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Legend Mining ramps up towards JORC iron resource at Melombo East, delivers exploration target

Legend Mining (ASX: LEG) has established an exploration target of 300 to 500 million tonnes at 16-40% iron for its Melombo East Prospect in Cameroon, West Africa after receiving the results of geophysical modelling of airborne magnetic data.

Independent consultant Core Geophysics was contracted by Legend to undertake 2D and 3D magnetic modelling over the prospect to evaluate the magnetite potential of the project.

Recent assays from two diamond drill holes at Melombo East returned commercially significant intercepts of 116.2 metres at 26.2% iron including 79.1 metres at 29.7% iron, and 80.5 metres at 36.6% iron. Both holes ended in high grade, plus-35% iron mineralisation.

To date, seven holes of a 22 hole program have been drilled at Melombo East, testing a complex aeromagnetic feature that stretches 6 kilometres by 1.5 kilometres. The program is expected to be completed in the first quarter of 2012.

Legend managing director Mark Wilson commented: “When this tonnage and grade range is considered with the proximity to the coast and the metallurgical test results reported earlier this year, Melombo East continues to shape as a substantial exploration target.”

Melombo East is one of 15 exploration targets within the Ngovayang gold and iron ore project. The company is now planning to ramp up exploration to deliver an Inferred JORC Resource at Melombo East as soon as possible.

Cash Boost

Legend is expecting to have over $20 million in the bank in January next year. The company will increase its cash reserves through a recently announced A$10 million capital raising and the $7 million cash sale of its non-core Mt Gibson Gold Project in Western Australia.

The extra $17 million will allow Legend to focus solely on iron ore exploration in West Africa and accelerate exploration and development at the Ngovoyang project.