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
- 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;
- 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;
- 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.
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.