Legacy Iron Ore Limited ASX Market Announcements ASX Limited Via E Lodgement MT CELIA GOLD PROJECT UPDATE Legacy is pleased to provide an update on the Mt Celia Gold Project (“Mt Celia”), located south of Laverton, WA. This update includes the results of: ? Recent RC drilling at the Blue Peter resource and ? Preliminary modelling and pit optimisation study conducted for the Kangaroo Bore resource. The Mt Celia Project lies within the Laverton Tectonic Zone some 40km south of the Sunrise Dam gold mine (12Moz gold resource), as shown in Figure 1. Figure 1: Location of the Mt Celia Project within the Laverton Tectonic Zone ASX Announcement 20 April 2012 About Legacy Iron Ore Legacy Iron Ore Limited (“Legacy” or the “Company”) is a Western Australian based Exploration Company, focused on iron ore and gold exploration and discovery. Legacy’s mission is to increase shareholder wealth through capital growth, created via the discovery, development and operation of profitable mining assets. The Company was listed on the Australian Securities Exchange on 8 July 2008. Since then, Legacy has had a number of iron ore, manganese and gold discoveries which are now undergoing drilling and resource definition. Board Narendra Kumar Nanda, Non-Executive Chairman Sharon Heng, Executive Director & Managing Director Swaminathan Thiagarajan, Non- Executive Director Subimal Bose, Non-Executive Director Timothy Turner, Non-Executive Director Ben Donovan, Company Secretary Key Projects Mt Bevan Iron Ore Project Hamersley Iron Ore Project Robertson Range Iron Ore and Manganese Project South Laverton Gold Project East Kimberley Gold, Base Metals and REE Project Enquiries Sharon Heng Managing Director Phone: +61 8 9421 2005 ASX Codes: LCY, LCYOA, LCYOB LEVEL 5, CITIBANK HOUSE 37 ST GEORGES TERRACE PERTH WA 6000 PO BOX 5768 ST GEORGES TERRACE WA 6831 Phone: +61 8 9421 2005 Fax: +61 8 9421 2001 Email: [email protected] Web: www.legacyiron.com.au Legacy Iron Ore Limited ASX Announcement 20 April 2012 The Mt Celia Project contains two JORC compliant gold resources. These are at Kangaroo Bore - Inferred resource of 46,000oz gold (1.04Mt @ 1.4g/t gold using a 0.7g/t cut-off), and Blue Peter – Inferred resource of 30,554oz gold (239,232t @ 3.97g/t gold using a 1.0g/t cut-off). 1. BLUE PETER - DRILL RESULTS Legacy has targeted the gold potential of the Blue Peter shear containing several small historic gold workings (Figure 2). The shear system extends over a distance of at least 2 kilometres, and consists of single, parallel or en echelon quartz filled shears within mafic and lesser ultramafic lithologies, that flank an eastern granitoid. This geometry coupled with the widespread gold dry blowing is favourable for a bulk tonnage gold potential for the system. Figure 2: Mt Celia Project. Aerial image showing the main Kangaroo Bore and Blue Peter prospects Previous drilling by Legacy resulted in a substantial number of high grade gold intersections (refer to ASX announcement of 15 December 2010) – summarized in Table 1 below. Figure 3 shows the previously reported drill section through the Blue Peter Lode system. Drill hole From – To Intersections BPC 069 74 – 80m 6m @ 4.09 g/t gold BPC 041 54 – 60m 6m @ 3.99 g/t gold BPC 056 28 – 32m 4m @ 4.54 g/t gold BPC 071 90 – 94m 4m @ 4.10 g/t gold BPC 072 84 – 88m 4m @ 3.71 g/t gold Legacy Iron Ore Limited ASX Announcement 20 April 2012 BPC 072 94 – 100m 6m @3.15 g/t gold BPC 067 72 – 76m 4m @ 3.38 g/t gold BPC 042 56 – 64 8m @ 2.32 g/t gold BPC 01 28 – 31m 3m @ 21.71 g/t gold including 1m @ 62.75 g/t gold BPC 011 56 – 60m 4m @ 12.11 g/t gold including 2m @ 19.67 g/t gold BPC 010 33 – 38m 5m @ 8.26 g/t gold BPC 026 25 – 28m 3m @ 11.1 g/t gold BPC 027 47 – 49m 2m @ 17.12 g/t gold BPC 029 47 - 51m 4m @ 7.01 g/t gold BPC 002 23 – 30m 7m @ 3.46 g/t gold BPC 028 24 - 28m 4m @ 4.23 g/t gold BPC 035 22 – 25m 3m @ 4.82 g/t gold BPC 012 31 – 34m 3m @ 4.65 g/t gold Table 1: Blue Peter Prospect – Selected Drill Intersections Legacy Iron Ore Limited ASX Announcement 20 April 2012 Figure 3: Drill Section 6740690N Assay results for a 6 hole, 1200m RC drilling program at Blue Peter have now been received. This drilling program was designed to test below the relatively shallow (to 80m) depths of prior drilling. Significant results are provided in Table 2 below. Table 2 Drillhole North (m) East (m) Azimuth From (m) To (m) Gold g/t Width # degrees BPC086 6740219 452096 215 142 143 1.81 143 144 5.84 6 meters at 4.22 144 145 8.03 145 146 7.06 146 147 1.31 147 148 1.27 BPC090 6741030 451428 215 201 202 8.64 202 203 1.08 3 meters at 4.72 203 204 4.44 # The true width of intersections is estimated to vary between 60 – 75% of the drilling intersections noted above Legacy Iron Ore Limited ASX Announcement 20 April 2012 Drilling showed continuity of significant gold mineralisation to depths of circa 150m on several sections - as shown in Figure 4. Some drill holes did not intersect significant mineralisation down dip of previous high grade intersections. This is likely due to the high grade mineralisation taking the form of steeply plunging narrow high grade shoots that are difficult to intersect in relatively broadly spaced drilling. A revised resource calculation for Blue Peter will now be made inclusive of this drilling. Figure 4 Drill sections incorporating recent drilling 2. KANGAROO BORE RESOURCE – MODELLING AND PIT OPTIMISATION STUDY Modelling and a preliminary pit optimisation study for the Kangaroo Bore gold resource was conducted by Xstract Mining Consultants. This was done to provide an initial commercial assessment of the resource and its sensitivities and to provide a guide to the positioning of further drilling. Several pit shells were generated for different metal prices and pit slope angles using industry standard parameters for mining, processing costs etc. The pit optimisation is particularly sensitive to gold price and pit slope angles. Table 3 below is a summary of this preliminary pit optimisation in relation to gold price. Legacy Iron Ore Limited ASX Announcement 20 April 2012 Table 3 Profit comparisons for different gold prices* (*pit shell only – does not take into account dilution, ore loss from mining, and a practical pit design that includes ramps etc) The base case pit optimization indicates that maximum ore tonnes that can be extracted are approximately 400,000t with a 3.7 stripping ratio and an average grade of 1.54g/t gold. This optimization was done using a conservative 45 degree pit slope angle. Optimising at a 65 degree pit slope angle produces a near doubling of profit to $15M using the same operational parameters. Several areas were highlighted as having potential to increase the mineable resource with deeper drilling, and this will form part of the continuing exploration at Mt Celia to increase known resources and test numerous other gold targets on the tenements Yours faithfully, LEGACY IRON ORE LIMITED Sharon Heng Managing Director END Competent Person’s Statement: The information in this report that relates to Exploration Results, Exploration Targets, Mineral Resources or Ore Reserves is based on information compiled by Steve Shelton who is a member of The Australasian Institute of Geoscientists and a full time employee of Legacy Iron Ore Limited. Mr. Shelton has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves“. Mr. Shelton consents to the inclusion in this report of the matters based on his information in the form and the context in which it appears.
LCY Price at posting:
13.0¢ Sentiment: Hold Disclosure: Held
