Perth, June 11, 2008 AEST (ABN Newswire) - Legend Mining Limited ("Legend") (ASX:LEG))(PINK: LGDMF) is pleased to advise that it has signed a letter agreement for the lease of its accommodation facilities and airstrip at the Mt Gibson Project in Western Australia to Extension Hill Pty Ltd for a period of 3 years. The lease period commences on 1 July 2008 and Legend will receive rental income of A$500,000 per annum.
The Legend/Oxiana Joint Venture has retained sufficient exclusive use facilities to conduct exploration activities at the Project.
Background
Legend currently hold interests in three Projects in WA, namely Gum Creek, Pilbara and Mt Gibson. Of these, Legend operates and is actively exploring the Gum Creek and Pilbara Projects, while Oxiana Limited (ASX:OXR) manages the Mt Gibson JV.
The Mt Gibson Project (zinc-copper-gold), located 290km northeast of Perth in the Murchison Province, was recently farmed-out to Oxiana, who operate the world class VHMS base metal mine at Golden Grove situated 100km to the north. Oxiana has committed to spend a minimum of $1.2M in the first 18 months and to spend $10M over a seven year period to earn a 75% interest in the Project.
The Gum Creek Project (nickel-copper-platinum group element) is located 640km northeast of Perth in the Yilgarn Province. It is considered prospective for both intrusion-related (Ni-Cu-PGE) and komatiite flow-related Ni-sulphide mineralisation.
The Pilbara Project (nickel-copper, zinc-copper) comprises 686km2 of 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.
Contact
Mr Mark Wilson
Managing Director
Ph: (08) 9212 0600
Mr Derek Waterfield
Exploration Manager
Ph: (08) 9212 0600
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