LONDON, Nov. 6, 2017 /CNW/ - Landore Resources Limited (AIM:LND) ("Landore" or "the Company") is pleased to provide a review on the recent combination of the Junior Lake and Lamaune properties, Ontario, Canada.
Landore's acquisition of the contiguous Lamaune property (90.2% owned by Landore Canada) has increased the size of the Junior Lake property from 22,497 hectares to 26,593 hectares, extending the coverage of the highly prospective Archean greenstone belt, traversing the property from east to west, and from 19 kilometres to approximately 31 kilometres in length.
Landore's prime asset is the Junior Lake property situated in the heart of the world class mining jurisdiction of Northern Ontario, Canada. As such, the Directors are considering a secondary listing on the Toronto Stock Exchange (TSX or TSX-V) as they believe that this would prove beneficial for the advancement of Landore's significant mineral discoveries on its Junior Lake property. A further announcement in connection with the potential dual listing on the TSX will be provided in due course as appropriate.
To support any application to the TSX, Landore will be required to submit an updated NI 43-101 Technical Report on Landore's Junior Lake property to include all of the previously reported mineral resource estimates as well as the BAM East Gold Deposit. Accordingly Landore has engaged Roscoe Postle Associates Inc. ("RPA") of Toronto, Canada to complete the Landore Junior Lake Technical Report which is scheduled to be finalised during Q4 2017.
The Technical Report will include resource upgrades on the following:
- The BAM East Gold Deposit: February 2017 Mineral Resource Estimate of 301,000 ounces gold plus upgrade to include 11,060 metres of additional drilling in 2017.
- The B4-7 Nickel-Copper-Cobalt-Platinum-Palladium Deposit: January 2013 Mineral Resource Estimate of 2,695,000 tonnes at 1.24% Nickel equivalent (NiEq) in the Indicated category for 33,248 tonnes of contained metal, plus upgrade to include 16,910 metres of additional drilling in 2013/2015.
- The VW Nickel-Copper-Cobalt Deposit: January 2010 Mineral Resource Estimate of 3.73 million tonnes at 0.49% NiEq in the Indicated category, and 0.72 million tonnes at 0.49% NiEq in the Inferred category giving a combined total 21,760 tonnes of contained NiEq metal.
The Technical Report will also include a review on the following:
- The Lamaune Gold Prospect: Exploration Potential of 40-50,000 ounces gold.
- The Lamaune Iron Project: Exploration Potential of 300-500 million tonnes at 25% to 35% Fe.
Information on the above mentioned Mineral Resource estimates and other associated reports can be found on Landore's website www.landore.com.
The Junior Lake Property:
The Junior Lake Property, 100% owned by Landore Resources, together with the contiguous Lamaune Iron property (90.2% owned) ( "Junior Lake Property"), consisting of 26,593 hectares, is located in the province of Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay.
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's stated mineral resources and prospects. However, the greater proportion of this belt remains unexplored.
See Link for PDF plan of the Junior Lake Property:
Landore's Corporate Strategy for the Junior Lake Property is to:
- Advance the newly discovered BAM East Gold Deposit to +1 million ounce gold resource and commence pre-feasibility studies in 2018.
- Expansion of the existing B4-7 and VW compliant resources to +100,000 tonnes of Nickel Equivalent with the objective to either develop in JV Partnership or sell outright.
Since the discovery of the BAM East Gold Deposit in December 2015, Landore has focused all of its exploration efforts and funds on advancing the BAM Gold resource towards the 1 million ounce target.
The Board believes that there are now a number of positive reasons for reassessing the B4-7 and VW Nickel Deposits, which will be able to be reflected in the upgrade of all deposits on the Junior Lake Property that is required for a possible TSX/TSXV listing. These are:
Proximity: The three deposits, BAM Gold, B4-7 and VW are all located within three kilometres of each other providing significant cost saving synergies for their development either together or in sequence with the possibility of sharing infrastructure, machinery, plant etc.
Open Pit Mining: The BAM Gold Deposit is, at this stage, intended to be an open pit operation. Both the B4-7 and VW Deposits will be a combination of open pit and underground operations. Landore has recently completed geotechnical studies on the B4-7 open pit which has allowed a significant steepening of its wall slopes with the consequential increase of the material extracted by low cost, bulk mining open pit method, improving the overall economics of the project.
Additional tonnage: Since the last NI 43-101 Resource upgrade on the B4-7 deposit prepared in January 2013, a further 16,910 metres of drilling has been completed on the B4-7 and VW deposits aimed at:
- Increasing the tonnage of both deposits.
- Upgrading the B4-7 defined Exploration Target of +- 20,000 tonnes at 1.24% NiEq.
- Confirming the continuity of the "Alpha Zone", a palladium-platinum rich vein adjacent and sub parallel to the main B4-7 deposit. (The Alpha zone mineralisation was not included in the 2013 Resource estimate).
The drilling was successful in all cases including intersecting B4-7 type material with similar grades down plunge for a further 350 metres from the defined resource together with confirming the continuity of the Alpha Zone for 700 metres alongside the B4-7 deposit.
Improving metal prices: This past year has seen a marked improvement in all of the metals contained in the B4-7 and VW deposits, in particular cobalt and palladium:
- COBALT: With the increased interest for electric battery driven cars throughout the world, the demand for cobalt is rapidly increasing. Each vehicle requires from 5 to 15 kilos of cobalt, depending on size. The production of cobalt is dominated by one country: Democratic Republic of Congo.
The B4-7 2013 resource upgrade reported a significant cobalt content credit averaging 0.07%, equivalent to 1.5 pounds of cobalt per tonne of ore for a total content of +4 million pounds for the deposit to date. The current LME price for Cobalt is approximately $27 per pound.
- PALLADIUM: The recent increase in demand for petrol as against diesel powered vehicles has seen an upsurge in the demand for palladium. The B4-7 2013 resource upgrade reported a palladium content credit averaging 0.55 grammes/tonne of ore, which in itself is a sound credit. However the Alpha Zone, which has yet to be included in the resource, is palladium rich with drilling reporting intersections of 1.5 metres at 10.15g/t Pd in drill hole 0415-507 and 20.15 metres at 1.54 g/t Pd. in drill-hole 0414-503 including 0.72 metres at 12.85 g/t Pd. The current LME price for Palladium is approximately US$972/oz.
Lamaune Gold Prospect:
The Lamaune Gold prospect, located 11 kilometres to the west along trend from the BAM East Gold Deposit, contains an Exploration Target of 40-50,000 ounces of gold. Drilling intersected narrow vein high grade gold and wide zones of lower grade gold mineralisation, 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
In 2017, Landore initiated a review of the geology and mineralisation on several of the Company's earlier gold findings including the re-interpretation of the Lamaune Gold Deposit. The reviews concluded that several of these gold prospects, including the Lamaune Gold Deposit, were similar in geology and mineralisation to the BAM East Gold Deposit.
The above review has encouraged the Company's belief that the favorable geological lithology containing the BAM East Gold Deposit has the potential to continue along the full 31 kilometre east-west extent of the Archean greenstone belt traversing the Junior Lake Property.
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.
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.
This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No 596/2014.
SOURCE Landore Resources Limited
For further information: Bill Humphries, Chief Executive Officer, Tel: 07734 681262; Richard Prickett, Finance Director, Tel: 07775 651421; Landore Resources Limited, www.landore.com; Angela Hallett / James Spinney / Jack Botros, Strand Hanson Limited, Nominated Advisor and Broker, Tel: 020 7409 3494