Legacy Iron Ore (ASX: LCY) has identified the potential for an additional major magnetite resource from field reconnaissance at Mt Alexander, which is part of the Mt Bevan project.
The identification of a thick, extensive outcrops of magnetite rich BIF over a 2.5 kilometre strike has allowed Legacy Iron to add an exploration target of 250 to 350 million tonnes at 30% to 40% iron.
Significantly for the project is the intriguing potential for fault related direct shipping ore hematite - providing a boost in early cash flows.
Sharon Heng, chief executive officer, commented “The reconnaissance at Mt Alexander illustrates the excellent potential of the Legacy/Hawthorn Resources Mt Bevan joint venture, with initial targets having the potential to add significantly to the already large magnetite resource at Mt Bevan.
"What is even more exciting for Legacy is the potential shown for the definition of DSO hematite resources.”
The new exploration target at Mt Alexander is in additional to the exploration target for the southern area of 1.5 to 2.0 billion tonnes at 30% to 40% iron.
Mt Bevan is a joint venture between Legacy Iron and Hawthorn Resources (ASX: HAW), where Legacy Iron will earn a 60% interest in the project by spending a minimum of $3.5 million to develop the project to a Pre-Feasibility status.
The project has an Inferred JORC Resource of 617 million tonnes at 32.1% iron.