Legend Mining Limited (ASX:LEG) March 2010 Quarterly Report
Camina has recruited six Cameroon geologists and support staff and is now a functioning exploration company with field work concentrating on the targets in the Eseka region.
Legend's (ASX:LEG) (PINK:LGDMF) Cameroon Exploration Manager, Mr John Stockley, arrived in Cameroon on 4 February 2010 and is now residing in Yaounde where Camina's corporate office is based. An exploration camp has been established just outside the town of Eseka and the assays from the first batch of rockchip samples, which included nine samples of +65%Fe, were released to the ASX on 14 April 2010. Further results from the next batch of rockchip samples are expected shortly.
The results of the Gum Creek (Woodley) magnetite inversion modelling are still awaited.
1. Cameroon Project
The Cameroon Project comprises granted exploration permits and an application covering an area of approximately 3,900km2 and is considered prospective for iron ore and gold. Discovery of 50Mt of direct shipping ore (DSO) is the primary target, however itabirite ore (lower grade but potential very high tonnage) will also be targeted. The Ngovayang project area has the added advantage of being well served by access infrastructure including rail and road networks to and from the port city of Douala.
During the quarter, extensive aeromagnetic and radiometric surveys were completed over the Ngovayang and Mayo Binka areas. The results identified the occurrence of itabirite on a larger scale than previously known information indicated at Ngovayang, confirming the iron ore prospectivity of the project. Based on these results, Legend decided to exercise its right to acquire 90% of Camina SA, as approved by shareholders in December 2009, see ASX announcement 5th February 2010.
The settlement of the transaction, pursuant to the Share Sale Agreement of 22 October 2009 and Resolutions passed at the General Meeting on 4 December 2009, occurred on 4 February 2010, with the issue of:
a) 350M Legend shares,
b) 200M Legend 5 year options exercisable at 4 cents per option,
c) 400M performance options (a), exercisable for nil consideration, once a JORC compliant resource of 250Mt of iron ore containing a minimum of 50Mt of DSO is identified on the permits,
d) 400M performance options (b), exercisable for nil consideration, once a JORC compliant resource of 2Bt of iron ore containing a minimum of 200Mt of DSO is identified on the permits OR the first US$60M from sales of ore from the permits is achieved, to the Camina Vendors and Vendor nominee parties.
Aeromagnetic/radiometric surveys covering a total of approximately 3,526km2 were completed over the Ngovayang (2,566km2, 12,818 line km) and Mayo Binka (960km2, 3,177 line km) areas on 18 February 2010. Both surveys were completed at an initial flight line spacing of 400m with follow up infill lines bringing the line spacing in more prospective areas to 200m.
The Ngovayang Project aeromagnetic image of the analytical signal of total magnetic intensity shows internal banding within the metasedimentary host package, indicating the presence of magnetite within specific horizons. These magnetic units can often be correlated with itabirite mapped by le Bureau de Recherche Geologiques et Minieres (BRGM) in 1986. However, the magnetic units are much more extensive than the mapped units, indicating that the itabirite units are more widespread than previously thought, but do not always outcrop.
At Mayo Binka, the aeromagnetic image of the analytical signal of total magnetic intensity has identified magnetic features in the central eastern portion of the tenement associated with an area with known outcropping massive magnetite/hematite. Previous rockchip sampling of this outcropping massive magnetite/hematite and associated itabirite units returned iron values ranging from 55-67% Fe.
Exploration has been focussed on the Eseka area and included establishing gridlines over the prospect at 400m spacing to assist geological mapping and rockchip float sampling. Geological mapping, geochemical sampling and trenching activities are ongoing and critical to advancing the geological knowledge of the prospect in conjunction with the aeromagnetic data.
A field exploration camp has been established in the northern part of the prospect to aid field activities and logistics. Environmental approvals and base line studies with community consultation is underway in the Eseka region in preparation for future drill rig access.
Results from a total of 72 non-systematic rockchip float/grab samples have been received from Eseka, of which 60 relate directly to iron exploration. An additional 153 rockchip float/grab samples have been submitted for analysis with results pending.
The rockchip samples fall into three broad categories based on rock type and associated assay results; 1) massive magnetite, 2) goethitic/limonitic material after itabirite, and 3) weathered itabirite with variable iron/silica content.
The massive magnetite group is characterised by high iron values between 65-69% Fe with associated low silica, alumina, phosphorus and loss on ignition (LOI) values. The goethitic/ limonitic group has an iron range of 50-63% Fe with varying levels of silica, alumina, phosphorus and LOI. Iron values of the weathered itabirite group have a range of 30-47% Fe (average 39% Fe) with associated silica ranging from 11-51% SiO2 (average 39% SiO2), which is typical for itabirite bodies.
Cameroon Project - Next Phases of Work
- Continue geological mapping, geochemical sampling and trenching at Eseka.
- Evaluation of priority targets in the northern Ngovayang area in close proximity to existing rail/road infrastructure.
- Continue regional iron mineralisation target identification utilising aeromagnetic litho-structural interpretation and Landsat data processing focussing on elevated iron content and alteration patterns.
2. Pilbara Project
The Pilbara Project is located 7-50km south of Karratha in the northwest of Western Australia, and comprises 686km2 of granted tenements and tenement applications. Legend has previously defined 14 priority drill targets from airborne Versatile Time Domain Electromagnetics (VTEM) and ground EM surveys. The Project is considered prospective for nickel-copper, copperzinc and magnetite iron ore.
Legend has been invited to attend a Ngarluma Aboriginal Corporation Board Meeting to discuss outstanding issues related to the proposed heritage agreement, which has delayed field activities.
Mt Marie JV (Legend earning 70% from Fox Radio Hill PL) and Munni Munni JV (Legend 30%, East Coast Minerals NL (ASX:ECM) 70%)
- Nothing to report.
Pilbara Project - Next Phases of Work
- Heritage Agreement negotiations with the Ngarluma Aboriginal Corporation to continue.
- Drilling of previously identified VTEM/ground EM and iron ore targets, following signing of Heritage Agreement and receiving all statutory clearances.
3. Mt Gibson Project
A rehabilitation plan for the Mt Gibson plant/mill site was completed by Legend's environmental consultants following a site visit.
Mt Gibson Project - Next Phases of Work
- Final rehabilitation around the plant/mill site has commenced with a view to reducing the environmental liability.
4. Gum Creek Project
The Gum Creek Project is considered prospective for intrusion-related (Ni-Cu-PGE), komatiite flow-related (Ni) sulphide mineralisation and iron ore.
During the quarter, Legend divested its interests in one exploration licence and eight prospecting licences in the Thangoo area.
Delays in finalising the magnetic inversion modelling of high resolution aeromagnetic data over the 22km strike length of BIF at Woodley have been experienced. Results are expected shortly.
West Bungarra JV - E57/709 (Legend 70%, Gateway Mining Ltd (ASX:GML30%)
- Nothing to report.
Gum Creek Project - Next Phases of Work
- Assess the results of the magnetic inversion modelling over the Woodley BIF.
- Drill testing of ground EM conductors.
During the quarter Legend signed a Sale Agreement with Nemex Pty Ltd, a company associated with Mr Bruce Legendre, whereby Legend sold its interests in the 'Thangoo' group of tenements to Nemex for A$10,000. These tenements comprised a portion of the Gum Creek project and the board deemed that the nominal sale was preferable to dropping the tenements in question.
For the complete Legend Mining Limited March 2010 Quarterly Report including figures, please click the following link:
About Legend Mining Limited
Legend Mining Limited ("Legend") is an Australian mining and exploration company listed on the Australian Stock Exchange. Legend's mission is to make high-impact mineral discoveries and to maximise shareholder benefit from those discoveries.
The company’s exploration focus is on the discovery of iron ore, base metal and precious metal deposits at its project areas in Western Australia (Pilbara, Mt Gibson and Gum Creek) and Cameroon, West Africa.
Legend Mining Limited
Gateway Mining Ltd
East Coast Minerals Nl