Offering promise is that Legend might be getting closer to the source of the gold from its exploration program.
Stream sediment sampling and gold panning has suggested a 4km2 target area with extensive alluvial artisanal workings identified within the target area.
Promisingly, the target area has never been systematically explored for gold using modern methods.
Legend's managing director Mark Wilson said:
"These are exciting developments as the area has never been systematically explored for gold using modern methods and the 4km2 target area is large enough to hold a significant gold deposit.
The shape and nature of some of the small gold nuggets panned from the creeks suggests that we are getting close to the source of the gold.
In addition, a hydrothermal origin for some gold grains, based on silver content, is suggested from scanning electron microscope work by the CSIRO.
Elevated silver compositions suggest a primary hydrothermal origin for those grains and greatly increases the prospectivity of the area.
The focus of the fieldwork during the March quarter was geological mapping and sampling priority gold target areas identified in the 2012 work programme.
The assays reported in February 2013 were very encouraging as they provided a good correlation with the visual gold observed in the pan concentrates from the stream sediment samples.
The ongoing programme is designed to further refine prospective areas with the aim of developing drill targets.
To date, 540 pan concentrates, 154 fine fraction stream sediment samples and 161 rockchip samples have been collected with the aim of locating the source of gold panned in numerous drainage systems.
Five drainages covering an area of 4km2 in the central portion of the target area consistently returned pan concentrate samples with ≥25 gold grains.
These drainages are shedding several E-W to NE-SW trending topographic "ridges" and in most cases contain small scale alluvial artisanal workings.
Artisanal workings have proven to be more extensive in this area than previously known, adding to the prospectivity. No hardrock artisanal workings have been located, and this is attributed to the limited amount of outcrop and the presence of 1-10m of highly weathered cover.
Legend said the pan concentrate method is proving to be a valuable exploration technique as it provides an "immediate" indication of the presence/absence of gold and allows rapid in-field assessment of the prospectivity of drainage systems.
Legend's belief is that the area has the potential to host significant gold mineralisation which is supported by the results of CSIRO study and the petrology report, especially when put into the regional context of highly deformed and sheared gneissic rocks with associated granitoid intrusives.
The Nkoutou target will be the focus of the next phase of work. This region ranks highly based on; rock samples containing quartz-sulphide veining, a maximum fine fraction stream sediment sample result of 1.33g/t Au, and the presence of extensive alluvial artisanal workings.
Legend finished the March quarter with $8,851,000 cash plus $3,605,000 of listed investments. Today's results are very promising indeed, with the cash + investments far outweighing the value placed by the market for Legend's iron ore project and promising gold results.
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