Legacy Iron Ore : Mt Bevan update

An NMDC Company

About Legacy Iron Ore

Legacy Iron Ore Limited ("Legacy Iron" or the "Company") is a Western Australian based Company, focused on iron ore, base metals, tungsten and gold development and mineral discovery.

Legacy Iron'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 Iron has had a number of iron ore, manganese and gold discoveries which are now undergoing drilling and resource definition.

Board

1. Baijendra Kumar, Non-ExecutiveChairman
   Amitava Mukherjee, Non-Executive Director Alok Kumar Mehta, Non-Executive Director
   Devanathan Ramachandran, Non- Executive Director
   Rakesh Gupta, Director and Chief Executive Officer

Ben Donovan, Company Secretary

Key Projects

Mt Bevan Iron Ore Project

South Laverton Gold Project

East Kimberley Gold, Base Metals and REE

Project

Enquiries

Rakesh Gupta

Chief Executive Officer

Phone: [phone]

ASX Codes: LCY

LEVEL 2

1-5 HAVELOCK STREET WEST PERTH WA 6005

PO BOX 5768

ST GEORGES TERRACE WA 6831

Phone: [phone]

Fax: [phone]

Email: [e-mail]

Web: www.legacyiron.com.au

ASX Announcement

15 Oct 2019

ASX Market Announcements

ASX Limited

Via E Lodgement

MT BEVAN PROJECT UPDATE

Legacy Iron Ore Limited (Legacy Iron or the Company) is pleased provide the following update on its nickel exploration program at the Mt Bevan Project (Figure 1).

The Mt Bevan Project (Legacy Iron 60%, Hawthorn Resources Limited

40%) is located immediately south of St George Mining Limited's (ASX: SGQ) Mt Alexander Project. St George Mining has had significant success identifying nickel-copper sulphide mineralisation at Cathedrals, Stricklands and Investigators along the Cathedrals Shear zone (refer to St George Mining Limited ASX announcements).

Figure 1 Mt Bevan Project - airborne magnetics data (TMI) showing area of interest for nickel sulphide mineralisation

In the recent past, following an initial prospectivity assessment, the Company completed both ground geophysics and auger geochemistry in the northernmost part of the tenement and delineated numerous early-stage nickel sulphide mineralisation targets for drill testing (refer ASX announcement on 30/04/2018).

In total of nine early stage targets/anomalies were identified using integrated analysis of ground magnetics, structural interpretations, Moving Loop Electromagnetic (MLEM) data and auger geochemical sampling (refer ASX announcement dated 26 June and 31 July 2019).

This area is almost completely concealed by Quaternary alluvium and colluvium cover.

During this recent round of the RC drilling, the five early stage targets, located in northern most areas were tested to see if these targets can further be upgraded as part of ongoing exploration for nickel mineralisation at the Mt Bevan project (Figure 1).

In total 1,034m of RC drilling was completed in 13 drill holes (Figure 2 and 3). Visual logging and geochemical analysis (appendix 1 and 3) confirmed the presence mafic rocks with traces of sulphides in three of the drill holes (MBC1114, MBC1120 and MBC 1125). In total 118 samples from the selected intervals (1m interval) were analysed at Bureau Veritas Lab (BV) and nine of the holes were also surveyed by downhole EM.

Figure 2 Merged ground and regional TMI magnetics with structural interpretations

Figure 3 Auger geochemistry (Ni ppm) and MLEM Slingram CH25 with structural interpretation lines

Assay results (done for only mafic intervals) for the program does not show any significant/anomalous nickel-copper values (highest Ni value:439 ppm - refer Appendix -3).

Down Hole EM:

In total nine drill holes were surveyed using the down hole EM (Figure 4). Newexco Exploration Pty Ltd was engaged for supervising data collection and interpretation for down hole EM data (DHEM).

The DHEM surveys were carried out using a DigiAtlantis (B-field) system operating at 150amps into a 200x200m loop. The data quality is good considering vertical/near verticle holes and resistive rocks. However, some of the readings were quite noisy particularly on the radial (Bu and Bv) component particularly for the vertical holes (due to probe movements (rotating) in vertical holes that makes noisy data). The downhole survey (Dip and Azimuth) data was calculated for each hole using local magnetic inclination and declination. All the holes were processed with downhole survey calculated from the magnetics. The DHEM data from the sub-vertical holes MBC1114, MBC1116, MBC1118, MBC1119 and MBC1121 were rotated with the magnetic field (Magnetic Inc: -62.244 and Magnetic Dec:0.853). Two of the drill holes MBC1120 and MBC1125 were blocked at depth of 26m and 28m respectively hence no DHEM survey was completed.

Figure 4: Plan view shows the drillholes and DHEM loops (blue squares).

A strong response was observed on the top section (0m to 20m) of all holes surveyed. This strong response is interpreted to be caused by the transmitter loop.

The review of the DHEM data shows no strong EM conductors however, a weak and high frequency response observed at a downhole depth of 40m on the Bv component in Hole MBC1122 and at 45 and 70m in MBC 1114, see Figure 5 and 7. The company plans to further investigate these two anomalous responses by carrying additional drill holes to the south (figure 3).

Also, several other weak, secondary responses (weak inflection) were observed at downhole depths of 75m (MBC1124), 70m (MBC1119) and 80m (MBC1122), (Figure 6- which possibly show some examples of these secondary responses). These weak secondary responses are associated with the high magnetic response measured by the DHEM probe and interpreted to be caused by the magnetic material intersected in the hole and/or geological noise such as contact/shear zones.

Figure 5: MBC1122 DHEM linear profiles of CH12 to 33 (1ms to 101ms).