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.
Further drilling success will see continued upward trajectory for Legend’s share price
Legend Mining Ltd 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.