Legacy Iron Ore drilling intersects 100 metre thick magnetite unit at Mt Bevan

Legacy Iron Ore's (ASX: LCY) resource extension drilling has intersected a 100 metre plus, thick magnetite unit with significant intersections up to 156 metres wide at the Mt Bevan iron ore JV project with Hawthorn Resources (ASX: HAW).

The company is making solid progress with its second phase of 6000 metre reverse circulation drilling which to date has extended the main thick magnetite unit over a two kilometre strike. So far seven holes have been drilled for 1596 metres.

This represents a 50% addition to the strike length of the zone that comprises the maiden JORC Inferred Resource of 617 million tonnes at 32.1% Fe.

The resource was announced on 20 July 2011 following the first phase reverse circulation drilling program. Mount Bevan is now shaping up to be one of Australia’s premier magnetite resources.

Sharon Heng, Legacy's chief executive officer, said “the latest drilling intersections again confirm the excellent continuity and thickness of the magnetite mineralisation.

"When drilling is completed, we look forward to a very substantial increase in the JORC compliant resource for the project.”

Results are in line with the exploration target for magnetite of 1.5 – 2.0 billion tonnes grading 30%-40% iron (Fe) for the southern part of the Western BIF target alone.

Mt Bevan is a joint venture between Legacy and Hawthorn Resources (ASX: HAW) whereby Legacy will earn a 60% interest in the project by expending a minimum of $3.5 million to develop the project to a prefeasibility status.

The first phase drilling program was conducted over some 40% of the strike length of the Western BIF unit – the first of several iron ore prospects to be drill tested within the project area.

The second phase drilling is located along strike to the north and south of the present resource. This drilling should complete coverage of the Western BIF target over the whole 11 km strike.

The drilling has taken place on along 2 drill fences spaced one kilometre along strike, and commencing 1 kilometre south along strike from the drill fence at 6779500N completed during the last phase of drilling.

The drilling on these two drill fences has defined mineralisation very similar in geometry, thickness and visual appearance to that in the resource area, and particularly the 6779 500N section previously drilled.

The 100 metre plus thick magnetite bearing BIF is seen to extend now at least 2 kilometres to the south of the present resource.

Assay results are awaited, but geological logging of the drill holes to date has produced the following intersections for the Central (main thick) BIF unit.

The company anticipates assay results will be available and reported by the end of the month, together with a further update on drilling.

Legacy will earn a 60% interest in the project by expending a minimum of $3.5 million to develop the project to a prefeasibility status.