TIDMLND
RNS Number : 8628B
Landore Resources Limited
12 June 2019
LANDORE RESOURCES LIMITED
(AIM Ticker: LND.L)
DRILLING AND EXPLORATION PROGRAMME COMMENCES
BAM GOLD PROJECT
JUNIOR LAKE PROPERTY
London, United Kingdom 12 June 2019 - Landore Resources Limited
(AIM: LND) ("Landore Resources" or "the Company") is pleased to
announce the commencement of the recently funded drilling and
exploration programme (the "Drilling Programme") on the BAM Gold
Deposit, Junior Lake Property, Ontario, Canada ("BAM East Gold
Deposit").
Highlights:
-- A Drilling Programme, consisting of 4,500 metres of HQ
diamond core, has commenced on the BAM Gold Deposit aimed at
further infilling and extending the defined resource of 951,000
ounces of gold.
-- In addition an extensive exploration campaign, including
ground geophysics and soil sampling followed by selected line
drilling, will be carried out on the highly prospective seven
kilometres along strike between the BAM Gold Deposit and Lamaune
Gold Exploration Target.
PLANNED WORKS:
Drilling: The defined NI43-101-compliant BAM Gold resource of
951,000 ounces extends over a distance of 1.7 kilometres within a
drilled zone of 3.1 kilometre length. Infill drilling will be
carried out within the remaining 1.4 kilometres to bring that
section up to defined resource level.
In addition, extension drilling will be completed adjacent to
the existing resource westwards for approximately 700 metres,
following promising IP (Inverse Polarisation) geophysics results
which indicate underlying structures similar to those within the
existing resource. These geophysical results demonstrate a high
potential that this area represents the western extension of the
BAM Gold Deposit.
The recently completed estimation work modelled potential
mineralised material within the above target areas for a possible
14,761,000t at 0.93g/t ounces gold for a further 441,000 ounces
gold, in the 'Unclassified' material category.
Landore's 2019 drilling campaign is aimed at advancing the above
'Unclassified' material into the resource category
The BAM Gold Deposit remains open at depth and along strike to
the east and to the West.
Exploration: The zone along strike for seven kilometres between
the BAM Gold Deposit and the Lamaune Gold Exploration Target has
been previously lightly explored for base metals and is traversed
by the highly prospective East-West trending 'Grassy Pond Gabbro
Sill' which contains the BAM Gold Deposit along its northern
flank.
There are two previously drilled prospects along this zone,
Windy Hill and Felix, with similar lithology to BAM Gold containing
anomalous to medium grade gold. Felix is currently being re-logged
with prospective sections being cut and assayed. Field exploration
in 2004 identified other prospective sections in the above zone
containing sediments adjacent to the Grassy Pond Gabbro Sill.
A major portion of the BAM Gold mineralisation itself resides
within metasedimentary rock adjacent to the Grassy Pond Gabbro
Sill.
BAM GOLD DEPOSIT:
The BAM Gold Deposit is located in the south central area of the
Junior Lake property and is interpreted as an Archean-aged
mesothermal gold deposit in which gold mineralisation is hosted by
sheared and altered rocks of the Grassy Pond (Gabbro) Sill and the
BAM Sequence. The host rock units strike in an east-southeast
direction (average of azimuth 105deg) and dip steeply to moderately
to the south at 70 to 75 degrees. The gold mineralisation is
interpreted to reside within a series of tabular shaped zones that
are oriented in a roughly en-echelon configuration and are
generally parallel to the overall strike of the host rock
units.
The 2018 summer drill campaign concentrated on infilling and
extending the existing BAM Gold Deposit, the results of which were
subsequently used to complete a revised Mineral Resource Estimate
and prepare a Preliminary Economic Assessment ("PEA") with
Technical Report, reported by Landore on 8(th) January and 20(th)
February 2019 respectively.
BAM Gold Resource: The new Mineral Resource Estimate (MRE)
modelling significantly increased the BAM Gold resource to:
28,826,000 tonnes (t) at 1.03 grams/tonne (g/t) for 951,000 ounces
of gold including 20,198,000t at 1.08g/t for 701,000 ounces gold in
the Indicated Category.
Drilling on BAM Gold to date has recorded a success rate of 30.1
ounces gold for every metre drilled with an average discovery cost
of US$8.36 per ounce placing BAM in the lowest quartile of
discovery within the Gold Industry.
The continued rapid growth of the BAM Gold Deposit together with
the possible future development of the other known gold prospects
such as Lamaune plus the likelihood of new discoveries along this
highly prospective 31 kilometre long Archean greenstone belt bodes
well for the future of the Junior Lake Property hosting a multi-
million ounce gold deposit.
BAM Gold PEA: The BAM Project Base case considered the economics
of exploiting a resource of 12.7 Mt at 1.26 g/t Au containing
515,000 ounces gold (koz Au). An 'Extended' (or upside) case
considers a 19.7 Mt resource also at 1.26 g/t Au containing 800 koz
Au.
At US$1,300/ounce the Base case generates a post-tax net present
value ("NPV") of US$69.2M with an internal rates of return "(IRR")
of 22.4%. The 'Extended' case generates a post-tax NPV(5) of
US$123.7M and post-tax real IRR of 26.9%.
The Base case has an all-in-sustaining cost ("AISC") of US$
806/oz with the 'Extended' case being slightly higher at US$
816/oz. Initial CAPEX is US$73.53M for Plant and infrastructure
plus US$ 20.28M for pre-production including mining and G+A
The PEA demonstrated the economic viability of this project as
well as its high growth potential, and has reinforced Landore's
opinion that in the initial stage the BAM Gold Project can be
developed as a low-cost open pit mining operation.
LAMAUNE GOLD:
Lamaune Gold is situated within the Lamaune Iron Property and is
located approximately 10 kilometers from the BAM Gold Deposit.
The Lamaune Gold deposit is an Advanced Exploration Target
associated with the Lamaune Iron deposit and located in close
proximity to, but not in, the banded iron formation (BIF). Lamaune
Gold was discovered in late 2008 by sampling prospective structures
and sulphide mineralization of the Lamaune Iron diamond drill core
for gold. (Reported 5(th) October 2010)
A drill campaign, consisting of 75 drill holes for a total of
11,644 metres, was completed on Lamaune Gold in the 2009/10
drilling programs. Drilling intersected narrow vein high grade gold
and wide zones of lower grade gold mineralization, including:
0.60 metres @ 118.66 g/t Au in drill hole 1110-88
21.50 metres @ 0.99 g/t Au in drill hole 1109-83
A review and conceptual model of the Lamaune gold deposit
defined an initial exploration target of 1,350,000 to 1,650,000
tonnes of mineralised material containing between forty to fifty
thousand ounces of gold (oz-Au) at a cut-off grade of 0.3 grams per
tonne (g/t).
The deposit remains open at depth and to the west along
strike.
The Junior Lake Property:
The Junior Lake Property, 100% owned by Landore Resources,
together with the contiguous Lamaune Iron property (90.2% owned)
(jointly the "Junior Lake Property"), consisting of 30,507
hectares, is located in the province of Ontario, Canada,
approximately 235 kilometres north-northeast of Thunder Bay and is
host to: The BAM Gold Deposit; the B4-7
Nickel-copper-cobalt-Platinum-Palladium-gold Deposit; the VW
Nickel-Copper-cobalt Deposit; Lamaune Gold Prospect and numerous
other precious and base metal occurrences.
A highly prospective Archean greenstone belt traverses the
Junior Lake Property from east to west for approximately 31
kilometres. The greenstone belt ranges from 0.5 to 1.5 kilometres
wide and contains all of Landore Resources' stated mineral
resources and prospects. However, the greater proportion of this
belt remains unexplored.
Michele Tuomi, (P.Geo., BSc. Geology), Director/VP Exploration
of Landore Resources Canada Inc. and a Qualified Person as defined
in the Canadian National Instrument 43-101 and the AIM Rules for
Companies, has reviewed and verified all scientific or technical
mining disclosure contained in this announcement.
- ENDS -
About Landore Resources
Landore Resources is an exploration company that seeks to grow
shareholder value through the acquisition, exploration and
development of precious and base metal projects in eastern Canada.
The Company is primarily focused on the development of the Junior
Lake Project. Landore Resources has mineral rights to 5 properties
in eastern Canada. The Company is headquartered in Guernsey, with
an exploration office located in Thunder Bay, Ontario, Canada.
For more information, please contact:
Bill Humphries, Chief Executive Officer Tel: 07734 681262
Richard Prickett, Finance Director Tel: 07775 651421
Landore Resources Limited www.landore.com
Derrick Lee / Beth McKiernan / Peter Lynch Tel: 01312209771
Cenkos Securities plc
Nominated Advisor and Broker
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No 596/2014.
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END
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