Update on BAM East Gold Prospect

RNS Number : 9903M

Landore Resources Limited

20 October 2016

 

LANDORE RESOURCES LIMITED

(AIM Ticker: LND.L)

 

 

DRILLING RE-COMMENCES

BAM EAST GOLD PROSPECT

JUNIOR LAKE PROPERTY

London, United Kingdom - October 20th 2016 - Landore Resources Limited (AIM:LND) ("Landore Resources" or "the Company") is pleased to advise that resource and extension drilling has recommenced on the BAM East Gold prospect on its Junior Lake Property, Ontario, Canada ("BAM East Gold Prospect").

Drilling:

·     Drilling has re-commenced on the exciting BAM East Gold Prospect. The programme will consist of 10 HQ and 7 NQ diamond drill holes for 4,000 metres, to expand the newly defined central zone and to test highly prospective targets along the remaining 2.7 kilometre MM-7 geophysical trend respectively.

·     The first two HQ holes completed, drilled to extend lines 2350E and 2400E a further 50 metres down dip, have intersected the same lithology as the higher holes with visible gold sighted. The core is currently being processed for assaying.

·     Longitudinal sections show the central zone to be plunging to the West with the width and gold content improving at depth (see attached plots A and B).

Trenching:

·     Sampling of trench 0416-01T at 1600E, located 700m to the west and along trend to the central zone, has intersected the same lithology with gold mineralisation up to 0.66 grams/tonne (g/t).

·     In addition, Drill hole 0416-545 drilled approximately 60m down dip to Trench 0416-01 has also intersected the same lithology together with gold mineralisation up to 1.49g/t, potentially extending the BAM East Gold Prospect to 1100 metres along strike (1600E to 2700E).

Petrographic Studies:

·     Seven samples from the winter and summer drilling campaigns on the central zone were submitted for petrographic studies, two of which reported significant native gold in both the (+) 100 micron and the (-) 100 micron size (see attached photo C).

·     No sulphides were associated with the precious metals.

Gold Screen Metallics versus Fire Assay analysis:

·     An independent report on the results determined that, overall the gold distribution does not appear to be very "nuggety" since gold is in both the fine and coarse screen fractions, and the screen metallic assays correlate reasonably well with the fire assays.

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

"The BAM East Gold Prospect is rapidly developing into a significant new gold discovery for Landore Resources, enjoying very low discovery costs per ounce, favourable mineralogy potentially providing a simple processing path with maximum recoveries and low capex opex costs"

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 BAM East Gold Prospect, the BAM gold zone, the B4-7 Nickel-Copper-Cobalt-PGEs resource, the VW Nickel resource and numerous other highly prospective mineral occurrences including three Lithium occurrences.

BAM East Gold Prospect:

This new gold prospect is located midway along the geophysics conductor MM-7 approximately 2,000 metres east of the B4-7 Nickel-Copper-Cobalt deposit. Widespread gold mineralisation was intersected in drill-hole 0415-517 in December 2015 whilst testing the geophysical conductor MM-7 for base metals.

To date, 30 NQ diamond drill-holes (0415-517 to 0416-545), for a total of 4850 metres, have been drilled on the BAM East Gold Zone.

Plotted long sections show the Central zone to be plunging to the West with the width and gold content improving at depth (see attached plots A and B).

Plot A

http://www.rns-pdf.londonstockexchange.com/rns/9903M_-2016-10-19.pdf 

Plot B

http://www.rns-pdf.londonstockexchange.com/rns/9903M_1-2016-10-19.pdf 

Fall Drill Campaign:

Drilling has re-commenced on the exciting BAM East Gold Prospect. The program will consist of 10 HQ and 7 NQ diamond drill-holes for 4,000 metres, to expand the newly defined Central zone, and to test highly prospective targets along the remaining 2.7 kilometre MM-7 geophysical trend respectively.

Trenching:

A trenching and channel sampling programme has been completed along the 2.7 kilometre, east-southeast to west-northwest trending MaxMin geophysical anomaly ("MM-7") and along the parallel geophysical anomaly ("MM-18") located approximately 200 metres to the north of MM-7.

Due to the excessive depth of glacial overburden along MM-7 only trench 0416-01T, located at 1600E, 700m to the west and along trend to the central zone, was completed with sawn-channels intersecting the same lithology with wide spread, low grade gold mineralisation of up to 0.66 grams/tonne (g/t).

Drill hole 0416-545 was drilled approximately 60m down dip to trench 0416-01T also intersecting the same lithology together with gold mineralisation up to 1.49g/t, potentially extending the BAM East Gold Prospect to 1100 metres along strike (1600E to 2700E).

A planned drill-hole is included in this current campaign to test the lithology and mineralisation approximately120 metres below the above drill-hole.

Petrographic Studies:

Seven samples from the winter and summer drilling campaigns on the central zone were submitted for petrographic studies, two of which reported significant native gold in both the (+)100 micron and the (-)100 micron size (see attached photo C). No sulphides were associated with the precious metals.

Photo C

http://www.rns-pdf.londonstockexchange.com/rns/9903M_2-2016-10-19.pdf

Gold Screen Metallic versus Fire Assay analysis:

217 drill core samples representing a wide range of gold grades returned by Landore Resource's standard ore grade gold analysis (ALS Minerals analytical package Au-AA26) were submitted for gold screen metallic testing (ALS Minerals analytical package Au-SCR24) to check reproducibility of gold assays. These results were forwarded to an independent consultant for analysis.

The independent consultant's findings are as follows:

·     Overall, the screen metallic assays correlate reasonably well with the fire assays, except that the fire assays are higher on average than the metallic assays for values greater than approximately 3 g/t Au.

·     The 38 fire assays greater than 3 g/t Au average 8.55 g/t and the equivalent metallic assays average 6.68g/t (22% lower).

·     The 178 fire assays less than 3 g/t Au average 0.81 g/t Au and the equivalent metallic assays average 0.86g/t (6% higher).

·     For all 216 samples, fire assays average 2.17 g/t and the equivalent metallic assays average 1.89 g/t (13% lower).

·     Overall, 34% of the gold is in the coarse fraction and 66% is in the fine fraction, although proportions are quite variable.

·     Overall, the gold distribution does not appear to be very "nuggety" since gold is in both the fine and coarse screen fractions, and the screen metallic assays correlate reasonably well with the fire assays.

Figure 1: All 216 Screen Metallics Assays vs Fire Assays

http://www.rns-pdf.londonstockexchange.com/rns/9903M_3-2016-10-19.pdf 

Planned Works:

BAM East Gold Prospect: Landore Resources has retained consulting engineers RPA Inc. ("RPA") of Toronto, Canada, with the view of completing an initial Mineral Resource estimate on the Bam East Gold Prospect, scheduled for completion Q1 2017.

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 Project. Landore Resources has mineral rights to 4 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

 

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