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Legend Mining’s ongoing hits of thick, massive nickel-copper sulphides are highly encouraging: Euroz

Legend has $30 million in cash and receivables and a further $19.5 million of options in the money so is very well funded to execute the current drilling program.

Legend Mining Limited - Legend Mining’s on-going hits of thick, massive nickel-copper sulphides are highly encouraging: Euroz
Further drilling success will see continued upward trajectory for Legend’s share price

Legend Mining Ltd (ASX:LEG) recently added to the robust nature of Mawson prospect within the Rockford Project in WA’s Fraser Range with an intersection of 4.5 metres at 3.05% nickel, 2.32% copper and 0.19% cobalt - the best grades to date.

Euroz has reiterated its speculative buy rating for Legend with a price target of 30 cents per share (current price: 14 cents) after the recent high-grade drilling results.

The stockbroker believes on-going hits of thick, massive nickel-copper sulphides are highly encouraging in terms of the evolution of a major new discovery.

The following is an extract from Euroz’ research update on Legend:

Assay Results from RKDD015 and RKDD018 at Mawson

Key Points

  • LEG has announced assay results received from diamond drillholes RKDD015 and RKDD018 at Mawson;
  • We highlight the consistency of these results with those that gave rise to the original discovery hole (#7) and that otherwise occur proximal to the ongoing following massive sulphide intersections as follows;
  • RKDD018:
    • 19.2m @ 1.69% Ni, 1.23% Cu, 0.09% from 97.9m (incl. 4.5m @ 3.05% Ni, 2.32% Cu, 0.19% Co from 103.7m;
    • 34.65m @ 0.51% Ni, 0.35% Cu, 0.03% Co from 130.7m;
  • The grades contained in the above 4.5m intercept in hole 18 are the best seen to date at Mawson;
  • RKDD018 was designed to test the eastern extension of sulphide mineralisation in both the upper disseminated and lower massive sulphide intervals intersected in RKDD008;
  • Of particular note was the “leopard textures” encountered. Per the Voiseys Bay analogue, leopard textures are considered to indicate close proximity to an ultramafic intrusive source;
  • RKDD015:
    • 73.5m @ 0.32% Ni, 0.29% Cu, 0.02% Co from 87.5m;
    • 24.3m @ 0.22%, Ni 0.26% Cu, 0.02% Co from 279m;
  • RKDD015 was designed to test the northern extension of massive sulphide mineralisation in RKDD011 and the eastern extension of the upper sulphide zone in RKDD007;
  • LEG is progressing its 3,000m RC drilling programme over the next month;
  • We anticipate an extension of the program with further positive results and incorporation of diamond tails where warranted, with diamond drilling to follow in a success case;
  • The aircore anomalism continues to build in the eastern shadow of the main gravity feature;
  • We note substantial infill on the previous update, that is exhibiting a coherent cluster of geochem anomalism immediately adjacent to the main gravity features;
  • Furthermore, 2D modelling of these gravity features suggest densities consistent with mafic and ultramafic packages that to date appear to be possible source and host rocks for Ni-Cu mineralisation;
  • Very simply: should LEG encounter any significant semi-massive to massive mineralisation coincident with the gravity feature and/or the north-northeast aircore anomalism, we view that the Company will be in-play.

Investment Thesis

On-going hits of thick, massive Ni-Cu sulphides are highly encouraging in terms of the evolution of a major new discovery. High grade Ni, Cu and Co with precious metals credits supports in situ values north of US$500/T of ore. And given the aerial geochem footprint is extending materially to the north east, combined with clear evidence that the geophysics are starting to bear fruit, we are sure of on-going drilling success. LEG has $30m in cash and receivables and a further c.$19.5m of options in the money so is very well funded to execute the current programme. Further drilling success will see continued upward trajectory given SIR.ASX was sold eventually for c.A$1.8Bn for its Nova-Bollinger discovery. Speculative Buy maintained.

Quick facts: Legend Mining Limited

Price: 0.13 AUD

ASX:LEG
Market: ASX
Market Cap: $328.65 m
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Legend Mining's Mark Wilson hails best results to date at Mawson and updates...

Legend Mining Limited's (ASX:LEG) Mark Wilson tells Proactive's Andrew Scott they've hit their best result yet at Mawson from hole 18 - an intersection of 4.5 metres at 3.05% nickel, 2.32% copper and 0.19% cobalt the best grades to date. Wilson adds that they recently received strong support...

on 8/7/20

3 min read