Legend Gold Corp.
TSX VENTURE : LGN

Legend Gold Corp.

August 17, 2011 06:40 ET

Legend Gold Extends Zones 1 & 2 at Lakanfla-Encouraging Results Prompt New Drill Program Legend

TORONTO, ONTARIO--(Marketwire - Aug. 17, 2011) - Gold Corp. (the "Company" or "Legend Gold") (TSX VENTURE:LGN) is pleased to announce results from the reverse circulation drill ("RC") program at our Lakanfla gold project ("Lakanfla") in western Mali. These are very encouraging results from the extension drilling at Zones 1 & 2. (http://media3.marketwire.com/docs/LGNMAP.pdf) New gold intercepts from the wide ranging exploration portion of our drill program also require immediate follow-up drilling. The new program is designed to commence infill drilling at Zones 1 & 2 with a diamond drill as soon as possible. RC drilling will also commence to follow-up on recent exploration results reported below.

At Zone 1, high-grade gold mineralization occurs within a 600 metre by 50 metre northeast trending area of closely spaced artisanal workings with gold in soil anomalies up to 661 ppb and termite mound anomalies up to 2,086 ppb. Mineralization is oxidized from surface down to 90 metres and described from rock chips as silicified zones within metapelite; however no diamond drill holes have been completed in Zone 1. Zone 1 is open on strike to the north and south.

Legend Gold plans an infill diamond drill program at Zone 1 to commence in Fall 2011.

Results from the first 19 holes of the drill program were reported in a press release dated June 14, 2011.

Highlights of the June 14 release included Intersections:

  • 7 metres of 9.53 gpt Au from Hole 11LKFRC-005 in Zone 1 (section 8,400 north)
  • Including 2 metres of 32.58 gpt Au
  • Intersection of 3 metres of 2.98 gpt in Hole 11LKFRC-006 in Zone 1 (section 8,400 north)

Zone 2 is contained within in the margins of a silicified granitoid pluton which has a diameter of approximately 2 kilometres. Gold is associated with quartz and disseminated pyrite and arsenopyrite. The gold mineralization trends northeast, parallel to the long axis of the altered granite.

At Zone 2, drilling has been successful at extending gold mineralization along strike from 250 metres up to 2.25 kilometres of strike length:

  • 1 kilometre south of Zone 2, drill hole 11LKFRC-103 intersected 2 metres of 3.15 gpt Au within a broader alteration zone grading 8 metres of 0.67 gpt Au, Drill hole 11LKFRC-104 intersected 4 metres of 1.51 gpt Au
  • 500 metres north of Zone 2, drill hole 11 LKFRC-076 intersected 4 metres of 2.61 gpt Au within a zone of alteration grading 14 metres of 0.51 gpt Au

Drilling has also increased the known width of mineralization from 50 metres up to 250 metres:

  • East of previous drilling at Zone 2, step-out hole 11LKFRC-022 intersected 2 metres of 3.18 gpt Au and 4 metres of 1.68 gpt Au within broader alteration of 28 metres of 0.62 gpt Au

Elsewhere on the Lakanfla property, drill holes 11LKFRC-072 & 11LKFRC-073 located 500 metres northeast of Zone 2 intersected 4 metres of 1.37 gpt Au and 2 metres of 2.15 gpt Au respectively. Drill hole 11LKFRC-052 intersected 2 metres of 4.29 gpt Au including 1 metre of 8.21 gpt Au and in 11LKFRC-061 drilling intersected 2 metres of 2.07 gpt Au within a broad, deeply weathered alteration zone that extends northeast for over 1 kilometer and includes Legend's Zone 3 gold occurrence.

Scott Waldie, Legend Gold's President and CEO, said, "This drill program successfully tested the near-surface continuity of previously discovered zones 1 and 2 and identified four other significant bedrock gold occurrences coincident with geochemical anomalies at Lakanfla. Lakanfla is located adjacent to the Sadiola Gold Mine ("Sadiola" owned by AngloGold Ashanti, IAMGOLD, and SEMOS). We are very keen to resume drilling at Lakanfla. Zone 1 has good potential for the development of high grade oxide tonnage adjacent to the larger and more extensive lower grade mineralization at Zone 2. Artisanal miners are present and very active south of Zone 1 giving us confidence that Zone 1 may be traced further south than we presently understand. Sadiola's FE series of satellite pits appear to occur as a series, or cluster, of mineralized bodies. It appears that similar circumstance may be present at Lakanfla and closer spaced drilling will now be required to outline the gold mineralization, particularly at Zone 1."

TABLE 1: Significant Assay Results – "Lakanfla" – 0.2 gram per tonne cut-off (Note 1)
Reverse Circulation Drilling
HOLE NUMBER FROM
(m)
TO
(m)
LENGTH
(m)
GOLD ASSAY
(grams per tonne)
11LKFRC-022 6.0 34.0 28.0 0.62
includes 10.0 12.0 2.0 3.18
28.0 32.0 4.0 1.68
11LKFRC-052 35.0 37.0 2.0 4.29
includes 35.0 36.0 1.0 8.21
11LKFRC-061 10.0 12.0 2.0 2.07
11LKFRC-072 28.0 32.0 4.0 1.37
11LKFRC-073 64.0 74.0 10.0 0.40
includes 64.0 66.0 2.0 2.15
11LKFRC-076 0.0 14.0 14.0 0.51
includes 10.0 14.0 4.0 2.61
11LKFRC-103 72.0 80.0 8.0 0.67
includes 74.0 76.0 2.0 3.15
11LKFRC-104 64.0 68.0 4.0 1.51

Note 1: Intersections are calculated down the drill holes using a 0.2 gram per tonne (gpt) or 200 part per billion (ppb) assay cut-off and allowing a maximum of 2 metres of internal waste. Assays immediately following the internal waste must carry the waste interval to be included in a particular intersection. "Includes" is calculated using a 1.0 gpt or 1000 ppb assay cut-off with the same internal waste criteria. 0.2 gpt or 200 ppb was chosen as a cut-off to show the wide continuity of the mineralization and to reflect the potential bulk mining of the entire zone. All drill hole inclinations are -60 degrees and true width of the mineralization is 50%-75% of the reported drill intercept depending on the drill angle. All gold intersections do not include a "top cut" on high grade values.

QA/QC Program

To ensure reliable sample results Legend Gold has a rigorous QA/QC program in place that monitors the chain-of-custody of samples and includes the insertion of blanks, duplicates, and certified reference standards in each batch of samples. RC chips are logged and a representative sample is retained in a secured facility for verification purposes. DDH core is logged, photographed and sawn in half where one half of the core is submitted for analysis and the other half retained as a representative sample in a secured facility for verification purposes. Sample preparation (crushing and pulverizing) is performed at an independent local laboratory. Prepared samples are direct-shipped to a local independent laboratory; SGS in Kayes, Mali (for analysis using a FA50-AAS (Fire Assay on 50 gram sample with an Atomic Absorption finish).

Qualified Person

This news release has been reviewed and verified by H. Andrew Daniels, P. Geo, a Qualified Person as defined by National Instrument 43-101. Mr. Daniels has over 25 years of mineral exploration and mining experience, is a Licensed Professional Geologist in the Province of Ontario and a member in good standing.

About The Company

Legend Gold is a mineral exploration and development company focused on exploring for gold in the Republic Of Mali, West Africa. Our four main projects are the Tiekoumala, Lakanfla, Diokeba, and Dalakan projects. In recent years, we have made significant gold discoveries on the Tiekoumala project located in Southern Mali, and the Lakanfla project located in Western Mali. Legend Gold has 65,168,824 common shares issued and outstanding (84,630,011 shares on a fully diluted basis). Please visit our website www.legendgold.com to for more information about our projects.

This news release may contain forward‐looking statements that are based Legend Gold Corp's expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward‐looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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