Significant Gold Discovery - Junior Lake

RNS Number : 9629T

Landore Resources Limited

04 April 2016

 

LANDORE RESOURCES LIMITED

(AIM Ticker: LND.L)

 

 

SIGNIFICANT GOLD DISCOVERY

JUNIOR LAKE PROPERTY

London, United Kingdom - April 4th 2016 - Landore Resources Limited (AIM:LND) ("Landore Resources" or "the Company") is pleased to report on a significant gold discovery on its Junior Lake Property, Ontario, Canada.

Highlights:

·     SIGNIFICANT GOLD DISCOVERY: Follow up drilling on the BAM East Gold Prospect, reported March 14 2016, has established the presence of a significant gold discovery. The gold mineralisation remains open along strike to the east and west and down dip.

·     IMPROVING WITH DEPTH: Drill hole 0416-519 intersected a wide gold mineralised zone of 40.75m at 1.82 grams/tonne (g/t) gold with two high grade intersections of 2.25m at 10.28g/t and 3.00m at 5.74g/t indicating that the mineralisation could be coalescing with depth. 

·     NEAR SURFACE: The +30 metres wide gold mineralisation, close to surface, has potential for the initial development to be progressed as a low cost, bulk tonnage, open pit operation.

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

"The highly prospective, relatively unexplored, greenstone belt which traverses Landore's flagship Junior Lake Property for over 30 kilometres east to west, continues to yield exciting new mineral discoveries. The BAM East Gold Prospect discovery has validated our exploration team's perseverance and dedication.

In addition, the discovery of this significant gold prospect just two kilometres to the east of our B4-7 Nickel-Copper deposit and one kilometre northwest of our VW Nickel deposit could provide a classic "two plus two equals five" bonus for Landore, with the obvious substantial cost saving synergies to be gained during their future development and operation." 

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 B4-7 Nickel-Copper-Cobalt-PGEs resource plus the Exploration Target and the Alpha Zone, the VW Nickel resource and numerous other highly prospective mineral occurrences including the BAM gold zone and the newly discovered BAM East Gold Prospect.

BAM East Gold Prospect:

This new gold prospect is located approximately midway along a 2.7 kilometre long, east-southeast to west-northwest trending MaxMin geophysical anomaly (MM-7), at the western end of which is located the historical BAM gold zone discovered by Landore in 2003.  MM-7 has not previously been drill tested.

Following the positive results from the two holes 0415-517/8 (reported 14^th March 2016), Landore remobilised to site to complete a drill program consisting of 5 NQ diamond drill-holes for a total of 564 metres (0416-519 to 523 with 521 abandoned) on lines 2450E, 2500E, and 2550E to test the east, west and down dip extension of the new gold zone.

Results of the above drilling include:

NS Line	Drill-hole	From	Interval*	Au
	No	Metres	Metres	g/t
2500E	0416-519	87.00	40.75	1.82
	including	87.00	0.82	6.94
	"	95.00	2.25	10.28
	"	107.25	3.00	5.74
	"	127.00	0.75	3.28
2550E	0416-520	37.02	25.66	1.36
	including	38.00	3.50	4.61
	and	61.62	1.06	3.96
2450E	0416-522	62.50	4.50	1.60
	and	76.28	6.87	2.04
2450E	0416-523	14.00	7.00	2.62
	including	17.50	0.58	19.70
	and	36.07	4.89	1.35
	and	46.00	1.00	5.07
	and	52.24	0.76	3.86

* Holes were drilled north at 45 degrees into a lithological package dipping approximately 40 degrees to the south.  The actual true thickness of mineralisation is estimated to represent between 90-95% of the intervals shown in the above table.

See attached Cross Section 2500E BAM East Gold Prospect.

http://www.rns-pdf.londonstockexchange.com/rns/9629T_-2016-4-1.pdf 

Drill hole 0416-519, drilled as a 50 metre step back to the discovery hole 0415-517, reported a marked improvement in width and grade over the overall mineralised gold reporting zone. In addition, the high grade intersections show that the mineralisation could be coalescing at depth.

Drill hole 0419-520, drilled as a 50 metre step to the east of 0415-517, reported similar width and grades to the discovery hole.

Drill hole 0419-522, drilled as a 50 metre step to the west of 0415-517, and drill hole 0416-523 drilled as a 50 metre step to the west of drill hole 0415-518, also reported similar grades to the discovery hole.

The latest drilling has extended the BAM East Gold Prospect over 100 metres along strike and to 100 metres down dip and remains open to the east and west along strike and at depth.

Planned Works: (as reported on the 14^th March)

BAM East Gold Prospect: A trenching and channel sampling program will be carried out along the 2.7 kilometre, east-southeast to west-northwest trending MaxMin geophysical anomaly (MM-7) in Q2. Further drilling will be planned in H2 to extend the new gold zone down dip and along strike to the east and west.

B4-7 Nickel-copper-cobalt-PGE Deposit: Landore has retained RPA Inc. (RPA) of Toronto, Canada, to conduct a review of the borehole EM (BHEM) geophysical information and drilling results from the recently-completed exploration program on the B4-7 deposit area with the aim of ascertaining the works required to bring the newly identified potential B4-7 mineralisation into the formal resource. The results from this review are expected by the end of Q2.

Geotechnical Studies: Landore is currently seeking quotations for the completion of a pre-feasibility standard pit design. This study will incorporate pit design parameters received from WSP Canada Inc. (reported 14^th March 2016, full report available on Landore's web site www.landore.com), and optimize the existing pit shell. This will allow the pit to be substantially deepened from the original 2013 design capturing far more of the ore whilst retaining the same stripping ratio.

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 B4-7 Nickel-Copper-Cobalt-PGEs resource plus the Exploration Target and the Alpha Zone, the VW Nickel resource and numerous other highly prospective mineral occurrences including the BAM gold zone and the newly discovered BAM East Gold Prospect.

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.

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, 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 Nickel Project. Landore Resources has mineral rights to 6 properties in eastern Canada.  The Company is headquartered in London, UK, 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                        Tel: [phone]

Strand Hanson Limited

Nominated Advisor and Broker

 

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