Resource World Magazine

32 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 5 MINING Legend Gold's projects strategically situated by Ellsworth Dickson In an interview, Michael Winn, newly appointed President and CEO of Legend Gold Corp. [LGN-TSXV], told Resource World that the company is staying the course with its business strategy of being a prospect generator. "Our strategy hasn't changed," said Winn. "Our focus will remain on West Africa, generating exploration ideas by acquir- ing companies, public and private, as well as attractive mineral properties." Legend conducts early-stage exploration to increase the project value to the point where it would be sold or joint ventured to mine development companies. The company has several gold projects in southwestern Mali where two of them, Diba and Lakanfla, are strategically located adjacent to the producing Sadiola gold mine of SEMOS, a joint venture among AngloGold Ashanti, operator, 41%, IAMGold, 41%, and the government of Mali, 18%. Sadiola has had about 7 million ounces of historical gold produced. Legend's Diba Project, its current main focus, is within 15 km of the Sadiola Mine and has a 307,700-ounce inferred and indi- cated oxide resource hosted in shallow-dipping orebodies with a potential low strip ratio. Legend recently completed the analysis of its gradient-array induced polarization survey at Lakanfla. The IP survey covered 37 km 2 and encompassed the Lakanfla and Tinntiba exploration permits. Based on a coincidence of structures intersecting grav- ity lows, six targets have been defined. Company geologists are of the view that earlier drill holes on these targets did not reach the target zone due to a thick laterite cover and sediments. At Lakanfla, there is a 1 km area of artisanal mining activity, adjacent to a major gravity low as well as known gold mineraliza- tion trending into the gravity lows that attest to the prospectivity of the property. The Lakanfla Project features carbonate-hosted, karst- enriched mineralization similar to the nearby producing Yatela gold mine (AngloGold Ashanti/IAMGold/gov't of Mali) that has had about 1.8 million ounces of historical gold production. Lakanfla is at an advanced stage with various exploration programs completed, including geochemical sampling, geophysical surveys and drilling. Other large gold deposits in the region include Loulo (15.5M oz), Segala and Tabakoto (2.7M oz). "We haven't decided what we want to do at Lakanfla yet," explained Winn. "It will be determined by what we do at the nearby Diba Project. SEMOS' Sadiola gold mine has about a year's worth of oxide resources remaining and as such, are considering whether to go underground on the sulphides." "We have updated the inferred resource with an in-house resource estimate at Diba, said Winn, "At Lakanfla, we have a small, in-house, oxide resource. We are of the view that the prox- imity of Diba and Lakanfla with their oxide ounces to the Sadiola Mine provides a very interesting asset we think SEMOS needs." He noted that there are other potential participants for Diba and Lakanfla. "If we feel that we are not making the progress on the transaction we will most likely finish an external resource at Diba in January," said Winn. Dr. Demetrius Pohl, VP Explorations, said, "The question is: do we want to spend the money on Diba to approve our numbers or generate a new set of numbers or, if we sell it to someone, should they do it?" Legend Gold is also involved with in a nearby joint venture under which Randgold Resources Ltd. [GOLD-NASDAQ; RRS- London] can earn a 51% interest by completing a prefeasibility study. Legend can participate at 49% or be diluted to 35% through completion of a feasibility study. Exploration to date has been encouraging. Legend Gold also holds the Tabakorole and Mougnina gold projects in southern Mali where joint venture partners are being sought. All of Legend's projects are located in areas that host operating gold mines and/or significant gold deposits. Dr. Pohl commented, "The civil strife that has occurred in Mali has not affected our operations at all; it was confined to the north- ern region. As well, the recent outbreak of Ebola has not affected us." Endeavour Mining owns about 15% of Legend Gold and one of their representatives is on the Legend board. Michael Winn and Dr. Pohl have worked together since the late 1990s. Their team has found over 50 million ounces of gold. "Considering the state of the junior mining market, I think there will be some excellent grassroots opportunities for us that we will identify," said Dr. Pohl. Legend Gold has 77,158,173 shares outstanding fully diluted. n Split diamond drill core displaying gold mineralization from the Diba Project in southwestern Mali, West Africa. Photo courtesy Legend Gold Corp.

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