Legend Mining will see continued upward trajectory with further drilling success: Euroz

Legend Mining Limited (ASX:LEG) shares recently surged after intersecting a total of 24.65 metres of nickel-copper sulphides in a diamond hole at Mawson prospect within the Rockford Project on WA’s Fraser Range. Hole RKDD021 intersected two encouraging intervals - 9.3 metres of heavy disseminated to net-textured sulphide from 132.2 metres and 15.35 metres of net-textured, heavy disseminated and semi-massive sulphide from 219.1 metres. Euroz analyst Jon Bishop published a ‘Quick Comment’ on Legend reiterating his speculative buy recommendation and 30 cents per share price target (current price: 15 cents). The following is an extract from the research update: 25m Ni-Cu Sulphide Mineralisation Intercepted 200m from last known Key Points LEG has encountered significant mineralisation associated with the off-hole DownHole ElectroMagnetic (“DHEM”) conductor defined in hole #13: The 24.65m of mineralisation occurs within 100-150m from surface in two zones within an intrusive ultramafic olivine gabbronorite: 9.3m of heavy disseminated to net-textured sulphide from 132.2m – 141.5m downhole (c.100m below surface); 15.35m of net-textured, heavy disseminated and semi-massive sulphide from 219.1m – 234.45m downhole (c.150m below surface) The significance is that it is up to 200m north east of the discovered massive sulphide mineralisation at Mawson main: TECHNICAL SIGNIFICANCE DHEM is working in terms of locating Ni-Cu sulphide mineralisation in the primary rock The drill hole represents up to 200m step-out from last drilled mineralisation where the previous drilling defined mineralisation over an implied strike of c.120m; The hole encountered a basal contact (contact at which massive mineralisation will precipitate); Mineralisation occurs within an ultramafic intrusive (prior mineralisation drilled occurs within host country metasedimentary rocks); Presence of net-texture through semi-massive mineralisation: We note the literature on Voisey’s Bay and Nova Bollinger that highlight the significance of net-texture (matrix style) Ni-Cu sulphide mineralisation proximal to massive sulphide ore: “Sulfide-silicate textures in magmatic Ni-Cu-PGE sulfide ore deposits: Massive, semi-massive and sulfide-matrix breccia ores” – Barnes et al. Oct 2018 “Nova-Bollinger Ni-Cu sulfide ore deposits, Fraser Zone, Western Australia: Petrology of the host intrusions sulfide-silicate textures and emplacement mechanisms of the ores” – Taranovic et al, 2019 Mineralisation remains shallow and we note that net textured, disseminated mineralisation is mined as bulk tonnage ore at Voisey’s Bay These elements combined with the presence of PGEs and Au in previous assays, suggests to us that the current discovery is proximal to the main massive sulphide intrusive source and potential ore body; Drilling will finish at the current hole before DHEM survey is run and structural geological interpretation of the core is undertaken; Follow-up diamond holes will be oriented at completion of this work whilst RC drilling remains ongoing to the east; Very simply: should LEG encounter any significant semi-massive to massive mineralisation coincident with the new DHEM feature and/or the northnortheast aircore anomalism, we view that the Company will be in-play Investment Thesis This latest hole is a material step-out from previous know zone of mineralisation. Significantly, the 25m zones of mineralisation occur within ultramafic intrusives; define a basal contact; and carry textures consistent with major massive magmatic Ni-Cu sulphide discoveries elsewhere on the Fraser Range and globally. On-going hits of thick, massive Ni-Cu sulphides are highly encouraging in terms of the evolution of a major new discovery. High grade Ni, Cu and Co with precious metals credits supports in situ values north of US$500/T of ore. And given the aerial geochem footprint is extending materially to the north east, combined with clear evidence that the geophysics are starting to bear fruit, we are sure of on-going drilling success. LEG has $30m in cash and receivables and a further c.$19.5m of options in the money so is very well funded to execute the current programme. Further drilling success will see continued upward trajectory given SIR.ASX was sold eventually for c.A$1.8Bn for its Nova-Bollinger discovery. Speculative Buy maintained.