TIDMLND
RNS Number : 1145L
Landore Resources Limited
04 September 2019
LANDORE RESOURCES LIMITED
(AIM Ticker: LND.L)
DRILLING UPDATE
BAM GOLD PROJECT
JUNIOR LAKE PROPERTY
London, United Kingdom, 4 September 2019 - Landore Resources
Limited (AIM: LND) ("Landore Resources" or "the Company") is
pleased to report on progress of the Summer Drilling and
Exploration programme on its BAM Gold Deposit, Junior Lake
Property, Ontario, Canada ("BAM Gold Deposit").
Highlights:
-- An infill drilling campaign, consisting of 24 holes HQ
diamond core for a total of 3,966 metres, has been completed on the
BAM Gold Deposit aimed at advancing the inferred portion of the
existing resource to the Indicated category for inclusion into an
upgraded Mineral Resource Estimate and Preliminary Economic
Assessment ("PEA") scheduled for completion in Q4 2019.
-- Drilling has successfully intersected gold mineralisation of
similar widths and grade to the existing BAM Gold Deposit with
multiple instances of visible gold ("VG"). Intersections included
drill-hole 0419-701 reporting 17.78 metres at 1.08 grams/tonne gold
(g/t) and drill-hole 0419-704 reporting 0.98 metres at
22.90g/t.
-- An additional 10 HQ diamond core holes for a total of 1,407
metres were drilled along strike to the west of the BAM Gold
Deposit extending the mineralised zone for a further 500 metres
from 900E to 400E. Drilling intersected similar lithologies and
mineralisation to the existing BAM Gold Deposit.
-- The BAM mineralised zone now extends for 3,600 metres from
400E to 4000E and remains open down dip and along strike to the
east and the west.
-- An extensive exploration campaign including ground
geophysics, geological mapping and soil sampling is currently in
progress along the highly prospective area between the BAM Gold
Deposit and Lamaune Gold Exploration Target located approximately
8.5 kilometres to the west. The campaign is expected to be
completed by mid-September with the results available for reporting
by the end of October.
Summer Drilling and Exploration Campaign:
The summer drill programme concluded on the 19(th) August 2019
with 38 HQ Diamond core holes drilled for a total of 5,946 metres.
Of this, 24 HQ diamond drill holes (0419-701 to 0419-724) for 3,966
metres were completed mainly in the BAM West area' aimed at
advancing the inferred portion of the existing BAM Gold Resource to
the Indicated category.
In addition, 10 HQ Diamond core holes for a total of 1,407
metres, were drilled along strike to the west of the BAM Gold
Deposit extending the Mineralised Zone for a further 500 metres to
the West from 900E to 400E.
A further 4 HQ Diamond core holes were drilled to test the
geophysical conductor MM-18, approximately 400 metres to the north,
running parallel to the BAM Gold Deposit.
Initial results include:
Easting Northing Drill-hole From Interval* Au
No Metres Metres g/t
--------- ----------- ------- ---------- ------
400E 575N 0419-700 64.39 1.96 3.54
--------- ----------- ------- ---------- ------
800E 450N 0419-694 143.88 1.00 7.81
--------- ----------- ------- ---------- ------
1250E 300N 0419-701 169.62 17.78 1.08
--------- ----------- ------- ---------- ------
1300E 345N 0419-702 96.25 6.65 2.76
--------- ----------- ------- ---------- ------
1ncluding 97.20 1.00 10.15
--------- ----------- ------- ---------- ------
1350E 375N 0419-703 47.00 10.00 1.14
--------- ----------- ------- ---------- ------
Including 47.00 1.28 5.90
--------- ----------- ------- ---------- ------
1350E 300N 0419-704 104.75 0.98 22.90
--------- ----------- ------- ---------- ------
and 126.04 11.32 1.22
--------- ----------- ------- ---------- ------
and 158.34 0.30 9.57
--------- ----------- ------- ---------- ------
1400E 350N 0419-706 56.00 8.37 2.19
--------- ----------- ------- ---------- ------
1400E 270N 0419-707 143.00 4.00 1.11
--------- ----------- ------- ---------- ------
1450E 225N 0419-709 194.02 0.89 11.80
--------- ----------- ------- ---------- ------
* The above drill holes were drilled north at 45 degrees into a
lithological package dipping approximately 85-75 degrees to the
south. The actual true thickness of mineralisation is estimated to
represent between 65-75% of the intervals shown in the above
table.
Results are pending for 14 drill holes in the existing BAM Gold
Deposit area and will be reported when received and collated.
The summer drilling campaign concentrated on infilling the
western zone of the BAM Gold Deposit from 950E to 1650E by drilling
at 50 metre spacing aimed at advancing the inferred portion of the
existing resource to the Indicated category for inclusion into an
upgraded Mineral Resource Estimate and Preliminary Economic
Assessment ("PEA") scheduled for completion during Q4 2019. Assay
results are pending, however those received to date report gold
mineralisation of similar widths and grade to the existing BAM Gold
Deposit with multiple instances of visible gold ("VG").
A ten-hole drilling programme was completed on a potential 500+
extension of the BAM Gold Deposit along strike to the west from
900E to 400E. The drilling intersected similar lithologies and
mineralisation to that already encountered at the BAM Gold Deposit.
However, more drilling will be required to establish continuity of
mineralisation for resource definition.
Four drill holes were drilled into the geophysical conductor
MM-18 which runs approximately 400 metres to the north parallel to
the BAM Gold Deposit. There was no evidence of gold within the
structure in the area drilled.
Exploration:
An extensive exploration campaign including ground geophysics,
geological mapping and soil sampling is currently in-progress along
the highly prospective area between the BAM Gold Deposit and
Lamaune Gold Exploration Target located approximately 8.5
kilometres to the west.
A north-west/south-east bearing grid 5,000 metres long by 1,200
metres wide with cross lines cut at approximately 200 metre spacing
has been established within the above area to allow ground
geophysics, exploration and soil sampling to be carried out over
approximately 32 line kilometres within the grid.
Preliminary results from the ground geophysics are highly
promising showing the potential continuation of the main conductors
encountered in the BAM Gold Deposit area. Final results are pending
and will be reported when received and collated.
Soil sampling has commenced with augured samples being collected
at 25 metre intervals over the entire 32 line kilometres. The
programme is scheduled for completion by mid-September with results
estimated to be available within Q4 2019.
Planning:
A drilling programme is under consideration in Q4 to further
extend the known BAM Gold Zone to the east and to test any
potential mineralisation identified in the current exploration area
reported above.
In addition, two deep holes are planned to test the continuity
of high grade mineralisation below the existing BAM Gold
Deposit.
Cube Consulting Pty Ltd ("Cube") has been engaged by Landore
Resources Canada Inc. ("Landore") to update the BAM Gold Resource
and the PEA and to prepare an Independent Technical Report, in
compliance with the requirements of the Canadian National
Instruments 43-101 Standards of Disclosure for Mineral Projects
("NI 43-101"), on the BAM Gold Project, in Ontario, Canada, for
completion by year end 2019.
BAM Gold Deposit:
The BAM Gold Deposit, discovered in December 2015, 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 80 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.
BAM Gold Resource and PEA:
A Technical Report and Preliminary Economic Assessment of the
BAM Gold Project was reported 20(th) February 2019. The report is
in compliance with the requirements of the Canadian National
Instruments 43-101 Standards of Disclosure for Mineral Projects
("NI 43-101"),
Mineral Resource Update: The updated Mineral Resource Estimate
for the BAM Gold Deposit is 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.
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 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.
.
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 / Peter Lynch Tel: 0131 220 6939
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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