News: Legacy Iron Ore granted drilling approval for Mt Bevan

Legacy Iron Ore (ASX:LCY) has been granted approval to conduct drilling on a number of DSO iron ore targets within the Mt Bevan project area in Western Australia.

A 1,600 metre reverse circulation drilling program will begin next week.

This will target the Mt Mason North prospect where earlier drilling made thick intersections of DSO hematite, and DSO targets outlined by recent surface rock chip sampling.

Mt Mason North adjoins Jupiter Mines' Mt Mason resource of Measured and Indicated 9.4 million tonnes at 57.6% iron.

Most prior drilling has focussed on the Western BIF where a major magnetite resource was defined over a 10 kilometre strike length.

A number of high iron assays were received from the surface sampling programs conducted earlier in the year, and results of the drilling program should be available by the end of the current quarter.

Legacy Iron holds a 60% share of the Mount Bevan Joint Venture, with Hawthorn Resources (ASX:HAW) holding the remaining 40%.

Legacy is currently in the process of raising $25 million via a 3 for 1 entitlement issue priced at $0.014 per share.

Major shareholder, India's National Mineral Development Corporation, has confirmed it will take up its full entitlement of a minimum $12.1 million worth of new Legacy shares.

Repayment of a $3 million Citibank loan is envisaged out of funds raised as well as use in other key portfolio projects.

Legacy is currently capped at $9 million.

 

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