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01-Dec-2020: Best Diamond Drillhole to Date at Mawson
Best Diamond Drillhole to Date at Mawson
- RKDD034 intersects 43.1m of massive nickel-copper sulphide incl. one zone of 31.1m
- Metallurgy test work to begin on RKDD034
- RKDD033 identifies lower mineralised intrusive with associated off hole DHTEM feature
- 2020 drilling activities now finished with DHTEM to be completed within the next 10 days before demobilisation
Legend Mining Limited (Legend) is pleased to report on observations from diamond drillholes RKDD033 and RKDD034 at the Mawson prospect within the Rockford Project, Fraser Range, Western Australia (See Figure 3). RKDD033 was designed to test the northern extension of the strong 25,000-70,000S off hole conductor identified from RKDD025. RKDD034 was drilled to provide a representative massive nickel-copper sulphide sample for Phase 1 metallurgical test work. The details of the observations are contained in the body of this report.
Legend Managing Director Mr Mark Wilson said: “The 2020 field season has ended in spectacular fashion at Mawson with hole RKDD034 intersecting 43.1m of massive nickelcopper sulphide including one section of 31.1m of continuous massive mineralisation. The scale of the massive mineralisation in this hole talks to the potential of Mawson. The hole was designed to provide samples for phase 1 met testing, the results of which are expected in February next year.
“Diamond hole RKDD033 has also provided a potentially significant pointer for work next year, with nickel copper sulphide intersected within intrusive host rocks at a deeper level than previously drilled at Mawson.”
--- click on the link at the top for the full announcement including photos of the drill cores, maps, diagrams and charts ---
[I do not currently hold LEG shares, however they are a very small position on my Strawman.com scorecard. I have traded them in the past, buying when there is no news and no hype, and selling on positive news like this. I expect a nice bounce today, but even a 10% bounce only lifts them around 1 cent, and they are still a LOT lower than they were at maximum hype - at around 18c to 19.5 cps in April.]
12-Oct-2020: Diggers and Dealers Conference Presentation
Also, recently (last week): 06-Oct-2020: Australian Nickel Conference Presentation
The SP of LEG has pulled back a little, and it could be a good point to jump back in for a spike on further positive drilling or assay results. There is generally a decent flow of news coming out of Legend Mining. I view this one as a trading stock rather than an investment. They are explorers so have no revenues, but they have some serious backers (substantial shareholders) as I've discussed before.
15-Sep-2020: RIU Resurgence Presentation
[I'm not currently holding LEG - but I do often trade them, selling on positive announcements, and buying back when the hype fades again.]
08-Sep-2020: 12.95m of Massive Ni-Cu sulphides in diamond hole RKDD023
Legend Mining (LEG), which is 14% owned by IGO and 27% owned by Mark Creasy (who found Nova, currently the flagship nickel/copper/cobalt mine of IGO) continue on their quest to find the next Nova. I expect them to have a good pop today on this news. I often trade LEG, but I am unfortunately not holding them currently, and I won't be buying in on an "up" day like today will be. That's usually when I sell my LEG.
27-Aug-2020: Very Strong Offhole Conductor Identified at Mawson
14-Aug-2020: Diamond Drillhole Intersects Significant Ni Cu Sulphides
28-July-2020: Strong Offhole Conductor Identified in RC Drillhole, Mawson
21-July-2020: New Aircore Assay Results Received from Mawson
Plenty of hype around this one - the MD Mark Williamson keeps referring to this possibly being the next Nova-style deposit - which it is very close to (in terms of location). He owns 6.3% of the company. IGO (the obvious buyer of LEG if they do get taken out) own 14.2%, having increased their share from 11.9% in September 2019. Finally, Mark Creasy, the legendary prospector who found Nova (now the major asset of IGO, and a world class Nickel-Copper-Cobalt mine) owns 27% of LEG. Creasy has interests in a few companies that are actively exploring, including owning 31% of GALILEO MINING (GAL), which is a much smaller company, but is actively drilling in the same area. GAL has a current market cap of $57m, whereas LEG is worth $379m at today's $0.15 SP. IGO is worth $2.64 Billion, and they reported this morning, which I'll create a straw about shortly.
I hold a small position in LEG, a larger position in IGO, but currently do not hold any GAL shares, despite receiving a recent stock tip that they were a buy. While Creasy's 31% of GAL sounds like a lot, that's worth $17.7m. Creasy's 27% of LEG is worth $102.3m, and Mark also owns 13% of IGO, with that stake currently worth a whopping $343m, and that value is set to increase today with a positive market reaction to IGO's FY20 results and FY21 guidance.
So I view Mark Creasy's 31% of GAL as just some optionality should they hit something big, rather than a ringing endorsement that they are one of the best opportunities out there. It's a relatively small investment for Creasy when you look at his other positions. I see the better risk/reward trade-off to be in Legend (LEG), so that's my speccy play in the Fraser Range, and IGO have exploration JVs with heaps of people, plus they are current producers already, and profitable, and pay dividends (not big ones, but still dividends), AND their main commodity is nickel, which is my favourite battery metal, so I hold IGO.
7th July 2020: Latest "Quick Comment" (client update) from Jon Bishop at Euroz regarding LEG
Euroz still have a "Speculative Buy" call on Legend Mining (LEG) and a 30 cps PT. LEG closed at 14 cps today (10th July). I have a small position in LEG once more (bought earlier this week), which I will likely sell when they next pop on further positive drilling results. Very speculative (high risk). Not investment grade.
10-July-2020: Quarterly Activities Report and Quarterly Cashflow Report
I do trade in and out of LEG. I bought back in (small position) earlier this week. I tend to take profits when they pop on positive drilling results and associated sentiment improvement.
Saturday 6th June 2020: The West Australian Newspaper: "A simple Legend gaining in market appreciation".
03-June-2020: Share Cafe Webinar with Mark Wilson, CEO, Legend Mining (LEG)
If that link does not work, you may be able to access that Webinar via the ASX announcement link - click here for that. LEG have just raised $20m at 14 cps via a placement. Ordinary retail shareholders were not able to participate. I don't currently hold any LEG, but I do occasionally trade them.
02-Jun-2020: Legend Mining Presentation June 2020
LEG are raising capital on the back of recent positive drilling results, hence the company presentation (link above). Their latest drilling results were released last Tuesday (26-May-2020) - see here: 30m of Massive Sulphides in RKDD017 & RKDD013 Assays, Mawson. I sold out of LEG at 16.5 cps on May 21st, after selling the majority of my position back on May 1st at 19.5 cps, having bought them on April 1st at 11.5 cps. They're now back at 15 cps. Highly speculative, as they are explorers, not producers, and have no income except from capital raisings. I tend to trade these explorer stocks, buying relatively early as the hype is building, and then taking profits and hopefully selling out before the inevitable capital raising (CR), as I have done here (probably more due to luck than skill).
If a company is investment grade (which LEG clearly is not) then you might want to participate in a capital raising, if that CR is indeed extended to ordinary retail investors (which they often are not, particularly with smaller companies who often go for the cheaper option of placements). However, with these speccy metals/minerals explorers, I would prefer not to be caught in the stock when they decide to do a CR because I usually don't want to participate (particularly as it's often very hard to put an accurate "valuation" around such companies to work out if the CR price is fair or reasonable), and because they almost always result in dillution and/or a share price slump. The exception is if they come out with excellent news during or just after the CR period, such as further exciting drilling results. But my view is that the company's management are probably in the best position to work out whether they are likely to have really good news coming soon, and if so, why would they not wait and raise money AFTER the news is out there and the share price is even higher?
So, to summarise, I find that these CR's are generally opportunistic, particularly with companies who have no income and have to raise capital regularly to keep going. With such companies, plenty of practise usually means that they get pretty good at judging when to raise capital and it's not always at an opportune time for ordinary shareholders. So I generally steer clear of them. In the cases where I have got involved, the share price was usually lower a month later and I could have bought them cheaper on-market, so participating in (or holding through) the CR turned out to be a mistake in almost every case.
So, I'm happy to be out of LEG during this CR, and happy to have already banked my profits.
If Legend (LEG) hit some really SERIOUS mineralisation later, such as something similar to what the aptly named Sirius Resources discovered a few years ago (they found the Nova-Bollinger system and were then acquired by IGO at a MASSIVE premium), then I'd likely get on board and stay the course (until the inevitable takeover), but LEG are not there yet.
26-May-2020: 30m of Massive Sulphides in RKDD017 & RKDD013 Assays, Mawson
Excerpt: Legend Managing Director Mr Mark Wilson said: “The 19.8m intercept of massive sulphides makes hole 17 the best Mawson hole we have drilled to date. Holes 14, 15 and 16 have all intersected sulphides of varying widths and styles and add to the story.
“The assays received from the massive intercepts in hole 13 confirm ore grade mineralisation.
“These results add to those previously announced and indicate something big and close. We are excited by the challenge of finding it.”
Disclosure: I have sold out of LEG already, selling into the euphoria in Late April when they got as high as 19.5cps. Despite a +16.7% rise today on this latest news, that has only taken them back up to 17.5cps (as I type this - that will likely change). There are two ways to play these small explorers. You can hold on and hope that you've picked the one in one hundred that find something really good and multi-bag, or you can buy on positive news, when you know there's more news coming (good or bad, just news, such as drilling results), and then sell on the euphoria when the news is good. They will usually overshoot to the high side on good news, and there is usually a chance to get back in later if you want to - at lower levels. Sirius Resources was that one in one hundred company that found the motherload (Nova) and got taken out by IGO, and Legend Mining are drilling in the same area and looking for the same sort of deposit, but it doesn't mean they'll find it. If they DO, they're going a lot higher, but if they don't they obviously are not. Very risky. Highly speculative. However, they have experienced management and substantial backing from players with prior form in this field, so if you're going to have a punt, you could do worse. They have reasonable form. That said, I currently don't hold any LEG shares.
28-Apr-2020: Quarterly Activities Report and Quarterly Cashflow Report
22-Apr-2020: Euroz: LEG: Material Assays & Further Intercepts: Mawson Taking Shape
Euroz have raised their PT for LEG from 20 cps to 30 cps. ("Speculative Buy" call)
22-Apr-2020: Massive Ni-Cu Sulphides intersected in RKDD011 at Mawson
Excerpt: Legend MD, Mark Wilson, said: “We have drilled three further holes since we first reported to market on hole 8 on 31 March 2020, holes 9, 10 and 11. Hole 11, which was drilled 20m north of hole 8, has hit 12.4m of massive nickel-copper sulphides within a 21.6m mineralised intercept and is an outstanding result. The process we will follow is as per hole 8, with structural logging before the samples are sent for assay and downhole EM happening as we speak. The assay results should be available in 3-4 weeks and are eagerly awaited. Our expectation is they will be every bit as good as those reported on 21 April 2020 from hole 8. Meanwhile the rig has moved onto hole 12 and we have several further holes ready to go prior to our analysis of the hole 11 data providing the next step out drill target.”
--- click on link above for more --- [I hold a smallish parcel of LEG shares]
21-Apr-2020: First Assay Results From Diamond Drillhole RKDD008 at Mawson
Excerpt: Legend MD Mark Wilson said: “The results and photos from the sulphide zones in hole 8 confirms economic grades of nickel-copper-cobalt. In simple terms this is paydirt. This announcement will not lift Legend’s current trading halt as we are preparing an Exploration Update which will detail the results from the next three diamond holes 9, 10 and 11. We expect the Exploration Update announcement to be released pre market on Wednesday 22 April 2020.”
--- click on link for more ---
20-April-2020: Well, this could be the one. Legend has called a trading halt pending their latest drilling results announcement and an exploration update on the Company’s Rockford Project in the Fraser Range. Their share price has more than tripled during the last month, from 5.7c to a close of 18.5c on Friday. Is this another Sirius Resources? Have they found another Nova? The management seem to think so - see my "interview" straw for LEG. I bought some at 11.5c on April 1st, and also added them to my Strawman.com scorecard on the same day at the same price (their closing price that day). I'm up +60.87% on them in 3 weeks. When they emerge from this trading halt, they are likely to either crash or soar, depending on whether the drilling results have lived up to the hype or not. Adds some excitement to my life...
Before the trading halt that LEG called for prior to trading on Friday (27-Mar-2020), their SP was 6.7 cps. They closed up +56.72% yesterday at $0.105. So - have they found another "Nova"? Creasy has done this before. He is one of Australia's most succesful prospectors / geologists. And he owns 26.8% of Legend Mining (LEG). IGO (who own and operate the nearby Nova Ni-Cu-Co mine) own 14.2% of LEG. Legend's MD, Mark Wilson, owns around 8.3% of the company. I used to own some, but don't currently. I'm now following them again however. I did very well out of Sirius Resources, which was taken over by IGO back in the day (to get hold of the Nova-Bollinger mineralised system).
Additional update: I've just bought a small amount of LEG at 11.5 cps, and have placed a trade on Strawman.com to add a very small position to my scorecard as well. I will add to these positions as the Mawson discovery firms up (if it does).
18 October 2019: Legend Mining Ltd (LEG $0.048) Speculative Buy – Initiation of Coverage, from Jon Bishop at Euroz Securities.
Jon's PT for LEG is 8c/share, implying there is around +82% upside from yesterday's closing price of 4.4c/share.
Fraser Focused Nickel Sulphide Explorer
Key points
- We like the Nickel thematic: Growing battery demand at the margin adding fundamental supply-demand imbalances driven by traditional consumption but a lack of upstream discovery and development;
- This is further nuanced by economic bias towards Nickel Sulphide as the ore source for battery grade Nickel Sulphate;
- LEG represents a concentrated Nickel Sulphide exploration strategy, focused exclusively on the emerging Fraser Range belt;
- LEG is the second largest tenement holder with nearly 3,100km2 of ground;
- Mark Creasy and Independence Group NL (ASX:IGO) account for over 40% of LEGs register and are key JV partners in several of LEGs permits;
- Consequently, LEG benefits significantly from the respective in-house technical capabilities of IGO and Creasy Group;
- We unashamedly point to the SIR.ASX success story as evidence of exploration leverage for junior explorers; [SIR - Sirius Resources - discovered the world-class Nova-Bollinger mineralised system, IGO acquired SIR & IGO developed and now operate the Nova nickel mine]
- Regional discovery by either LEG or other active operators in the Fraser Range have the capacity to excite the market;
- There should be plenty of news flow with diamond drilling commencing immediately at Area D;
- Outside of a discovery at Area D, CY’20 should see additional diamond and RC drilling activity at each of Magnus, Octagonal, Crean, Shackleton and Worsely, each of which have identified mineralisation with first pass drilling;
- With $13m in cash and receivables plus a further $10m of options in the money, LEG is well funded for its current planned activities;
- We initiate with a Speculative Buy recommendation & $0.08/sh Price Target; and
- Scale of landholding in an emerging Ni Sulphide province is a key differentiator of LEG within their peer group.
Disclosure: I have held LEG in the past. Not a current holder. I have reduced my exposure to these high risk explorers recently. LEG could be one of the better ones, particularly with Mark Creasy's involvement, but they could also go to zero if they don't find anything with sufficient commercial value.
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