Legend Mining Limited (ASX:LEG) has retained a Speculative Buy rating from Euroz Hartleys Limited along with a target price of around $0.30 compared to the current share price of A$0.125.
The latest report based the rating on the company’s recent metallurgical test results from its Mawson Project which point to:
- Highly saleable bulk (copper and nickel) concentrate of 12%;
- Separate concentrates via conventional selective flotation (nickel - 13.1% and copper - 31.8%);
- Excellent metallurgical recoveries (+88% nickel and 99% copper); and
- Iron:magnesium ratio of +300:1 with no deleterious (silicate) elements.
“Exceptional test-work”
Analyst Jon Bishop said: “Early metallurgical test-work from Mawson looks exceptional with high recoveries via conventional flotation flowsheet.
“As the resource inventory footprint expands, further assays will be required, however, these are highly encouraging, and look to have similar metallurgical characteristics to the Nova-Bollinger ore”
“Next major discovery”
Drilling for the 2021 season started this month and the recent 200-metre RC intercepts (reported earlier in the year) are priority targets, as will testing the northern intercepts at depth to test the fault throw.
Bishop said: “The story is catalyst rich with a large and growing footprint auguring well for the next major discovery.
“Comparisons with major magmatic nickel-copper sulphide discoveries globally suggest that the +90 metre drill intercepts of semi-massive nickel-copper mineralisation seen at Mawson place the system in rarefied company.
“And though the mineralised intrusive source has not yet been drilled out to an economic status, occurrence of high grade massive sulphides within ultramafic intrusive rocks, net textures consistent with analogous major deposits and the presence of platinum group elements and gold suggest this is a matter of time and not ‘if’.
“We are unwavering in our conviction: Speculative Buy maintained.”