announcment

FIRST DRILLHOLE AT MT GIBSON INTERSECTS ZINC MINERALISATION
 30m zone with disseminated and banded sphalerite from 285m
 70cm interval containing massive sphalerite
Joint venture partner Oxiana Limited (ASX:OXR) has advised Legend Mining Limited
(“Legend”) (ASX:LEG) of the completion of the first diamond drillhole (MGB001) at the
Mt Gibson Project in Western Australia, see Figure 1. The drillhole intersected a broad
30m zone of disseminated and banded sphalerite (zinc sulphide mineral) from 285m
downhole, including a 70cm interval containing massive sphalerite.
Legend Managing Director Mr Mark Wilson said “The joint venture partners are
encouraged by this zone of mineralisation in what is the first hole in this programme.
The significance will not be fully understood until assays are received, the programme is
completed and all results are put into context with the geological model. However this
intercept is from a far shallower depth than previous mineralisation at the project”.
MGB001 is part of a 5 hole 3,000m drilling programme targeting volcanic hosted
massive sulphide mineralisation similar to that at Golden Grove located 100km to the
north.
Hole MGA94 East MGA94 North Dip Azi (Mag) Depth
MGB001 517030m 6711455m -60o 110o 462.8m
Oxiana technical staff have provided Legend with geological information from the
drillhole, which is summarised below.
“MGB001 intersected a 30m zone of disseminated and banded sphalerite from 285m,
associated with feldspar-phyric rhyodacitic units intercalated with a cordierite,
anthophyllite, amphibole, biotite and rare garnet altered basic unit. Mineralisation is
predominantly pyrite+sphalerite±pyrrhotite hosted exclusively in the rhyodacitic units,
with larger bands dominated by massive sphalerite.”
Mt Gibson JV
On 8 May 2007, Legend announced a Farm-In and Joint Venture Agreement with
Oxiana Exploration Pty Ltd, a wholly-owned subsidiary of Oxiana Limited, over the Mt
Gibson Project.
Under the terms of the agreement, Oxiana may earn a 75% interest in the project by
funding $10 million of exploration within 7 years, with Legend 25% free-carried to
completion of a bankable feasibility study and a decision to mine. Oxiana must spend
$1.2 million within the first 18 months before having a right to withdraw.