Interim Results

RNS Number : 2787S

Landore Resources Limited

23 September 2014

 



Landore Resources Limited

("Landore Resources" or "the Company")

Interim Results for the six months ended 30 June 2014

Excellent Progress on Junior Lake Nickel Project

Now Fully Funded for Follow Up Drilling

Highlights

·    Successful Placing -  oversubscribed at 2.5p per share  - raising £2.6 m to conduct follow up drilling on the exciting geophysical anomalies between B4-7 and VW nickel deposits on the Junior Lake property

·    Earlier geophysical survey identified significant potential sulphide mineralisation over previous drilling results

·    First follow up drilling campaign was completed in July and results confirm the extension of a significant copper/gold mineralised structure in the B4-7 East area of the Junior Lake property

·    Second drilling campaign has commenced in the VW area

Commenting on the results, Bill Humphries said:

"We are very encouraged by the progress we are making on our flagship Junior Lake Nickel Copper project and look forward to reporting further progress from our current drilling campaigns in the near future."

23^rd September 2014

For more information please contact:

Bill Humphries, Chairman Richard Prickett, Chief Executive Officer     Landore Resources Limited	Tel: [phone] Tel: [phone] www.landore.com
Angela Hallett / James Spinney Strand Hanson Limited Nominated Advisor	Tel: [phone]
Jon Belliss Hume Capital Securities plc	Tel: [phone]
David Bick	Tel: [phone]

Copies of the Interim statement are available on the website, www.landore.com 

LANDORE RESOURCES LIMITED

INTERIM STATEMENT

LANDORE RESOURCES LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS

FOR THE SIX MONTHS ENDED 30 JUNE 2014

General

The following discussion of performance, financial condition and future prospects should be read in conjunction with the interim consolidated financial statements of the Group and notes thereto for the period from 1 January 2014 to 30 June 2014.  All amounts are stated in sterling.

Overview

Landore Resources Limited is listed on the Alternative Investment Market in London, with the trading symbol LND.L. The Company is based in Guernsey in the Channel Islands and its 100% owned operating subsidiary, Landore Resources Canada Inc, is engaged in the exploration and development of a portfolio of precious and base metal properties in North America.

Results of Operations

The financial results for the six months to 30 June 2014 show a loss of £809,560 (2013: loss £1,546,309). These results were in line with expectations and as a result of the decreased exploration costs of £376,479

(2013: £887,465).

During the period under review £nil (2013: £835,000) was raised from the issue of shares.

On 7 July 2014 the Group announced that it had raised £2.6 million, before expenses as a result of an oversubscribed placing of new shares at a price of 2.5p per share. The Directors were very pleased with the high level of support from both existing and new shareholders. The Group is now fully funded for the follow up drilling on the exciting geophysical anomalies between B4-7 and VW nickel deposits on the Junior Lake property.

The Group has no debt but will continue to raise further equity as needed to carry out its exploration and development activities.

Mineral Exploration Activities

In the period under review the Group's activities have been almost entirely focused on the Junior Lake Nickel Project.

The Junior Lake property:

The Junior Lake property, 100% owned by Landore Resources, 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 resource, the recently-identified Exploration Target and the Alpha Zone.Junior Lake also contains the VW Nickel resource and numerous other highly prospective mineral occurrences.

B4-7 Nickel-Copper-Cobalt-PGEs Resource:

RESOURCE CLASS	VOLUME (tonnes)	GRADE (% NiEq)	Contained Metal (tonnes NiEq)
Indicated	2,695,000	1.24	33,248

Exploration Target

1,500,000 to 2,000,000

~1.24

~20,000

The report is compliant with the requirements of National Instrument 43-101 (NI 43-101). The resource remains open down plunge at depth and along strike to the west.

VW Nickel Resource:

RESOURCE CLASS	VOLUME (tonnes)	GRADE (% NiEq)	Contained Metal (tonnes NiEq)
Indicated	3,730,000	0.49	21,760
Inferred	720,000	0.49

The report is to NI 43-101 standards. The deposit remains open down plunge at depth and along strike to the east and to the west.

Works completed on the Junior Lake property to date have clearly demonstrated the existence of a geological environment that is favourable for the deposition of magmatic nickel-copper sulphide mineralisation. Based on geological signatures and available geological knowledge, this favourable environment is believed to exist along a strike length of approximately 10 kilometres. At its widest, the favourable rock sequences are in the order of 1,000 to 1,500 metres in thickness.

In January 2014, a second "Direct Current Induced Polarization" and "Magnetotellurics" (DCIP+MT) ground geophysical survey was conducted on the Junior Lake property by Quantec Geoscience, of Toronto, Canada ("Quantec") over the B4-7 and VW Nickel Trends. The survey block spans 3,400m x 2,200m from grid line 300E to 3700E and line 700N to 1500S, and is located directly adjacent to the east of the highly successful 2012 ORION 3D DCIP+MT survey block covering the B4-7 and Scorpion Zone.

Previous exploration drilling between the B4-7 and VW deposits intersected promising base and precious metal mineralisation with numerous + 0.30% nickel intersections including 2.50 metres at 0.39% nickel in drill-hole 0411-288 and 1.50 metres at 0.33% nickel in drill-hole 0411-289. In addition, drilling intersected 0.75 metres at 26.1g/t gold in drill-hole 0409-252, 1.4 metres at 662ppb platinum and 1,888ppb palladium in drill-hole 0406-64, and 0.5 metres at 2.23% copper in drill-hole 0409-247. These results  encouraged Landore to perform the DCIP+MT survey over this large area to assist in drill targeting before further drilling was conducted.

The DC resistivity geophysical results have identified significant potential sulphide mineralisation below the majority of the above exploration drilling, substantiating Landore's belief that drilling to date had merely intersected the top of this system. These compelling findings, along with identified potential mineralisation near-surface, warrant follow-up drilling.

B4-7 East

In July 2014 a preliminary drill programme, consisting of 16 drill holes (0414-477 to 0414-492) for 4,201 metres, was completed over the prospective area from the B4-7 Nickel-Copper-Cobalt-PGEs deposit  eastwards for 1,500 metres to line 2100E. This drilling successfully intersected a significant copper/gold mineralised structure extending eastwards from B4-7 Copper - Cobalt - PGEs deposit for 1,000 metres.

Drilling results to date are :

Drill-hole	From	Width*	Ni	Cu	Co	Pd	Pt	Au
No	Metres	Metres	%	%	%	ppb	ppb	ppb
0414-478	183	6.75	0.31	0.07	0.02	1,016	196	5
including	189	0.75	1.28	0.27	0.07	2,960	164	12
0414-478	245.37	0.26	0.94	0.10	0.05	130	53	23
0414-479	292.38	1.42	0.21	1.42	0.01	185	30	105
0414-482	174.50	1.00	0.14	1.15	0.02	136	38	187
And	200.74	0.69	0.29	0.93	0.02	131	21	2,150
And	226.20	0.80	0.09	1.14	0.01	20	7	76
0414-485	61.00	5.00	0.25	0.33	0.01	497	100	48
0414-489	6.28	3.02	0.32	0.95	0.02	533	123	134
Including	6.28	1.02	0.22	1.64	0.01	339	73	345
0414-491	137.00	1.00	0.09	1.25	0.01	93	12	54

*The actual true thickness of mineralisation is estimated to represent between 60-70% of the intervals shown in the above table. Results are pending for drill- hole 0414-492.

Drilling has confirmed the extension of a significant copper/gold mineralised structure previously delineated from line 900W in the Scorpion zone eastwards adjacent to the B4-7. Values as high as 5.49% copper over 0.77 metres in drill-hole 0412-368 and 26.1g/t gold over 0.75 metres in drill-hole 0406-252 have been intersected by previous drilling. This copper/gold mineralisation is commonly hosted in foliated to sheared gabbro and leucogabbro.

This drill programme, conducted during July and August 2014, confirmed the extension of this copper/gold trend through to line 1600E, with a further 500 metres potential strike length indicated by historical drill hole S-5 on line 2100E with 0.21 metres at 8.97% Cu, giving an overall potential strike extension of 3.0 kilometres. 

The drilling also intersected elevated polymetallic mineralisation on line 1200E with drill-hole 0414-485 returning 5 metres at 0.25% Ni, 0.33% Cu, 0.01% Co, 497ppb Pd, 100ppb Pt, and 48ppb Au from 61 metres down-hole which together with previous highly encouraging trench results on line 1350E holds potential for near-surface, economic polymetallic mineralisation which would provide added value to the B4-7 deposit.  Further drilling is necessary to ascertain the scope of this near-surface polymetallic mineralisation.

The results of this preliminary drill programme are currently being collated to determine what additional works are required to interpret the geological and mineralogical trends of the highly prospective B4-7 East Zone.  Once completed, a drill programme will be designed to follow up on these promising areas.

Planned works:

The above area drilled is the first of three target areas containing 9 distinct geophysical anomalies as identified by the January 2014 3D DCIP + MT ground geophysical survey.

A second 4,000 metre drill programme has commenced, designed to test prospective targets identified in the VW West and BAM East areas by the December 2013 ground Electromagnetic (MaxMin), VLF and Magnetic geophysical surveys, as well as the January 2014 3D DCIP + MT ground geophysical survey.

Further information on Landore's projects can be viewed on the website, www.landore.com.

LANDORE RESOURCES LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2014

                                                                                                                         Group                     Group

                                                                                                      Six months ended  Six months ended

                                                                                                             30 June 2014         30 June 2013

                                                                                     Notes                                  £                             £        

Exploration costs	2		(376,479)		(887,465)
Other Income			1,462		-
Administrative expenses			(468,664)		(687,268)
Operating loss			(843,681)		(1,574,733)
Finance income			34,121		60,914
Loss before income tax			(809,560)		(1,513,819)
Income tax expense			-		(32,490)
Loss for the period			(809,560)		(1,546,309)
Other comprehensive (loss)/income:
Exchange difference on translating foreign
operations			(171,953)		61,638
Other comprehensive (loss)/income for the period
net of tax			(171,953)		61,638
Total comprehensive loss for the period			(981,513)		(1,484,671)
Loss attributable to:
Equity holders of the Company			(809,560)		(1,546,309)
Total comprehensive loss attributable to:
Equity holders of the Company			(981,513)		(1,484,671)
Loss per share attributable to the
equity holders of the Company during the period
- basic & diluted	3		(£0.002)		(£0.004)

The Group's operating loss relates to continuing operations.

The notes and accounting policies on pages 9 to 10 form part of these interim financial statements.

LANDORE RESOURCES LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2014

	Share capital £	Share premium £	Share options £		Retained earnings £	Cumulative translation reserve £	Total £
Balance at 1 January 2013	3,462,838	25,532,762	1,223,262		(25,355,105)	220,039	5,083,796
Loss for the year	-	-	-		(1,546,309)	-	(1,546,309)
Other comprehensive gains in the year	-	-	-		-	61,638	61,638
Issue of ordinary share capital	167,000	668,000	-		-	-	835,000
Issue costs	-	(16,900)	-		-	-	(16,900)
Share option adjustment	-	-	(247,357)		302,203	-	54,846
Balance at 30 June 2013	3,629,838	26,183,862	975,905		(26,599,211)	281,677	4,472,071
Balance at 1 January 2014	4,134,838	26,653,862	707,775		(27,126,179)	(152,162)	4,218,134
Loss for the year	-	-	-		(809,560)	-	(809,560)
Other comprehensive losses in the year	-	-	-		-	(171,953)	(171,953)
Issue of ordinary share capital	-	-	-		-	-	-
Issue costs	-	-	-		-	-	-
Share option adjustments	-	-	(11,262)		20,290	-	9,028
Balance at 30 June 2014	4,134,838	26,653,862	696,513		(27,915,449)	(324,115)	3,245,649

The accounting policies and notes on pages 9 to 10 form part of these financial statements.

LANDORE RESOURCES LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2014

                                                                                      Group                       Group                       Group

                                                                                        As at                        As at                         As at

                                                                          30 June 2014            30 June 2013 31 December 2013

                                                       Notes                             £                               £                               £

Assets
Non current assets
Property, plant and equipment				61,312	91,175			72,225
Investments Trade and other recievables	6			75,740 3,404,162	- -			- -
				3,541,214	91,175			72,225
Current assets
Trade and other receivables	6			21,846	4,140,791			3,834,913
Cash and cash equivalents				89,380	505,367			699,633
				111,226	4,646,158			4,534,546
Total assets				3,652,440	4,737,333			4,606,771
Equity
Capital and reserves attributable to the Company's equity holders
Share capital	4		4,134,838		3,629,838		4,134,838
Share premium	4		26,653,862		26,183,862		26,653,862
Share options			696,513		975,905		707,775
Retained earnings	5		(27,915,449)		(26,599,211)		(27,126,179)
Cumulative translation adjustment				(324,115)	281,677		(152,162)
Total equity				3,245,649	4,472,071			4,218,134
Liabilities
Non current liabilities
Income tax liabilities				-	3,750			-
				-	3,750			-
Current liabilities
Trade and other payables				373,848	227,764			354,505
Income tax liabilities				32,943	33,748			34,132
				406,791	261,512			388,637
Total liabilities				406,791	265,262			388,637
Total equity and liabilities				3,652,440	4,737,333			4,606,771

The notes and accounting policies on pages 9 to 10 form part of these interim financial statements.

LANDORE RESOURCES LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2014

		Group Six months ended 30 June 2014 £	Group Six months ended 30 June 2013 £
Cash flows from operating activities
Operating loss		(843,681)	(1,574,733)
Finance income		218,094	60,914
Depreciation of tangible fixed assets		8,326	12,055
Foreign exchange gain on non-cash items		(35,799)	51,076
Share options		9,028	54,846
Decrease in receivables		14,085	37,351
Increase/(decrease) in payables		18,155	(82,499)
Net cash outflow from operating activities		(611,792)	(1,440,990)
Cash flows from investing activities
Purchase of property, plant and equipment		-	(16,179)
		-	(16,179)
Cash flows from financing activities
Issue of ordinary share capital		-	835,000
Issue costs		-	(16,900)
		-	818,100
Net decrease in cash and cash equivalents		(611,792)	(639,069)
Cash and cash equivalents at beginning of financial year		699,633	1,166,919
Exchange gain/(loss) on cash and cash equivalents		1,539	(22,483)
Cash and cash equivalents at end of financial period		89,380	505,367

The notes and accounting policies on pages 9 to 10 form part of these interim financial statements

LANDORE RESOURCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2014

1          Basis of accounting and accounting policies

The financial statements have been prepared in accordance with those International Financial Reporting Standards ("IFRS") and International Financial Reporting Interpretations Committee ("IFRIC") interpretations issued and effective or issued and early adopted as at the time of preparing these financial statements (August 2014).

The financial statements have not been audited and have been prepared on the historical cost basis. The principal accounting policies adopted are consistent with those adopted in the audited annual accounts to 31 December 2013.

2          Exploration expenditure and mineral properties

                                                                                                   Net      Accumulated                          

                                                              1 January       Expenditure       expenditure

                                                                      2014             in period     30 June 2014                                            £            £                                                              £                          

Junior Lake/Lamaune Lake	14,258,509		370,104		14,628,613
Miminiska Lake	1,517,386		1,042		1,518,428
Lessard	696,164		-		696,164
Frond Lake	77,981		1,186		79,167
Wottam	61,558		-		61,558
Other/including Swole Lake and West Graham	55,794		4,148		59,832
	16,667,392		376,479		17,043,762

            Mineral properties at 30 June 2014 represent accumulated costs to date incurred by Landore Resources Canada Inc., a subsidiary of Landore Resources Limited. On acquisition of Landore Resources Canada Inc. on 5 April 2006 the fair value of those costs incurred to date was considered to be £Nil. All subsequent expenditure in the period has been charged to the income statement in accordance with the group accounting policy.

3          Loss per share

The loss per share is based on the loss for the period and the weighted number of ordinary shares in issue during the period, being 413,483,825 (2013: 356,617,527).

Diluted loss per share

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 not increase the loss per share. Accordingly there is no difference between the basic and dilutive loss per share.

4          Share capital

                                                                                                                          30 June        1 January 

                                                                                                                               2014                2014

                                                                                                                                     £                      £

Issued:
413,483,825 ordinary shares of 1 pence each		4,134,838		4,134,838

                                                                                                                      Ordinary                  Share

                                                                                                                         shares             premium

                                                                                                                            2014                   2014

                                                                                                                                  £                         £

At 1 January 2014 and 30 June 2014		4,134,838		26,653,862

5          Profit and loss reserve

                                                                                                                                                 £

At 1 January 2014				(27,126,179)
Loss for the period				(809,560)
Transfer from share options reserve				20,290
At 30 June 2014				(27,915,449)

6          Trade and other receivables

On 30 April 2014 Landore Resources Canada Inc (Landore Canada) and Lamaune Iron Inc (Lamaune) agreed to amend the terms of the Original Loan Agreement, pursuant to a Loan Amendment Agreement as follows:

(a)  The original promissory note dated 10 June 2011 was amended and a new promissory note in the amount of £3,404,162 (C$6,200,000) was issued, repayable on 30 April 2019;

(b)  The Security Agreement issued pursuant to the Original Loan Agreement was unamended;

(c)  Total interest accrued up to 30 April 2014 was paid, satisfied by a mixture of cash and an interest in the share capital of Lamaune and no interest accrued on the loan after that date;

(d)  Landore Canada has the right to convert the loan into common shares of Lamaune pursuant to a Going Public Transaction or in the event of a Joint Venture Transaction; and

(e)  In consideration of the amendments provided in the Loan Amendment Agreement, Lamaune issued warrants to Landore Canada to purchase common shares of Lamaune equal to the Black-Scholes valuation of the warrants equal to the discount recorded by Landore Canada estimated to be approximately £494k (C$900,000) (at a discount rate of 3%).

 

END

 

 

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