Yaounde, Cameroon Africa(Cameroon News) – Legend Mining gets into a major infrastructure deal with Sundance Resources for Cameroon iron project.

Legend Mining Limited (ASX: LEG) has entered into a deal for the rail and port access with Australian counterpart, Sundance Resources (ASX: SDL) who has a similar project in Cameroon as well.

The letter of intent indicates that the two companies both of which operate out of Australia and have iron ore projects in Cameroon to would find ways to synergize on finding solutions to problems that both of them face.

In fact Legend is trying to decipher ways by which they can employ Sundance’s proposed infrastructure, railway network and port haulage to sort out the transportation issues in their Ngovoyang Project.

The infrastructure project is one of the major issues the Sundance was facing with their Mbalam Iron Ore Project located in Cameroon and Congo in central West Africa.

Both Sundance’s Mbalam Project and Legend’s Ngovoyang project are situated in the southern region of the Republic of Cameroon. The rail network being set up by Sundance is proposed to be constructed somewhere near the southern boundary of Legend’s Ngovoyang Project.

Mark Wilson, Managing Director of Legend Mining said, “Signing this agreement enables Legend to focus on our exploration activities with confidence in knowing there is a LOI providing a transport option for our ore to port.”

Giulio Casello, CEO and MD of Sundance said that as one of the first players to have got into this upcoming world?class iron ore belt, the Company feels that it is prime that they move together towards their common goals in total synergy with neighboring resources companies so that all stakeholders including the Government and people of Cameroon get to enjoy the maximum benefits of the deal.

“We believe it makes a lot of sense for our two Australian?listed companies that operate near each other in West Africa to demonstrate our mutual belief and to endorse cooperation in order to bring to fruition the development of a new world?class iron ore region.

We think the long term potential of this region could reach up to 100 million tonnes per year – or more – but for this to be achieved, the fundamental requirement will be the access to dedicated, heavy haulage infrastructure for the export of iron ore.”

Impressive progress during March quarter

Legend’s Cameroon Project involves four granted exploration permits spanning across an area of 3,970km2 and is estimated to be rich in iron ore and gold reserves.

Determination of 50 million tonnes of Direct Shipping Ore (DSO) is the core objective for Legend, which would be converted into a preliminary 1-2Mtpa operation with a wide scope for expansion in future.

However they will also be looking at magnetite-gneiss ore (lower grade but potential very high tonnage).

The Ngovayang Project area has the added benefit of being well connected by proper access infrastructure including rail and road networks to and from the port city of Douala.

Drilling Restarted

Diamond drilling was started all over again on 27 January 2011 at the Ngovayang Project.

This drilling indicated the restart of the proposed 5,000m man portable rig programme, which had been temporarily postponed on 30 September 2010 due to excessive rains.

The proposed programme is directed towards a combination of aeromagnetic and topographic highs associated with +50% Fe rockchip sample results. Seven priority target areas will be tested during this stage of drilling – Hill 335, Hill 419, Melombo, Melombo West, Melombo East, Bibondi and Southern target areas.

Large scale reconnaissance surveys that had been previously undertaken including mapping, rockchip sampling, trenching and pitting has been restarted aiming to throw up favorable aeromagnetic targets. Favorable rockchip iron results (+60% Fe) were collected from a number of prospects.

The latest revelation of an infrastructure deal with Sundance Resources would bring a potentially important infrastructure “piece” to Legend, which will now help the company to concentrate primarily on exploration and setting up a DSO resource and magnetite-gneiss resource.

At the end of the March quarter, Legend had $5.2 million cash. However, total cash, security deposits and other liquid assets held at cost, at the end of quarter had been considerably higher at a robust $9.75 million.

About Legend Mining

Legend Mining (ASX: LEG) is a cashed-up mining and exploration company with projects in Cameroon and Western Australia. The company’s exploration is targeted primarily towards the discovery of iron ore, base metal and precious metal deposits.

Legend is presently drilling iron ore targets at its Ngovoyang project in Cameroon. The project spans across more than 2,000km2 and is well connected by existing road, rail and port infrastructure. Legend is of the opinion that Ngovoyang’s size, prospectivity and infrastructure will be taking it to be a “company maker” in the future.

About Sundance Resources

Sundance Resources Limited is an international resources company which is currently involved in developing the Mbalam Iron Ore Project that is located alongside the border of the Republic of Cameroon and the Republic of Congo, in central west Africa. Sundance Resources is listed on the Australian Securities Exchange (ASX code: SDL) and also has the S&P ASX200 Index.

Being headquartered in Perth, Australia which has the world-class iron ore deposits of the Pilbara region ,the Company has been able to successfully get together both management and technical expertise of some of the world’s highly seasoned iron ore specialists . The company is working towards making a mark as a force to reckon with in the international iron ore sector.