Legend Mining (ASX:LEG) has signed a binding term sheet to acquire the gold and base metals project, Pinnacle Well in the Lenora district of Western Australia.
The Pinnacle Well Project, covering 110km2, lies 25km north-northeast of Leonora in the northern Goldfields region — which hosts numerous gold deposits including Gwalia, Tarmoola, King of the Hills, along with base metals deposits at Teutonic Bore/Bentley/Jaguar.
Under the term sheet, Legend Mining will pay $50,000 cash to the project vendor. The vendor will also be granted a 1.5% gross royalty on the production of any minerals from the tenements.
The transaction is expected to be completed next month.
Legend, which has a market capitalisation of $17.46 million, says the project is considered prospective for intrusive related and structurally controlled vein-hosted gold mineralisation.
The company intends to complete historical data compilation and validation work, as well as establish a project database. Upon completion, Legend will reprocess regional aeromagnetic, radiometric and gravity datasets to support structural interpretation.
Legend will also conduct geostatistical analysis of existing soil sample data to define milti-element anomalies, as well as conduct an infill soil sampling program to better define anomalies and obtain fill sample coverage over E37/1548.
Legend Mining is an Australian explorer focused on nickel and copper discoveries in the Fraser Range of Western Australia, as well as gold and base metals in the Leonora district.
Write to Aaliyah Rogan at Mining.com.au
Images: Legend Mining
