17/11/2008 - 10:52

OZ Minerals ends JV with Legend Mining

17/11/2008 - 10:52

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OZ Minerals has advised its joint venture partner, Legend Mining that it will not proceed any further with the proposed project at Mount Gibson.

OZ Minerals has advised its joint venture partner, Legend Mining that it will not proceed any further with the proposed project at Mount Gibson.

Following an outlay of $1.2 million for geological and diamond drilling activities, 100 per cent ownership of the gold mine, which operated for 12 years from 1986, will revert back to West Perth-based Legend Mining.

 

 

Full announcement below:

 

MT GIBSON JV CONCLUDES
 $1.2 Mspent on project assessment
 Legend regains 100% ownership/management of Mt Gibson Project.


Oz Minerals Limited (ASX:OZL) has advised Legend Mining Limited ("Legend")
(ASX:LEG) of it's decision to not proceed further with the Mt Gibson JV. Oz Minerals
met the first phase, minimum expenditure requirement of $1.2M through
geological/geochemical activities and a diamond drilling programme of approximately
3,000m.
"We have appreciated the professionalism displayed by the Oz Minerals exploration
team over the last 18 months and understand the reasoning for its decision," commented
Legend Managing Director, Mr Mark Wilson. "Both parties to the joint venture
contemplated the possibility of this outcome when drafting the joint venture agreement,"
he added. "The drilling completed by Oz Minerals has provided valuable information in
defining the prospective "zinc horizon" which can be used in planning any future
activities. This work has also confirmed the geological model originally proposed by
Legend."
Legend will now re-assess its considerable database pertaining to volcanic hosted
massive sulphide zinc-copper and gold mineralisation at Mt Gibson.
Systematic analysis of the structural and lithological controls on the existing gold
deposits will also be completed with the aim of identifying additional resources.

Legend currently holds interests in three Projects in WA, namely Mt Gibson, Pilbara and
Gum Creek. Of these, Legend is actively exploring the Gum Creek and Pilbara Projects.
The Mt Gibson Project (zinc-copper-gold) is located 290km northeast of Perth in the
Murchison Province. Mt Gibson operated for 12 years as a gold mine from 1986
following the discovery of gold in surface laterite. The operation produced 870,000
ounces of gold from 16.5Mt of ore at an average grade of 1.68g/t. Legend, through a
study conducted in 2006 by Dr S Carras of Carras Mining Pty Ltd, estimated the
residual gold Mineral Resource (Indicated and Inferred) to be 8.7Mt at 1.98g/t gold for
559,000 ounces (see 2006 Legend Annual Report).
The Pilbara Project (nickel-copper, zinc-copper) comprises 686km2of tenure in the West
Pilbara, all within 50km of Karratha. Legend and Fox Resources Limited (ASX:FXR)
independently control a dominant portion of this emerging and exciting base metal
district. Legend has identified eleven priority base metal drill targets and confirmed
17.5km of the Cleaverville Formation as having potential for iron ore.

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