Update on BAM East Gold Project

RNS Number : 3137J

Landore Resources Limited

28 June 2017

 

 

 

LANDORE RESOURCES LIMITED

("Landore Resources" or "the Company")

(AIM Ticker: LND.L)

 

PROGRESS REPORT

BAM EAST GOLD PROJECT

JUNIOR LAKE PROPERTY

London, United Kingdom - June 28, 2017 - Landore Resources Limited (AIM:LND) ("Landore Resources" or "the Company") is pleased to provide this progress report on extension and infill drilling of the BAM East Gold Project on its Junior Lake Property, Ontario, Canada ("BAM East Gold Project").

Highlights:

·     Drilling results continue to report wide zones of gold mineralisation including high grade intersections with drill Hole 0417-574 reporting 18.79 metres (m) at 3.65 grams per tonne gold (g/t) including 2.99 metres at 12.25 g/t gold and 4.2 metres at 5.08 g/t gold.  

·     The BAM East Gold Deposit, Central Zone, has now been confirmed over 1,000 metres of strike length from 2000E to 3000E and remains open down dip, to the east and to the west along strike.

·     Drilling has also confirmed the BAM East Gold lithology over 2,550m of strike length from 950E to 3,500E along the highly prospective east-southeast to west-northwest trending MaxMin geophysical anomaly (MM-7), also remaining open to the east and west along strike.

Spring/Summer Drilling Campaign:

The Spring/Summer drilling campaign is nearing completion with 59 HQ and NQ diamond drill-holes (0417-561 to 0417-619), for a total of 9,920 metres (m), drilled to date. Drilling has proceeded as planned on time and within budget. The processing of the core, including logging, sampling and assaying, is ongoing and results will be reported when received and collated.  

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

"I am very pleased with the results to date from this current drilling campaign steadily advancing the Inferred resource to Indicated Category together with extending the delineated resource to the east and west to 1,000 metres in length. Indications are that the BAM East Gold deposit has the potential for substantial growth.

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In addition, over the past 6 months Landore has completed a review of all previously discovered gold occurrences along the 30 kilometre, east to west, highly prospective, Greenstone belt which traverses Landore's flagship Junior Lake Property and the neighbouring Lamaune Iron Inc. property. 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 highlighting the potential for other similar deposits along this trend.

Landore will commence an extensive exploration and Geophysics campaign along this trend upon completion of the drilling programme aimed at identifying additional gold prospects.

To date results have been received for 14 drill holes.

Results not previously reported include the following:

Easting	Northing	Drill-hole	From	Interval*	Au
		No	Metres	Metres	g/t
2200E	20N	0417-565	231.61	2.0	2.19
		and	254.61	9.00	2.14
2150E	75N	0417-566	167.53	8.17	1.42
		and	206.33	15.37	1.05
2000E	170N	0417-570	166.00	5.36	0.95
2000E	120N	0417-571	203.64	17.36	1.82
		including	214.00	1.00	22.20
2400E	75S	0417-572	234.00	5.00	1.54
2450E	10S	0417-574	106.74	5.76	1.25
		and	166.61	18.79	3.65
		including	166.61	2.99	12.25
		including	168.60	1.00	23.80
		including	181.20	4.20	5.08

* Holes 0416-572 and 574 were drilled north at 56 and 52  degrees respectively with the remainder 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 80-90% of the intervals shown in the above table.

BAM East Gold Resource:

Discovered in December 2015, the BAM East Gold resource contains 301,000 ounces of gold (February 2017 National Instrument (NI) 43-101 Mineral Resource Estimate and Technical Report). This resource 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 resources in 2003.

BAM East gold mineralisation is a typical shear hosted gold bearing system in an Archaean greenstone belt. Findings from exploration drilling on the BAM East Gold Prospect have revealed a lithological sequence consisting of leucogabbro rocks of the Grassy Pond Sill to the south, metasedimentary rocks in the central portion, to mafic volcanics to the north. All lithological units have been subjected to variable shearing and deformation, markedly the metasedimentary unit.

The gold mineralisation revealed to-date is predominantly contained in the metasediments, with some gold mineralisation occurring in the leucogabbro rocks. Visible gold occurs within or near quartz veinlets which are controlled by a shear system.

Spring/Summer Drilling Campaign:

Drilling on the BAM East Gold Project re-commenced April 1 2017 focussing on the further delineation and extension of the defined resource together with targeting potential deposits on the highly prospective geophysical trend MM-7, host to the BAM East Gold Deposit.

Drilling has included 35 HQ and 11 NQ diamond drill holes, for 6329 and 1536 metres respectively, aimed at advancing the Inferred portion of the existing resource zone to Indicated status  to extend it to the east and west and down dip.

In addition, 13 NQ diamond drill holes for 2,055 metres have been drilled further to the east and west along strike from the resource to test the highly prospective geophysical trend MM-7.

All drill-holes completed to date have successfully intersected similar lithology to the Central Zone Resource with visible gold (VG) frequently seen in the core.

There are 5 more holes to drill before the completion of this program after which all data will be collated for the preparation of a resource update scheduled for completion in Q4 2017.

Exploration Potential:

Gold mineralisation has been reported in drilling and rock sampling by Landore's exploration teams or from historical findings from a multitude of sites within the greater Junior Lake property generally contained within the east-west Archaean greenstone belt which traverses the property for 19 kilometres (km) though the Landore property and for an additional 11 km to the west through the adjacent Lamaune Iron property in which Landore holds a significant interest.

From 2007 to 2011 Landore conducted a property wide exploration program of reconnaissance mapping, prospecting, trenching and drilling which identified several prospective gold occurrences in various locations along the east west belt including; Toronto Lake prospect 10km east of the BAM East Gold deposit reporting up to 2.62 g/t Au over 0.78m from trench sampling and 71.69g/t grab sample from a blast pit; The Whale Zone prospect located 1km west of the BAM East deposit reporting 26.1g/t over 0.75m in drill hole 0409-252; Felix Lake prospect located 5km to the west of the BAM East deposit where drilling intersected similar lithology with  anomalous gold.

In 2008 Landore reported a gold discovery on its then-owned Lamaune property located approximately 10 kilometres to the west of the BAM East Gold Deposit in the vicinity of the Lamaune Iron Deposit. Landore subsequently drilled 11,644 metres on the gold occurrence during 2009/10 with drilling intersecting narrow vein high grade gold and wide zones of lower grade mineralisation. The broad zone was intersected over 500 metres of strike extent and to a depth of 200 metres. The zone remains open at depth and to the east along strike.

A conceptual model defined an initial exploration target of 1,350,000 to 1,650,000 tonnes of mineralised material containing between forty to fifty thousand ounces of gold at a cut-off grade of 0.3 grams per tonne gold. Petrographic analysis showed the gold to be "free gold".

Landore subsequently de-merged Lamaune Iron and Gold properties into a separate unlisted Company "Lamaune Iron Inc." in which Landore has retained a significant interest.

Following the successful discovery of the BAM East Gold prospect in late 2015, Landore initiated a review of the geology and mineralisation on several of Landore'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 review has encouraged Landore's belief that the favorable geological lithology containing the BAM East Gold Deposit has the potential to continue along the 30 kilometre east west extent of the greenstone belt traversing the Landore-Lamaune properties.

Planned Works:

Following the completion of the current drilling campaign Landore will commence an extensive field exploration programme including geophysics to locate the highly prospective northern extent of the Grassy Pond Sill to the east and west of the BAM East Gold Deposit.

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.

- 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

James Spinney / Jack Botros                          Tel: [phone]

Strand Hanson Limited

Nominated Advisor and Broker

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

 

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