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  • Legend Mining Pinpoints Gold Rich Catchments At Cameroon Project 0 comments
    Jan 24, 2013 8:35 PM

    Legend Mining (ASX: LEG) has identified four anomalous areas in stream sediment sampling at its Ngovayang Project in Cameroon that have returned grades of up to 8.76 grams per tonne (g/t) gold.

    The geochemical analysis of fine and coarse sieved fractions was undertaken to assist with the interpretation of the pan concentrate results and prioritisation of follow up work.

    Gold and multi-element results for all 462 sieved samples have now been received.

    Assays from fine fraction stream sediment samples returned anomalous gold values with 13 of 231 samples reporting greater than 100 parts per billion gold and a maximum result of 8.76g/t.

    The anomalous results correlate broadly with the three pan concentrate priority areas and highlighted a fourth area where three samples from a drainage system returned values of 169, 40 and 31 parts per billion gold.

    This fourth area also returned anomalous gold values in the corresponding coarse fraction samples with values of 120, 25 and 82 parts per billion gold respectively.

    Assays from coarse fraction stream sediment samples also returned anomalous gold values, with six of 231 samples reporting greater than 100 parts per billion gold and a maximum of 1.43g/t.

    These results correlate with the two southern pan concentrate priority areas and the fourth area discovered.

    Mark Wilson, managing director, commented: "The tenor of these gold results and the correlation between fine and coarse fractions at several locations is highly significant given that the samples were taken from the active portion of the stream and not from trap sites.

    "The sampled area straddles a wide NE-SW trending regional shear corridor with associated intrusives, and contains several small scale artisanal alluvial gold workings.

    "The gold results are both exciting and pleasing to me because Ngovayang has not previously been systematically explored for gold, Legend has a large land position in what could be a new goldfield, and we have 'first mover advantage'."

    Potential proximity to gold source

    Gold grain counts from the pan concentrate samples originally highlighted three areas where "clusters" of samples containing anomalous numbers of relatively coarse, up to 2.4 millimetres, gold grains were observed.

    The gold grains are commonly angular to sub-rounded suggesting that the grains have not been transported far and may be proximal to the gold source.

    The tenor of the gold results from both the fine and coarse fractions are considered highly significant given that the samples were taken from the active portion of the stream and not from trap sites.

    The "clustering" of the anomalous samples, which define sizeable target areas, along with the correlation of fine and coarse fractions results (and pan concentrate samples) also adds to the gold prospectivity of the region.

    Multi-element assays (extended 28 element suite) from both the fine and coarse fractions are currently being assessed in the context of the regional geology.

    Interpretation of these results and element associations will provide useful information on the possible style of mineralisation.

    Based on the gold assays of the two sieved fractions and the observations from the associated pan concentrate samples, a prioritised follow up program has been designed focusing on the four identified target areas.

    Work will begin on the two central target areas which contain highly anomalous gold results in both the fine and coarse fractions.

    The southern target is also considered prospective due to elevated gold values in the fine fraction and pan concentrates, along with subdued values in the coarse fraction.

    The northern area is a lower priority given the low coarse fraction values, however the presence of elevated gold in the fine fraction along with pan concentrates warrants further work.

    Follow-up plan

    Systematic follow-up programs will involve further stream sediment sampling to better define anomalous streams, geological mapping of streams and anomalous catchments, and soil and rockchip sampling.

    On-market share buyback

    Legend Mining has bought back 2.3 million shares on-market and cancelled them since the last ASIC Form 484 was lodged, as part of its six month buyback program announced last year.

    There are now 1.96 billion shares on issue following this cancellation.

    Legend plans to buy back up to 125 million shares, which began on 17 August 2012, over a period of six months, with the scheme capped at a maximum of A$2.5 million, around 15% of Legend's available cash and liquid assets.

    The company is well funded with just under $10 million in cash and $3.7 million in listed investments at the end of the December 2012 quarter.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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