Landore Resources Limited - Junior Lake property iron ore deposit

    (AIM Ticker: LND.L)

    Exploration by Landore has confirmed the presence of a large magnetite
    Iron ore deposit at the western end of the Junior Lake property.

    THUNDER BAY, ON, Oct. 27 /CNW/ -

    -  Strong magnetic anomalies extend over a strike length greater than
       3.8 kilometres with banded magnetite iron formation (BIF) frequently
       outcropping at surface

    -  Drilling has intersected wide bands of BIF, including 78.10 metres
       (256 feet) in drill-hole 1108-45, and has confirmed the depth
       potential with drill-hole 1108-54 intersecting continuous BIF to a
       vertical depth of 192 metres (630 feet)

    -  The Iron ore deposit is just 11 kilometres from the Canadian National
       Railway providing direct access to the Port of Thunder Bay on Lake
       Superior, from where, up to only 25 years ago, the giant Steep Rock
       Iron Mines of Atikokan shipped Iron ore.

    Geophysical review-2007:

    In late 2007, in response to the strong demand of iron ore, Landore
commissioned a Geophysical review of the historic Zmudzinski-Despard Iron ore
deposit located to the south and south-east of North Lamaune Lake.
    The review compared the magnetic anomalies outlined on the Iron ore
deposit in 1960 with Landore's 2004 Aerotem EM/Magnetic survey.
    The 2004 magnetic data is from a very accurate, high resolution (100
metre flight line separation), and well located magnetic survey and is far
superior in all technical aspects with respect to the 1960 data.
    The review showed that the 8 anomalies (A-H) outlined in the 1960
magnetic survey and mapping program can all be roughly correlated with the
2004 airborne magnetic data.
    The 1960 anomalies also generally correspond to the 62,000 and 63,000
'nano-Tesla' (nT) total magnetic field contour levels of the 2004 airborne
survey. The 63,000nT contour interval of the airborne survey encompasses an
area of approximately 419,000sq.m.
    Commenting on this report, Chairman of Landore Resources, Bill Humphries,
    "The North Lamaune Lake Iron ore deposit is yet further confirmation that
the 28 kilometre long Junior Lake property is host to a variety of highly
prospective metal deposits and has the potential to become a stand alone
mining region in its own right. I look forward to advancing both the Iron ore
deposit and the VW and B4-7 Nickel deposits towards mining and production".
    The Iron ore deposit had been investigated between 1958 and 1960 by
trenching, sampling, and magnetometer surveys conducted independently by J.
Zmudzinski, W. Tomlison, Sogemines Development Company Limited and R.V. Oja,
consulting geologist for Steep Rock Iron mines Ltd. Atikokan, Ontario.
    The following extract is from an assessment report by R.V. Oja, 1960,
entitled 'Zmudzinski-Despard Iron Property, Kowkash, Mining Division, Thunder
Bay District,
    The limited magnetometer surveys conducted on the Despard-Zmudzinski
property indicate the presence of two main areas of magnetic anomaly, one in
the northwest corner of the property and the other in the southeast corner.
The former consists of three anomalies lying slightly en echelon, extending
over a length of about 4,500 feet having a maximum width of 250 feet. Possible
ore underlying the proportions of these anomalies in excess of 80,000 gammas
totals about 26 million tons to a depth of 500 feet, a conservative estimate
of their total possible depth. The southeast area also consists of several
anomalies on which much more detailed work must be concentrated before
definite predictions of ore content can be made.
    Extract ends. (This quoted resource is not Canadian National Instrument
    (NI) 43-101 compliant.)
    Note: The three anomalies referred to in the above extract, (A, B and C),
have a stated combined area of 525,000 sq ft. (48,773sq.m).
    R.V. Oja, 1960, indicated that several of the anomalies were open and
that there was a good chance that the tonnage could be increased.
    The results of the Geophysical review were sufficiently encouraging to
warrant conducting of detailed ground total field magnetic surveys over a 3.8
kilometre trend to the south-east of North Lamaune Lake.

    Total Field Magnetic Survey-2008:

    In February 2008, line cutting and gridding, at 100 metre spacing, was
carried out over the 3.8 kilometre trend in preparation for the proposed
magnetic survey. In all 45.4 kilometres of lines were cut, chained and marked.
    Following the line cutting a total field magnetic survey was completed
over the area, initially using a GEM GSM-19 magnetometer for 12.9 kilometres
and then, due to the extremely high magnetic gradients encountered within the
grid area, the remaining 32.6 kilometres of the survey was completed utilizing
a high resolution Cesium magnetometer.
    A comparison of the results of the above survey with the 2004 airborne
magnetic survey results show a close correlation, with a total of 9 anomalous
magnetic responses defined by contour values of 64,000nT or greater. The
historic anomalies, 'A to H', identified by R.V. Oja, are represented within 5
of these newly defined anomalies with additional strong anomalies between
historic anomalies 'C and D' and south-east of 'E and G' suggesting the
potential for additional targets and iron deposits not previously mapped.

    Trenching and Drilling-2008

    Encouraged with the results of the review of the historic information and
the recent magnetic surveys, Landore completed trenching and exploratory
drilling on the two historic anomalies 'D and E', which were readily
accessible by track, with banded BIF outcropping at surface and within an area
that had been recently clear felled.
    Three trenches, totalling 227 metres long, were excavated and washed,
exposing wide bands of banded iron formation. Sawn cut channel samples were
taken and analyzed by ALS laboratories, Thunder Bay, at their branch located
in Perth, Western Australia, specializing in Iron analysis.

    Results from the combined BIF widths in each trench are:

    Trench               Width                Fe
     No                  Metres                %
    T-48                 52.48               26.03
    T-49                 47.28               30.07
    T-50                 12.25               30.32

    Commencing in July 2008, an exploration drilling campaign, consisting of
13 drill-holes, Diamond NQ core, for a total of 1,938 metres was completed on
the 'D and E' historic anomalies (7 holes), the 'F and G' historic anomalies
(5 holes) and hole 1108-52 on an outcrop a further 3 kilometres to the
south-east of the known trend.

    Results from the BIF intersections received to date include:

    Drill-hole              From                Width                 Fe
       No                  Metres               Metres                 %
    1108-41                 18.00                14.47               25.97
     and                   112.91                24.22               26.81
    1108-42                 29.08                65.74               30.69
     and                   201.00                23.44               28.29
    1108-44                 57.00                31.05               29.14
     and                    97.57                 8.28               36.38
    1108-45                 17.00                78.10               30.44
    1108.48                 59.30                28.20               29.19
    1108.49                  6.00                18.18               28.89
    1108-50                130.00                19.37               29.56
     and                   154.85                15.72               29.76

    Note: All holes were drilled at 45 degrees excepting 1105-54 that was
drilled at 75 degrees to test the depth potential. The BIF is generally
dipping at 65 to 75 degrees.
    Assays are outstanding on holes 52 to 54. However core logging and
specific gravity readings show the core to contain BIF expected to return
similar grades to those listed above.

    Geology-North Lamaune Lake.

    Curvilinear airborne magnetic anomalies infer at least two main
sub-parallel trends of potential iron formation in a north-west south-east
direction with less extensive oblique en-echelon trends.
    The 2008 drill program has provided a limited test of these anomalous
trends with 3 fences spaced 200 to 400 metres apart, confirming the presence
and grades of iron formation reported by OJA (2006).
    The above geophysical trends remain untested by drilling for at least 2
kilometres along strike to the north-west and similarly along strike to the
south-east providing excellent potential for discovery of additional magnetite
iron formation.
    Trenching and drilling has confirmed at least 3 horizons of BIF up to 75
metres wide and historic reports of finely banded magnetite with inter-bedded
chert of similar thicknesses. Strong centimetre to metre scale folding is
evident and as such likely exists on a larger scale, possibly causing
thickening and thinning of the iron formation along the main trends.
    Iron ores are rocks and minerals from which metallic iron can be
economically extracted. The iron itself is mainly found in the form of
magnetite and hematite.
    The typical grade of iron at which a magnetite-bearing banded iron
formation becomes economic is roughly 25% Fe, which can generally yield a 33%
to 40% recovery of magnetite by weight. The typical magnetite iron ore
concentrates are generally in excess of 63% Fe by weight and are usually low
phosphorus, low aluminium, low titanium and low silica and demand a premium

    Extract from R.V.Oja's 1960 report on the North Lamaune Iron ore deposit:
    A beneficiation report on a sample of banded iron formation from the west
end area, after grinding to -100 mesh shows that the concentrate contains
65.36% iron, 0.071% phosphorus, 6.58% silica and 0.20% titania. On the basis
of the microscopic examination, it is believed a lower silica content could be
obtained by finer grinding.
    Extract ends.

    Thus, from the drilling results and the limited historical metallurgical
testing, the North Lamaune Iron occurrence has the potential to be
economically viable.
    In addition the iron formation is on or near surface along the 3.8
kilometre trend providing for a low stripping ratio of ore to waste with
associated low mining costs.
    Further drilling will be necessary to delineate a resource. However the
recent magnetic surveys together with the trenching and drilling give promise
that a resource many times larger than the historic estimates on the North
Lamaune Iron ore deposit can be expected.
    Perhaps the greatest advantage that the North Lamaune Iron ore deposit
has is its proximity (just 11 kilometres) to the Canadian National Railway
providing direct access to the Port of Thunder Bay on Lake Superior, from
where, up to only 25 years ago, the giant Steep Rock Iron Mines of Atikokan
shipped Iron ore to the iron mills of North America.
    The above parameters are sufficiently encouraging for Landore to advance
the North Lamaune Iron ore deposit towards resource status, with additional
geophysical surveys, metallurgical and beneficiation testing together with a
substantial drilling campaign programmed to commence in early 2009.
    Additional geological staff, specializing in iron ore, will be engaged to
ensure the uninterrupted progress of the VW Nickel Deposit, the B4-7
Nickel-copper-cobalt-PGEs Deposit and ongoing exploration on the other highly
prospective mineral occurrences at Junior Lake.
    James Garber, (BSc. Hons. Geology, member of APGO) a Director of Landore
Resources Ltd and a qualified person as defined in the Canadian National
Instrument 43-101, has reviewed and verified all scientific or technical
mining disclosure contained in this announcement, which is stated in
accordance with the Canadian Institute of Mining Metallurgy and Petroleum.

For further information:

For further information: Bill Humphries, Chairman, Tel: 07734 681262;
Richard Prickett, Chief Executive, Tel: 07775 651421; Landore Resources
Limited,; Simon Raggett, Tel: 020 7409 3494, Strand Partners
Limited; David Bick, Tel: 07831 381201

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