A detailed 3D seismic cube has helped Legend Mining identify what it says are compelling targets within its Octagonal nickel-copper prospect, which sits within the same structural corridor as IGO’s Nova-Bollinger deposit in WA’s Fraser Range.
The company says data processing results support its exploration model that suggests the intrusive complex continues below previously completed drilling. With the data processing phase finished, management has moved quickly to incorporate its fresh numbers with existing modelling and further interpretation is still to come.
The company is now ranking the swag of targets uncovered by its modelling ahead of a diamond drilling campaign scheduled for a May start to the 2023 field season.
Legend Mining managing director Mark Wilson said: “The cube gives new information below and outside of existing drilling, all of which will assist in the ranking of holes for the diamond drill programme at Octagonal scheduled for commencement in May 2023.”
The Octagonal prospect is part of the company’s Rockford project and the aim of the survey was to get a better understanding of the structure of the Octagonal Intrusive Complex to a depth of 1500m. The decision to splash the cash on the survey came from the success the company had in drilling seismic targets at its Mawson deposit.
In February, Legend declared a maiden nickel-copper-cobalt resource at the Mawson deposit, which it believes still has plenty of room to grow. It says it could be comparable to about a year’s worth of the production from its heavyweight Fraser Range neighbour IGO’s Nova discovery.
Management’s initial Mawson estimate clocks in at 1.45 million tonnes at 1.14 per cent nickel, 0.74 per cent copper and 0.07 per cent cobalt for a nickel equivalent grade of 1.2 per cent.
Mawson is also part of Legend’s Rockford project and the company says it already has 28,200 tonnes of contained metal consisting of 16,500t nickel, 10,600t copper and 1100t of cobalt.
The Rockford project covers more than 3000 square kilometres within the celebrated Fraser Range, about 250km east of Kalgoorlie. The region came to prominence almost a decade ago after the game-changing Nova-Bollinger nickel, copper and platinum discovery.
IGO’s Nova deposit is forecast to push out about 23,000 tonnes of nickel, about 10,000 tonnes of copper and 900 tonnes of cobalt in a year.
Legend’s share price was up nearly 14 per cent to 4.9 cents during today’s intraday trading on the back of its news and a reason why might be the market’s renewed enthusiasm for copper.
Trafigura, the world’s biggest private metals trader, has forecast copper prices to hit a record high this year with China set to gorge already low stockpiles because of its demand risks.
Global inventories of the versatile metal, which is used in everything from power cables to electric vehicles, have dropped to their lowest seasonal level since 2008, setting up a supply squeeze if demand in China continues to roar.
Investment bank Goldman Sachs also joined the bullish chorus last weekend with its prediction that the world will run out of visible copper inventories by the third quarter of this year if demand in China continues unabated.
So far this year, copper has been the best-performing industrial metal, gaining six per cent.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Steve Kaless
