Progress Report - BAM Gold Deposits

RNS Number : 8062U

Landore Resources Limited

17 July 2018

 

 

 

LANDORE RESOURCES LIMITED

("Landore Resources" or "the Company")

(AIM Ticker: LND.L)

 

PROGRESS REPORT

BAM GOLD DEPOSITS

JUNIOR LAKE PROPERTY

London, United Kingdom - 17 July 2018 - Landore Resources Limited (AIM:LND) ("Landore Resources" or "the Company") is pleased to provide this progress report on the BAM Gold Deposits on its Junior Lake Property, Ontario, Canada ("BAM Gold Deposits").

Highlights:

·     The current drilling campaign, concentrating within the 900 metre gap between the existing BAM Gold deposits, has successfully intersected widespread gold mineralisation of similar grade to these two deposits with multiple instances of visible gold ("VG"). Drilling has been completed for every 100 metres along strike from 1100E to 1900E, from near surface to approximately 125 metres vertical depth.

·     Drilling is continuing in this area with 50 metre step back holes on each 100 metre line to test the potential depth extension to 250 metres below surface.  The BAM Gold Deposits remain open to the east, west and down dip, providing additional exploration potential to target for future drilling on Junior Lake.

·     Engineering consultants have been appointed to complete a Mineral Resource Estimate update at the conclusion of the current drilling programme, scheduled for completion in Q3 2018. The updated Estimate will form the basis for a Preliminary Economic Assessment for completion Q1 2019.

Commenting on this report, Chief Executive Officer of Landore Resources, Bill Humphries, said:

"The success of the current drilling programme extends the mineralisation of the BAM Gold Deposits along strike having the potential of significantly enlarging the size of the preliminary open pit.

Landore Resources has appointed a team of technical consultants to complete a Mineral Resource Estimate update followed by a Preliminary Economic Assessment."

Summer Drilling Campaign:

The summer drill programme of 12,000 metres is progressing on schedule with 23 NQ diamond drill holes (0418-626 to 0418-648) for 3,731 metres and 13 HQ diamond drill holes (0418-649 to 0418-661) for 3,372 metres completed to date. Results have been received for 24 drill holes with results pending for the remainder. Results will be reported when received and collated.

Results not previously reported include:

Easting	Northing	Drill-hole	From	Interval*	Au
		No	Metres	Metres	g/t
1100E	300N	0418-627	209.04	3.81	1.94
1200E	300N	0418-648	164.88	6.33	1.88
		and	184.52	9.63	0.93
		and	208.05	7.55	1.17
1300E	400N	0418-630	21.00	17.65	0.71
1300E	300N	0418-632	143.07	6.15	1.32
1400E	375N	0418-633	108.57	2.43	3.99
1400E	325N	0418-634	84.50	10.58	2.03
		including	90.47	1.00	16.15
1400E	275N	0418-647	133.12	12.82	1.12
1500E	340N	0418-635	57.40	5.55	1.55
1500E	290N	0418-636	128.51	3.72	1.63
1600E	340N	0418-637	49.77	4.87	1.41
1700E	325N	0418-639	60.78	5.62	0.95

* The above drill holes were drilled north at 45 degrees into a lithological package dipping approximately 80-70 degrees to the south. The actual true thickness of mineralisation is estimated to represent between 70-80% of the intervals shown in the above table.

BAM Gold Deposits Update:

Previous drilling delineated gold resources at the BAM East Gold Deposit and the original BAM Gold deposit. However the area between the two deposits of approximately 900 metres length remained largely untested.

The current in-fill drilling programme has drilled every 100 metres within the above area from 1200E to 1900E, from near surface down to approximately 125 metres vertical, and has intersected widespread gold mineralisation of similar grade to the two deposits with multiple instances of VG.

The above deposits remain open to the east, west and down dip, providing additional exploration potential to target for future drill programmes on Junior Lake.

Planned Works:

Drilling will continue in the above 900 metre area with 50 metre step back holes on each 100 metre line to test their potential depth extension to 250 metres below surface. Once completed, the drilling will concentrate in the highly prospective eastern and western extension areas.

Mineral Resource Estimate Update and Preliminary Economic Assessment:

CUBE Consulting ("CUBE") of Perth, Western Australia, has been appointed to update the Mineral Resource Estimate ("MRE") and prepare a Technical Report for the BAM Gold Deposits following completion of the current drilling campaign.

CUBE will also prepare a preliminary Mineral Resource block model suitable for ongoing mining and economic studies together with a preliminary pit optimisation.  CUBE completed a site visit during June 2018.

The updated MRE together with the preliminary pit optimisation will form the basis for the proposed Preliminary Economic Assessment ("PEA").

WSP of Sudbury, Canada, have been appointed to complete a Geotechnical Study and Report- Prefeasibility Pit Design Parameters-for the BAM Gold Deposits.

WSP has previously completed a similar report for the B4-7 Nickel-Copper-Cobalt-PGEs deposit located just 2 kilometres to the south west of the BAM Gold Deposits, and in April of 2018 completed a Geotechnical and Structural Assessment of the BAM East Gold Deposit.

WSP completed a site visit in June 2018. Drilling for geotechnical purposes was completed during the site visit.

BASE Labs ("BASE") of Kamloops, Canada, has been appointed to complete PEA level metallurgical test-work as a key part of the ongoing development of the BAM Gold Deposits.

A detailed test-work programme has been designed to select the most suitable final processing route for the BAM mineralisation before progressing past the current PEA level study and to have a series of preliminary reagent consumption and power cost/consumption estimates for the PEA study.

The test-work programme is designed to test heap leach amenability at different crush sizes, cyanide extractive test-work on both primary feed and gravity concentrates, flotation and gravity separation tests, screen sizing analysis, Mineral liberation analysis on gravity concentrates plus grinding and abrasive work.

In June 2018, two HQ sized diamond drill holes were completed from which 854 kilogrammes of whole core was sampled and dispatched to BASE laboratories.

About the BAM East Gold Resource:

Discovered in December 2015, the BAM East Gold resource contains 400,000 ounces of gold

Category	Tonnes (000 t)	Grade (g/t Au)	Contained Au (000 oz)
Indicated	7,413	1.37	326
Inferred	1,662	1.39	74

(January 2018 National Instrument 43-101 Mineral Resource Estimate and Technical Report). 

In Summer 2017, Landore Resources completed a drilling campaign on the BAM East Gold Deposit. The campaign successfully infilled much of the Inferred portion of the existing Mineral Resource zone and extended its potential strike length from the delineated 700 m to approximately 1,100 m.  The BAM East Gold Deposit remained open along strike to the east and west, and down dip.

In addition, drilling at BAM West (the original BAM Zone), located approximately 900 metres along strike to the west, successfully intersected additional gold mineralisation with similar lithology and grades to the BAM East Gold Deposit.  The limits of the BAM West mineralisation remained undefined along strike to the east, west, and down dip.

The BAM Gold Deposit 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 Sill and the BAM Sequence.  The host rock units strike in an east-southeast direction (average of azimuth 105°) and dip steeply to moderately to the south at 70 to 75 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.

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 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 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, 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: [phone]

Richard Prickett, Finance Director                   Tel: [phone]

Landore Resources Limited                              www.landore.com

Angela Hallett / James Spinney / Jack Botros  Tel: [phone]

Strand Hanson Limited

Nominated Advisor

Neil McDonald / Beth McKiernan / Peter Lynch    Tel: [phone]

Cenkos Securities plc

Broker

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No 596/2014.

 

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