.
Euroz has increased its price target for Legend to 11 cents per share from 8 cents per share following the discovery .
Following is an extract from Euroz’ research update:
The 70m wide Ni-Cu-Co sulphide discovery at the Mawson Prospect in the NE Fraser Range is an exciting result from just the 3rd of three diamond holes.
Initial assays indicate economic grades akin to NovaBollinger within a 15m massive sulphide zone, that benefits further from associated Au and PGMs.
The mineralisation is shallow, commencing from 76m below surface.
It is associated with a large anomalous zone of supergene Ni-Cu-Co sulphides defined on air-core and occurs within a large 16x6km magnetic feature as the basis for the initial exploration activities.
Whilst a lot of further work is required before declaring this a new mine, Mawson has the ingredients to provide the framework for the next significant deposit in the Fraser Range.
Beyond which, LEG represents a solid exploration opportunity significantly levered to the upside with its +3,100km2 of exploration tenements; 2nd largest holder only to IGO.
Mark Creasy and IGO as cornerstone shareholders (~40%) further benefit LEG with the respective in-house technical capabilities they offer.
Follow up at Mawson render LEG as catalyst rich for which the Company is well funded ($13m in cash and receivables plus $10m of ITM options).
We maintain our Speculative Buy recommendation but increase our Price Target to $0.11/sh.