Embracing the cyclical nature of the mining sector
LGN Holdings (BVI) Inc.
Standalone asset or potential oxide feed for Sadiola
NI 43-101 resource
Ind: 0.27Moz @ 1.35g/t & Inf: 0.03Moz @ 1.4 g/t
Next Phase of Work:
Update NI 43-101 resource
Joint Venture Partner:
The 83km2 Korali Sud licence contains the Diba prospect and is located in the Kayes region of western Mali, approximately 450km northwest of the capital Bamako. The licence is held by the Company's 100% owned subsidiary LGN Holdings (BVI) Ltd (“Legend”). Diba is situated approximately 13km southwest of the 13Moz Sadiola gold mine, which is operated jointly by AngloGold Ashanti (JSE: ANG, NYSE: AU, ASX: AGG), IAMgold (TSX: IMG, NYSE: IAG) and the Malian government. Sadiola lies on the Senegal-Malian shear corridor within the world renowned ‘Kenieba window’.
The project hosts an historic resource (based on a 0.5 g/t cut off and gold price of US$1,200/oz of 275,000oz being 6.34 million tonnes at 1.35 g/t) in the Indicated category and 32,500oz (0.72 million tonnes at 1.40 g/t) in the Inferred category. The resource was prepared by AMEC Americas Limited in the report entitled “Technical Report and Mineral Resource Estimate Diba Badiazila Gold Property Mali, West Africa”, dated June 30, 2013 (Table 1) and filed on SEDAR on 20 September 2013 by Legend Gold Corp. The resource comprises stacked lenses which dip approximately dip 35-40 degrees ESE within the oxide zone.
Previously reported drill results from the Diba prospect (Table 2) include 12m @ 20.66g/t Au and 32m @ 2.06g/t Au. Given Diba’s morphology, the project has a potentially low mining strip ratio with relatively limited overburden and a high proportion of the potential ore is in the oxide zone. Deeper drilling at Diba targeting the sulphide zone has intersected 1.32 g/t over 45m (from 93m). The sulphide zone remains open at depth. The Company has not verified the historic drilling data at the Diba project.
Notes: Intersections greater than 0.5 g/t Au cut-off grade. (<5m internal waste). *16.0m internal waste.
A regional soil sampling programme completed by previous owners of the project on a 500m x 250m (and in places 250m x 100m) grid identified a number of gold in soil anomalies at the Diba project. This programme was completed between 2005 and 2007 and along with subsequent auger programmes, defined a 2.5km x 0.5km anomaly at Diba. Ground induced polarisation (IP), high resolution resistivity, induced polarisation (HIRIP) and ground magnetics surveys were completed by Terra Tec Mali Sarl between 2006 and 2007 and covered 116 line-km. A follow up 3,543 line-km regional airborne VTEM survey was completed by Geotech Airborne Limited in 2008. Approximately 32,000m of diamond, RC and RAB drilling was reportedly completed by previous licence holders, which included Endeavour Mining Corporation.
Oxide gold mineralisation at Diba is predominantly found in saprolite which is within 50m of surface, across a compact 300m x 400m area drilled to date. The deposit is controlled by a number of NW and NE orientated structures with gold occurring as fine grained disseminations and localised high grade calcite-quartz veinlets. Alteration at Diba is typically albite-hematite+/-pyrite, although pyrite content is generally very low (<1%). The next phase of work at Diba will involve termite mound sampling to define additional prospects for follow up trenching and re-logging of selected drill core to better define the oxide zone.