28 Jul 2011

LCY Chart 28/7/2011

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HIGHLIGHTS
EXPLORATION
 Focus on Mt Bevan Iron Ore Project.
 First phase RC drilling completed.
 Maiden JORC compliant Inferred Resource of 617 Mt at 32.1% Fe - covers only 40% of strike of first iron ore target.
Overall Exploration Target for magnetite revised to 1.5 – 2.0 Bt grading 30% - 40% Fe*– for southern part of Western BIF target alone.
 Excellent results from comprehensive laboratory testing.
 Average weight recovery of 44.63% and iron concentrate grade averaging 69.8%.
 Very low silica content averaging 3.3%, with very low levels of sulphur and phosphorus.
 Coarse grind still yields low silica concentrate.
 High concentrate purity indicates potential for project to deliver BF (Blast Furnace) or DR (Direct Reduction) grade pellets.
 Next phase drilling planned for August 2011 to extend resource over whole extent of the southern part of the Western BIF.

CORPORATE
 Signs Memorandum of Understanding (MOU) with  National Mineral Development Corporation Ltd (“NMDC”) for cornerstone investment, subject to regulatory approvals.
 NMDC and Legacy look to acquire and develop additional resource projects.
 Ongoing review of potential acquisition and corporate opportunities.

PLANNED ACTIVITIES – SEPTEMBER 2011 QUARTER
As detailed above, the principal activities will consist of:

Mt Bevan:   Second phase 6,000m RC drilling over the rest of the southern  Western BIF iron ore target, and calculation of a combined resource for this target. Diamond drilling and further metallurgical testing.  Commencement of scoping study.  Geological mapping and assessment of other  magnetite/hematite targets in project area particularly Mt Alexander and 20km long Eastern BIF unit(s).

Mt Celia: Commencement of  1,200m RC drilling program at Blue Peter prospect.  Assessment of other targets and prospects in project area.

South Laverton: Assessment and geochemical sampling.

East Kimberley: Further assessment of REE and base metal targets.

Robertson Range: Mapping and sampling at Narmana manganese prospect in E46/818.

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