Final Results

RNS Number : 6024E

Landore Resources Limited

14 May 2013

 



14 May 2013

Landore Resources Limited

Final Results

 

The Board of Landore Resources Limited is pleased to announce its audited results for the year to 31 December 2012.

 

Operational highlights

·     Continued excellent progress on the Junior Lake Nickel Project.

Enquiries:

Bill Humphries/Richard Prickett

Landore Resources Limited

Tel: [phone]

Angela Hallett / James Spinney

Strand Hanson Limited

Nominated Adviser and Broker

Tel: [phone]

David Bick

Tel: [phone]

 

Chairman's statement

I am pleased to present the 2012 Annual Report for Landore Resources Limited ("Landore Resources" or the Group").

The Group made excellent progress this past year further developing its Junior Lake Nickel project, comprising the B4-7 Nickel-Copper-Cobalt-PGEs deposit and the VW Nickel deposit, located on its Junior Lake property in Ontario, Canada. With these positive results, the Group has now commenced Pre-Feasibility studies on these combined deposits.

Additionally, Landore Resources has further explored the highly prospective area west of the B4-7 deposit to enlarge the resource base. Full details of these projects are set out in the Operations report which follows.

Financial results

In the year ended 31 December 2012, the Group incurred a loss of £4,330,518 (2011: £485,403). The apparent large increase in losses is largely due to the profit generated from last years' demerger of Lamaune Iron Inc. Exploration and resource drilling also contributed to the year's losses. The expenditure item of direct explorations costs amounted to £3,126,093 during the year, funded by share placements raising approximately £4.9 million during 2012.

Landore Resources has no debt and continues to raise further equity as needed to carry out its development plans. Since the year end the Group has raised a further £835,000 to strengthen its available cash resources. The Directors are confident of raising further funds as required with the continued support from our shareholders.

The Junior Lake property

The property is situated 235 kilometres northeast of Thunder Bay in the province of Ontario, and is highly prospective for numerous metals including nickel, copper, cobalt, PGEs, gold and lithium.

B4-7 Nickel-Copper-Cobalt-PGEs deposit: In January 2013, The Group announced an updated resource estimate for the B4-7 depositidentifying 2,695,000 tonnes at 1.24% Nickel equivalent (NiEq) for 33,248 tonnes of contained metal, all in the Indicated category. The deposit remains open down plunge at depth and along strike to the west.

The independent consultants who prepared this resource estimate, RPA Inc. of Toronto, Canada ("RPA"), also identified an exploration target located immediately west of the B4-7 deposit ("Exploration Target") containing a potential 1.5 Mt to 2.0 Mt of sulphide mineralisation of similar grade range to that which has been outlined to date. Further exploration drilling conducted in this area during the first quarter of 2013 successfully intersected B4-7 style massive sulphide mineralisation; further drilling will bring the Exploration Target into the resource.

The Group is now focusing on Pre-Feasibility studies on the combined B4-7 and VW deposits and is well placed to advance the Junior Lake Nickel project towards production.

Scorpion Zone: During autumn 2012, a deep-penetrating 'Direct Current Induced Polarization' (DCIP) and Magnetotellurics ("MT") geophysical survey was conducted over the majority of the Scorpion Zone. The Scorpion Zone is a distinctive geophysical magnetic anomaly hosting the B4-7 deposit together with the polymetallic Alpha Zone and Exploration Target.

This geophysical survey indicated that the highly conductive horizon hosting the B4-7 deposit extends down plunge at depth and west along strike of the deposit indicating the potential for further significant massive sulphide mineralisation. Several compelling exploration targets have been identified by the resistivity and chargeability results, and will be followed up with drilling.

Infrastructure: This multi commodity asset benefits from an existing and excellent infrastructure. There is very good road access all year round, and the Canadian National Railway is only 13 kilometres from the property. In addition, there is plentiful water and the potential link into the Hydropower system.

The Group continues to maintain excellent relationships with the local First Nations on whose traditional lands our Junior Lake property is located. We have enjoyed many years of successful co-operation under our joint Memorandum of Understanding.

I thank the shareholders for their strong support, as well as management and staff at Thunder Bay and on site for their continued dedication and performance. Landore Resources is positioned to move forward with development plans of the Junior Lake Nickel Project , and will have a very successful year.

William Humphries

Chairman

13 May 2013

Operations report

INTRODUCTION

Landore Resources Limited, through its 100 per cent. owned subsidiary Landore Resources Canada Inc. ("Landore"), is actively engaged in mineral exploration in Eastern Canada. Landore owns or has the mineral rights to six wholly owned properties in Eastern Canada, owned 100 per cent., of which Mount Fronsac is optioned to a third party. Landore also owns a 30 per cent. interest in the West Graham property.

Landore through its 100 per cent. owned subsidiary Brancote US, owns or has the mineral rights to a further eight properties for 99 claims in the State of Nevada.

Landore's exploration focus is on the highly prospective Junior Lake property, Ontario.

Full details of the Group's projects , including maps, 43-101 resource reports, geophysical surveys etc can be viewed on the Group's website , www.landore.com.

JUNIOR LAKE PROPERTY

The Junior Lake property, 100 per cent. owned by Landore, is located in the province of Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay and is host to the Scorpion Zone which contains the B4-7 Nickel-Copper-Cobalt-PGEs deposit, the Alpha Zone and the Exploration Target located immediately west of the B4-7 deposit.Junior Lake also contains the VW Nickel deposit and numerous other highly prospective mineral occurrences.

The Junior Lake property extends for 31 kilometres and covers an area of 31,603 hectares.

In 2005, encouraged by favourable global nickel market conditions, Landore intensified its exploration effort on the Junior Lake property where the historical B4-7 deposit is located. In Q4 2005 the VW deposit was discovered. Subsequent drilling in 2006 and 2007 delineated the VW and B4-7 deposits and brought them to Canadian National Instrument 43-101 (NI 43-101) compliant resources.

In 2008 with the burgeoning demand for iron on the world market, Landore shifted focus to its prospective Lamaune Magnetite Iron occurrence, located on the western portion of the Junior Lake property. Drilling activities during 2009 and 2010 delineated an 'Exploration Potential'of 300 to 500 million tonnes of mineralisation grading from 25 per cent. Fe to 35 per cent. Fe (2011: NI 43-101 Technical Report). The Lamaune Iron and Lamaune Gold prospects were transferred to the new company Lamaune Iron Inc. in 2011.

In 2011 with improving nickel prices, Landore refocused its exploration efforts on the B4-7 and VW deposits.

Landore's exploration during 2012 has successfully brought Inferred portions of the B4-7 deposit to Indicated status, and has strategically positioned Landore to proceed with Pre-Feasibility Studies on the combined B4-7 and VW deposits in 2013.

B4-7 NICKEL-COPPER-COBALT-PGEs DEPOSIT

The B4-7 deposit is located in the centre of the lease area approximately 3 kilometres to the northwest of the VW deposit. The B4-7 deposit mineralisation is hosted within a sub-vertical massive sulphide vein with stringers, net-textured and disseminated sulphides in the immediate hanging wall. The B4-7 deposit outcrops at surface with the upper 150 metres of the deposit being amenable to lower cost open pit mining. Below 150 metres, the grade improves sufficiently for underground mining.

The B4-7 deposit resource estimate and report, completed by RPA Inc, of Toronto, Canada ("RPA") in January 2013, identified 2,695,000 tonnes at 1.24per cent. Nickel equivalent (NiEq) for 33,248 tonnes of contained metal, all in the Indicated category.

The report also identified the Exploration Target located immediately west of the B4-7 deposit containing a potential 1.5 Mt to 2.0 Mt of sulphide mineralisation of similar grade range to that which has been outlined to date.

The 2012 winter drilling programme, completed in March 2013, consisting of 14 NQ diamond drill-holes from 0413-463 to 0413-476 for 5,172 metres, concentrated on the potential Exploration Target, together with its extension to the west. Results have been highly promising, confirming the continuation of the B4-7 massive sulphide mineralisation between the existing intercepts on lines 175W and 300W.

B4-7 main zone intersections include:

Drill-hole	From	Width*	Ni	Cu	Co	Pd	Pt	Au
No	Metres	Metres	%	%	%	ppb	ppb	ppb
0413-469	413.00	11.00	0.38	0.23	0.04	274	73	15
including	414.00	3.00	0.63	0.23	0.05	389	183	28
0413-470	453.00	31.00	0.31	0.29	0.04	276	98	10
including	467.00	3.00	0.80	0.39	0.09	636	271	12
and	472.00	1.00	0.18	1.50	0.12	217	81	10
0413-470	488.00	5.00	0.87	0.53	0.08	531	36	17
including	489.00	1.00	0.46	1.17	0.06	379	14	36
0413-472	543.67	6.08	0.49	0.26	0.05	414	34	18
including	543.67	1.33	0.91	0.01	0.07	695	83	19

*The actual true thickness of mineralisation is estimated to represent between 60-70% of the intervals shown in the above table.

Drilling on the Exploration Target has also intersected Alpha Zone style disseminated sulphide mineralisation. The Alpha Zone contains significant palladium with elevated nickel, copper, cobalt, platinum and gold. This mineralisation is found in both the open pit and underground portions of the B4-7 deposit.

Polymetallic Alpha Zone/Hanging wall intersections include:

Drill-hole	From	Width*	Ni	Cu	Co	Pd	Pt	Au
No	Metres	Metres	%	%	%	ppb	ppb	ppb
0413-470	400.00	3.00	0.73	0.15	0.04	3,283	240	15
including	401.00	1.00	1.34	0.09	0.07	3,790	139	9
0413-471	393.00	6.00	0.29	0.22	0.01	736	110	38
And	408.00	1.00	0.25	0.11	0.02	2,890	580	25
0413-473	425.00	1.00	0.51	0.14	0.03	1,880	112	5

*The actual true thickness of mineralisation is estimated to represent between 60-70% of the intervals shown in the above table.

Alpha Zone mineralisation has not been included in the B4-7 resource due to its complexity along strike. Landore retained RPA in late March 2013 to conduct a study into the Alpha Zone style mineralisation so as to better understand the structural, lithological, and genetic characteristics of this style of mineralisation.  Should these studies provide positive results, the potential exists to consider portions of the Alpha Zone as mineral resources.

Preliminary metallurgical studies completed in 2010 indicate that nickel concentrate grades and recoveries of 13.5 per cent. nickel at 53 per cent. recovery with 17 per cent. copper at 87 per cent. recovery are achievable. Marketable concentrate can be achieved with further processing stages to upgrade the nickel, copper and PGE content with the rejection of pyrrhotite.

The B4-7 deposit, so far delineated over 650 metres of strike, remains open down plunge at depth and along strike to the west. A previously completed airborne electromagnetic survey, as well as the deep-penetrating DCIP + MT survey completed in autumn 2012, suggests the conductive horizon hosting the B4-7 deposit persists to the west.

The results of the recently-completed B4-7 resource estimate, together with encouraging drill results from the Exploration Target, have contributed to the overall economic viability of the Junior Lake Nickel project.

VW NICKEL DEPOSIT

The VW deposit, discovered by Landore in late 2005, is located at Ketchikan Lake in the central part of the Junior Lake property and is Landore's most advanced project. From 2005 to 2010, Landore has drilled 142 diamond NQ size holes for 35,339 metres on the VW deposit. The VW deposit outcrops at surface with the upper 150 metres of the deposit being amenable to lower cost open pit mining. Below 150 metres, the grade improves sufficiently on the main Katrina zone for underground mining.

In October 2009, a NI 43-101 compliant report on the resource estimate upgrade for the VW deposit was completed by RPA.

The resource estimate, using a cut-off grade of 0.25 per cent.nickel reported:

• Indicated - 3.73 million tonnes at 0.49 per cent. NiEq.

• Inferred - 0.72 million tonnes at 0.49 per cent. NiEq.

For a contained 21,760 tonnes NiEq.

84 per cent.of the resource is in the Indicated category. The resource remains open to the east and

to the west as well as down dip.

Metallurgical studies completed in 2008 indicate that nickel concentrate grades and recoveries ranging from 14 per cent. nickel at 74 per cent. recovery to 10 per cent. nickel at 80 per cent.recovery are a reasonable representation of the expected plant recovery.

PLANNED

Pre-feasibility studies, including ancillary metallurgical, geotechnical, environmental and socio economic studies, on the combined B4-7 and the VW deposits have been initiated.

A drill program for metallurgical, geotechnical and infra-structure condemnation is currently being prepared to be carried out during Q2/3 2013.

SCORPION ZONE

The Scorpion Zone is a distinctive geophysical magnetic anomaly located approximately 3 kilometres to the northwest of the VW deposit and is host to the B4-7 deposit together with the Alpha Zone and Exploration Target. The zone extends 500 metres to the east of the 00 base line of the B4-7 deposit and extends 1,000 metres to the west of line 00 where it is truncated by the Juno Lake shear, and curls north and then to the east around a prominent 150 metre diameter magnetic low.

Exploration drilling has established that this zone hosts a collective potential massive sulphide mineralisation strike length of 1.5 kilometres.

During autumn 2012, a deep penetrating 'Direct Current Induced Polarization' (DCIP) and Magnetotellurics (MT) survey was completed on the Scorpion Zone. This survey acquires three sets of data in multi-directions; DC (direct current), IP (induced polarization) and MT, and is a true three dimensional survey. Sophisticated digital signal processing is utilized to obtain high resolution imaging at depths up to 1000+ metres below surface.

The DCIP + MT survey has indicated that the highly conductive horizon hosting the B4-7 deposit extends down plunge at depth and west along strike of the deposit indicating the potential for further significant massive sulphide mineralisation.

The survey interpretation has also identified five areas of interest for further exploration, based on a review of highly conductive horizons with associated moderate chargeability responses. Three areas of interest, located in the central, eastern and northern parts of the survey area appear to be interconnected, with the northern area extending to depth and dipping from the existing B4-7 deposit and adjacent exploration target immediately west of the deposit.

The results from the DC resistivity survey results correlates well with nickel and copper assay results, and this survey is the primary tool for locating potential drill targets, with the chargeability model providing complementary information to validate target selection.

PLANNED

Encouraged by the success of the resistivity results in identifying potential nickel targets at depth, Landore intends to expand the DCIP + MT geophysical coverage over the whole prospective area between the B4-7 and VW deposits, including the VW deposit itself, during the winter 2013/14 program.

In preparation for this exercise, approximately 60 kilometres of line cutting is currently underway over the proposed survey area.

INFRASTRUCTURE

The city of Thunder Bay is located on the northern shore of Lake Superior and is the main supply hub for the mining centres of northern Ontario including Red Lake, Pickle Lake, and the Musselwhite gold mine. It has extensive port facilities and an airport providing daily flights to major provincial cities, as well as a rail line that provides access to both eastern and western North American markets.

Access to Junior Lake from Thunder Bay is via a sealed highway for 235 kilometres to the town of Armstrong and then via a well maintained forest products unsealed road for 100 kilometres that runs to the property.

The Canadian National Railway runs parallel to the Junior Lake property 13 kilometres to the south providing direct transport access to both the nickel smelting centre of Sudbury and the port facilities at Thunder Bay. In addition, Junior Lake has abundant water resources nearby and is just 10 kilometres from the planned hydro-electric power station on the Little Jackfish River.

ENVIRONMENTAL BASELINE STUDIES

Golder Associates of Sudbury, Ontario, have continued with the Environmental Baseline Studies programme initiated on the mining leases containing the B4-7 and VW deposits in the winter of 2007.

Water surface monitoring of lakes and drainage tributaries within the vicinity of the deposits have continued on a bi-annual basis during 2011 and have been increased to a quarterly basis in 2012.The area of influence has recently been expanded to include lakes and drainage further out from the leases. The environmental and baseline studies are all pre-requisite for permitting requirements for the development of the B4-7 and VW deposits.

MINING LEASES

A pre-requisite for the development of the B4-7 and VW deposits is to secure tenure over an area of land sufficiently large to provide for development, mining, processing, infrastructure and buffer zones around the mining areas and for future expansion.

Landore has been granted three mining leases ("Mining Leases"), which include mining and surface rights, over an area encompassing the B4-7 and VW deposits. The mining leases cover 23 existing exploration claims for a total area of 3,676 hectares and have been granted for 21 years renewable for further terms of 21 years.

Within the Mining Leases, Landore has the right, subject to provisions of certain Acts and reservations, to:

• Sink shafts, excavations etc., for mining purposes.

• Construct dams, reservoirs, railways etc., as needed.

• Erect buildings, machinery, furnaces, etc. as required and to treat ores.

MIMINISKA LAKE - KEEZHIK LAKE PROPERTIES

MIMINISKA LAKE PROPERTY

Landore's Miminiska Lake property, 100 per cent. owned by Landore, covers an area of 5,494 hectares and is located approximately 130 kilometres to the north of the Junior Lake property and 115 kilometres to the east of the Pickle Lake mining camp in the highly productive and prospective Uchi Belt. Landore completed four drilling campaigns between 2003 and 2005 on the Miminiska gold occurrence with 47 NQ diamond drill holes for 9,349 metres, focusing on two potential shoots within a known 800 metres strike length. Excellent results were received with grades reporting up to 131 g/t gold over 0.5 metres and 40.2 g/t gold over 2.3 metres.

An independent technical review was completed in 2009 on the Miminiska Lake property which established the presence of two exploration targets:

• Miminiska Lake - 232,000 tonnes at 5.62 g/t gold

• Frond Lake - 271,000 tonnes at 5.10 g/t gold

for a total of 503,000 tonnes at 5.34 g/t for 86,357 ounces of gold.

Both these exploration targets are open along strike and at depth and have good potential for expansion and upgrading to a mineral resource.

KEEZHIK LAKE PROPERTY

Landore holds 45 mining claim blocks, for 9,920 hectares, in the highly prospective Keezhik Lake area, located 20 kilometres north of Landore's Miminiska Lake property and 150 kilometres southeast of Goldcorp's Musselwhite Gold mine. Landore's land package spans over 20 kilometres across prime gold exploration targets.

The Keezhik Lake area is adjacent to the North-Caribou - Totogan Shear Zone that is also host to Goldcorp's Musselwhite Gold mine, located 150 kilometres to the northwest. The Musselwhite Goldmine has produced in excess of 2.5 million ounces with 2 million ounces of gold in mineral reserve. The Keezhik Lake claims are also located in the highly productive and prospective Uchi Belt.

During Q3 2011, a field reconnaissance, mapping and sampling campaign was carried out at Keezhik Lake. Field investigation of geophysical anomalies, prospective geological features, and historical gold showings revealed several areas of interest on the property warranting follow-up exploration work.

PLANNED

A 1,500 metre drilling campaign is scheduled for Q1 2014 to test prospective areas indicated by 2011 field investigations.

OTHER PROPERTIES

Landore has other non-core exploration properties which include grass roots exploration and defined drill targets.

SOCIAL AND ENVIRONMENTAL RESPONSIBILITY

Landore believes that a successful project is best achieved through maintaining close working relationships with First Nations and other local communities. This social ideology is at the forefront of all of Landore's exploration initiatives by establishing and maintaining co-operative relationships with First Nations communities, hiring local personnel and using local contractors and suppliers.

Careful attention is given to ensure that all exploration activity is performed in an environmentally responsible manner and abides by all relevant mining and environmental acts. Landore takes a conscientious role in all of its operations, and is aware of its social responsibility and its environmental duty.

Michele Tuomi, P.Geo.

Exploration Manager, Landore Resources Canada Inc.

13 May 2013

Consolidated statement of comprehensive income

For the year ended 31 December 2012

		Group 31 December 2012 £	Group 31 December 2011 £
Exploration costs		(3,126,093)	(2,930,326)
Other income		8,255	3,913,447
Administrative expenses		(1,368,189)	(1,545,659)
Operating loss		(4,486,027)	(562,538)
Finance income		123,217	77,135
Loss before income tax		(4,362,810)	(485,403)
Income tax recovery		32,292	-
Loss for the year		(4,330,518)	(485,403)
Other comprehensive (loss) / income:
Exchange difference on translating foreign operations		(37,815)	83,269
Other comprehensive (loss)/ income for the year net of tax		(37,815)	83,269
Total comprehensive loss for year		(4,368,333)	(402,134)
Loss attributable to:
Equity holders of the Company		(4,330,518)	(485,403)
Total comprehensive loss attributable to:
Equity holders of the Company		(4,368,333)	(402,134)
Loss per share for losses attributable to the equity holders of the Company during the year
- basic		(0.014)	(0.002)
- diluted		(0.014)	(0.002)

The Group's operating loss relates to continuing operations.

 

Consolidated statement of financial position

As at 31 December 2012

		Group At 31 December 2012 £	Group At 31 December 2011 £
Assets
Non current assets
Property, plant and equipment		86,496	97,224
		86,496	97,224
Current assets
Loan receivable		4,178,142	4,249,129
Cash and cash equivalents		1,166,919	435,519
		5,345,061	4,684,648
Total assets		5,431,557	4,781,872
Equity
Capital and reserves attributable to the Company's equity holders
Share capital		3,462,838	2,637,103
Share premium		25,532,762	21,616,466
Share options		1,223,262	1,139,177
Accumulated deficit		(25,355,105)	(21,148,655)
Cumulative translation reserve		220,039	257,854
Total equity		5,083,796	4,501,945
Liabilities
Non current liabilities
Income tax liabilities		7,445	15,225
		7,445	15,225
Current liabilities
Trade and other payables		310,536	241,865
Income tax liabilities		29,780	22,837
		340,316	264,702
Total liabilities		347,761	279,927
Total equity and liabilities		5,431,557	4,781,872

 

Consolidated statement of changes in equity

For the year ended 31 December 2012

	Share capital £	Share premium £	Share options £	Warrants £	Accumulated Deficit £	Cumulative translation reserve £	Total £
Balance at 1 January 2011	2,371,853	17,951,320	834,958	143,659	(20,688,413)	174,585	787,962
Loss for the year	-	-	-	-	(485,403)	-	(485,403)
Other comprehensive loss for the year	-	-	-	-	-	83,269	83,269
Issue of ordinary share capital	265,250	3,687,250	-	-	-	-	3,952,500
Issue cost	-	(165,763)	-	-	-	-	(165,763)
Share warrant adjustment	-	143,659	-	(143,659)	-	-	-
Share option adjustment	-	-	304,219	-	25,161	-	329,380
Balance at 31 December 2011	2,637,103	21,616,466	1,139,177	-	(21,148,655)	257,854	4,501,945
Balance at 1 January 2012	2,637,103	21,616,466	1,139,177	-	(21,148,655)	257,854	4,501,945
Loss for the year	-	-	-	-	(4,330,518)	-	(4,330,518)
Other comprehensive loss for the year	-	-	-	-	-	(37,815)	(37,815)
Issue of ordinary share capital	825,735	4,059,778	-	-	-	-	4,885,513
Issue cost	-	(143,482)	-	-	-	-	(143,482)
Share option adjustment for lapsed options	-	-	84,085	-	124,068	-	208,153
Balance at 31 December 2012	3,462,838	25,532,762	1,223,262	-	(25,355,105)	220,039	5,083,796

Consolidated statement of cash flows

For the year ended 31 December 2012

		Group 31 December 2012 £	Group 31 December 2011 £
Cash flows from operating activities
Operating loss		(4,486,027)	(562,538)
Finance income		123,217	77,135
Depreciation of tangible fixed assets		25,624	31,047
Foreign exchange loss on non-cash items		(352,392)	(58,013)
(Increase)/decrease in debtors		11,351	(4,138,755)
Increase in creditors		476,131	197,253
Net cash outflow from operating activities		(4,202,096)	(4,453,871)
Cash flows from investing activities
Purchase of property, plant and equipment		(22,890)	(10,760)
Proceeds from sales of property, plant and equipment		5,971	-
		(16,919)	(10,760)
Cash flows from financing activities
Issue of ordinary share capital		4,885,513	3,952,500
Issue costs		(143,482)	(165,763)
Share options		208,153	329,380
		4,950,184	4,116,117
Net increase/(decrease) in cash and cash equivalents		731,169	(348,514)
Cash and cash equivalents at beginning of financial year		435,519	782,959
Exchange gain on cash and cash equivalents		231	1,074
Cash and cash equivalents at end of financial year		1,166,919	435,519

Notes to the financial statements

for the year ended 31 December 2012

1. Mineral properties - Group

	1 January 2012 £	Net expense in the period £	Accumulated expenditure at 31 December 2012 £	Option  income in    the period £	Accumulated expenditure at 31 December 2012 £
Junior Lake	9,945,130	3,111,651	13,056,781	(31,428)	13,025,353
Miminiska Lake	1,502,315	13,210	1,515,525	-	1,515,525
Frond Lake	73,858	1,375	75,233	-	75,233
Wottam	61,558	-	61,558	-	61,558
Lessard	701,678	26,245	727,923	-	727,923
Other, including Swole Lake and West Graham	49,961	5,040	55,001	-	55,001
	12,334,500	3,157,521	15,492,021	(31,428)	15,460,593

1.1     Junior Lake

Junior Lake is a nickel, copper, platinum group metals and iron, gold and lithium property located approximately 235 kilometres north of Thunder Bay in Northern Ontario, Canada. The property consists of 5 leased claims, and 133 staked mining claims, wholly owned by the Group.

A total of 8 claims in the original property block are subject to a 2 percent net smelter return ("NSR"). The Junior lake property encompasses the Swole Lake property block.

1.2     Miminiska Lake

Miminiska Lake, wholly owned by the Group, is a gold exploration project located approximately 115 kilometres east of Pickle Lake in Northern Ontario, Canada. The property consists of a southern block of 28 patented and 2 staked claims ("Miminiska Lake"), and a northern block consisting of 45 staked claims ("Keezhik Lake"). Both blocks are wholly owned by the Group.

1.3     Frond Lake

Frond Lake is a gold property located about 125 kilometres east of Pickle Lake in Northern Ontario, Canada. The property is comprised of 24 patented claims contiguous to the east of the Wottam property. The Frond Lake property claims are wholly owned by the Group subject to a 2 percent NSR to the original owners of the property.

1.4     Wottam

Wottam property is a gold property located 120 kilometres east of Pickle Lake in Northern Ontario, Canada. The property is wholly owned by the Group and includes 20 claims contiguous and between the Miminiska and Frond properties.

1.5     Lessard

Lessard is a zinc, copper property comprised of 57 mining claims located approximately 107 kilometres north of Chibougamau, in the province of Quebec, Canada. The property is wholly owned by the Group.

1.6     Swole Lake

Swole Lake is host to nickel, copper, platinum group metals, and lithium occurrences. The Swole Lake mining claim, wholly owned by the Group, is consolidated into the greater Junior Lake property. The Swole Lake claim is subject to a 2 percent NSR to the original holder of the claim.

1.7     West Graham

West Graham is a nickel, copper, platinum group metals property comprised of one patented claim wholly owned by the Group. The property is located 25 kilometres southwest of Sudbury and 1.5 kilometres east of the Lockerby nickel mine. On 21 November 2005, First Nickel Inc. optioned the property from the Group.  In 2010, First Nickel Inc. earned a 70 per cent interest with the possibility of earning a further 15 percent interest subject to certain conditions.

2.       Loss per share

The calculation of the basic loss per share is based on the loss for the financial year divided by the weighted average number of shares being 303,720,325 (2011: 234,806,648) in issue during the year.

The potential ordinary shares which arise as a result of the options in issue are not dilutive under the terms of IAS 33 because they would reduce the loss per share. Accordingly there is no difference between the basic and dilutive loss per share.

3.       Related party transactions

 Advances were received by Landore Resources Canada Inc. from Landore Resources Limited. These were unsecured, non interest bearing and repayable on demand.

Helen Green, a Director of the Company, is also a Director of Saffery Champness Management International Limited ("SCMIL") and Rysaffe International Services Limited ("Rysaffe"). SCMIL were paid £89,005 (2011: £65,683) in the period in respect of its role as administrators for the Company and Rysaffe was paid £10,000 (2011: £10,000) in respect of its role as Company Secretary. An amount of £13,366 (2011: £10,410) was owing to SCMIL at the year-end. The amount owing to Rysaffe at year end was £nil (2011: £nil). All transactions are at market value.

Landore Resources Canada Inc. paid management fees to a Director of the Company in the amount of C$35,000 (2011: C$35,000). At the year end, C$35,000 (2011: C$NIL) remains outstanding and has been included in trade payables.

At year end, advances and receivables are outstanding from Lamaune Iron Inc., a company under common control, in the amount of C$6,503,902 (2011: C$6,336,034). The equivalent sterling amount is £4,035,179.

On 6 March 2012, 3,350,000 shares were purchased at 7.5 pence per share by William Humphries, a Director of the Company. On 12 September 2012, a further 6,000,000 shares were purchased at 5 pence per share by William Humphries.

On 6 March 2012, 707,335 shares were purchased at 7.5 pence per share by Richard Prickett, a Director of the Company. On 12 September 2012, a further 506,040 shares were purchased at 5 pence per share by Richard Prickett.

On 12 September 2012, 400,000 shares were purchased at 5 pence per share by Charles Wilkinson, a Director of the Company.

The Group does not have any ultimate controlling party.

4.       Subsequent events

On 19 March 2013 the Group issued 16,700,000 new ordinary shares of 1 pence at a price of 5 pence per share to raise £835,000, of which 3,410,000 shares were issued to Directors of the Company.

5.       Publication of non statutory accounts

The financial information set out in this preliminary announcement does not constitute statutory accounts.

The balance sheet at 31 December 2012 and the profit and loss account, cash flow statement and associated notes for the year then ended have been extracted from the Group's 2012 statutory financial statements upon which the auditors' opinion is unqualified.

6.       Annual Report

The Annual Report for the year ended 31 December 2012 will be posted to shareholders today. The Annual General Meeting of the Company will be held at La Tonnelle House, Les Banques, St. Sampson, Guernsey GY1 3HS on Thursday, 20 June 2013 at 11.00 am.

Copies of the report are available from the Company's registered office at P O Box 141, La Tonnelle House, Les Banques, St Sampson, Guernsey GY1 3HS and also from the Company's website www.landore.com.

 

END

 

 

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