What the Analysts Say
WHAT THE ANALYSTS SAY: This week our team of experts run the ruler over Legend Mining and Metalicity.
Website: www.breakawayresearch.com
Legend Mining (ASX: LEG)
Legend Mining (ASX: LEG) is an Australia-based junior explorer focussing activities on nickel-copper sulphide exploration in the Fraser Range area of Western Australia.
The key project is Rockford, located over the highly-prospective Fraser Zone of the Albany-Fraser Orogen, some 300 kilometres east of Kalgoorlie, which the company recently acquired a 70 per cent stake in from the Creasy Group.
In the 70 per cent-owned 2,939 square kilometre Rockford project, Legend has a quality tenement package, considered highly-prospective for Nova-Bollinger style nickel-copper sulphide mineralisation.
The project is located over the Fraser Zone, the same tectonic package that hosts the 13.1 million tonnes Nova-Bollinger project, which is located some 150km to the south-west.
Project-wide early stage exploration carried out by the Creasy Group (the project vendors) has highlighted the prospectivity of the tenements.
This previous work has also resulted in a comprehensive and high quality geophysical and geochemical database, which has allowed Legend to progress straight into advanced exploration, potentially saving $1.2 million and two to three years in early stage work.
The company is now undertaking electromagnetic surveying over three key areas to define bedrock conductors for subsequent reverse circulation and/or diamond drilling.
With an enterprise value of around $7 million Legend is well leveraged to exploration success – this is a similar position that Sirius Resources was in when the Nova discovery was made in 2012.
Being cashed up will allow Legend to carry out effective exploration, without activities being compromised by a restricted cash position.
Website: www.breakawayresearch.com
Metalicity (ASX: MCT)
Metalicity is an ASX-listed company which has recently changed its business from Health Care to Mineral Exploration.
The company’s initial project was Rocky Gully, considered prospective for Nova-style nickel-copper mineralisation, which the company has been actively exploring to date.
The acquisition of the flagship Admiral Bay zinc project was announced in late 2014, with completion and re-compliance with Chapters 1 and 2 of the ASX Listing Rules now finalised.
The company has commenced a Scoping Study on Admiral Bay.
Metalicity Limited (previously PLD Corporation) is commencing the Scoping Study following completion of the acquisition of the Admiral Bay zinc deposit, located in the Canning Basin of Western Australia.
This is one of the world’s largest undeveloped zinc projects, and there is significant scope for a Resource upgrade and expansion given that mineralisation has been intersected along a mineralised trend with a strike length of 18 kilometres.
The acquisition and proposed initial six month work program through to the completion of a Scoping Study are fully funded, with agreements in place to the tune of US$5 million with Resource Capital Funds (RCF).
The RCF funding includes a completed $0.68 million share subscription and a US$5 million royalty purchase.
The acquisition of the Rocky Gully nickel-copper project has also been finalised, which was previously held under option agreements.
Exploration work to date on this project, located near Albany in southern Western Australia has returned encouraging results for sulphide nickel-copper and VMS style mineralisation.
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