Legend Mining Ltd (ASX:LEG) is currently undertaking a reverse circulation drilling program at its Rockford Project in the Fraser Range district of Western Australia.
The five hole program kicked off last month, testing five strong-moderate conductors.
Valuable geological information was obtained from the first two holes at Conductors D1-D2 respectively, despite drilling difficulties resulting in their abandonment before reaching the target depth.
Mark Wilson, managing director, commented:
“When the geology from these holes is considered along with the magnetic, gravity and EM datasets the setting is consistent with the possible presence of Ni-Cu mineralisation.
"The rig has now moved to Conductor 4 and new techniques are planned to overcome difficulties experienced in the first two holes. We will drill new holes at Conductors D1 and D2 later in this program.”
Fraser Zone rocks within the Rockford Project
As these are the first deep reverse circulation holes in this region of the Fraser Range Complex, Legend is able to confirm the presence of Fraser Zone rocks within the Rockford Project.
The information obtained from the drilling to date is seen as positive and highlights the prospectivity for nickel-copper mineralisation.
The Rockford Project
Rockford covers 2,939 square kilometres and comprises eight contiguous granted exploration licences.
A large portion of the project (2,530 square kilometres) is the subject of a joint venture between Legend (70%) and Creasy Group (30%), with Legend operator and manager of the joint venture.
The project covers a strike length of 100 kilometres over a regional gravity high “ridge” associated with dense mafic/ultramafic intrusive rocks of the Fraser Zone, within the larger Albany-Fraser Orogen.
The Nova-Bollinger deposit, which lies within the Fraser Zone, is situated on a similar tenor gravity ridge to that of the Rockford Project.
Analysis
With drilling underway, news flow will continue over the coming months.
Legend is particularly well-funded, with $6.2 million in cash at the end of 2015.
In addition to this is investments of $2.4 million (market value 15 January), and a $3 million receivable due in December 2016.
Recently, Legend also received a $93,000 tax refund, and based on current expenditures and budgets for the 2016 tax year, the company expects to receive circa $500,000 refund early in 2017.
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