Update on BAM East Gold Prospect

RNS Number : 8821Q

Landore Resources Limited

05 December 2016

 

LANDORE RESOURCES LIMITED

(AIM Ticker: LND.L)

 

 

PROGRESS REPORT

BAM EAST GOLD PROSPECT

JUNIOR LAKE PROPERTY

London, United Kingdom - December 5th 2016 - Landore Resources Limited (AIM:LND) ("Landore Resources" or "the Company") is pleased to provide this progress report on extension drilling of the BAM East Gold prospect on its Junior Lake Property, Ontario, Canada ("BAM East Gold Prospect").

Highlights:

·     Down Dip Extension: Drill-holes 0416-546 and 0416-547, drilled as step backs to the previously reported deepest drill-holes, have extended the Central Zone of the BAM East Gold prospect to > 250 metres down dip.  The Central Zone remains open at depth.

·     Eastwards Extension: Drill-hole 0416-553, drilled 200 metres along strike to the east of the Central Zone has intersected widespread gold mineralisation close to surface within a similar lithological package to the Central Zone.  

·     The BAM East Gold Prospect has now been confirmed over 700 metres of strike length and remains open down dip, to the east and to the west along strike.

Fall Drilling Campaign:

The fall drilling campaign is nearing completion with 13 (6-HQ and 7-NQ) diamond drill holes (0416-546 to 0416-558), for 3,385 metres, having been drilled to test the east, west and down dip extensions of the new gold zone. Two more NQ drill holes are scheduled to be drilled to complete this programme. To date results have been received for 5 drill holes with results pending for the remainder.

Latest results received include the following.

Easting	Northing	Drill-hole	From	Interval*	Au
		No	Metres	Metres	g/t
2350E	25S	0416-546	237.84	16.61	1.76
		Incl.	252.45	2.00	8.22
2400E	25S	0416-547	217.25	16.68	2.32
		Incl.	231.93	2.00	12.00
2450E	25S	0416-548	94.75	12.00	0.78
		and	186.00	19.68	1.00
		Incl.	200.58	1.00	8.87
2300E	25S	0416-549	253.50	3.00	1.35
2900E	50S	0416-553	12.00	11.30	0.81
		Incl.	13.00	1.00	5.10
		and	35.30	19.25	0.46

* Holes 0416-546 to 549 were drilled north at 55 degrees with 0416-553 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 80-85% for 0416-546 to 549 and between 85-90% for 0416-553 of the intervals shown in the above table.

Drill holes 0416-546 to 0416-549, drilled as step-backs to previously reported drill-holes 0416-535 and 0416-539 to 0416-541 inclusive, were aimed at defining the down plunge direction of the Central Zone from 2300E to 2450E. The two drill-holes at 2350E and 2400E clearly intersected the Central Zone with multiple showings of visible gold confirming its continuation down plunge whilst the two drill-holes at 2300E and 2450E appear to be on the periphery of the zone.

Drill-hole 0416-553 was drilled to test the MM-7 geophysical conductor 200 metres along strike to the east of the Central Zone, on line 2900E. The hole successfully intersected wide spread gold mineralisation from surface in a similar lithological package to the Central Zone. A 100 metre step-back hole to 0416-553 was also completed with results pending. A 50 metre step-back to 0416-553 is planned as part of the current drilling program.

Other drilling has been completed on lines, 1000W, 1600W, 2100W, 2200W to further test the Western strike extension of the BAM East Gold Prospect together with two infill HQ holes in the central Zone. Results are pending and will be reported as soon as they are QAQC checked and collated.

Studies in progress:  

Metallurgical Testing: Drill core material has been submitted to ALS Metallurgy Kamloops of British Columbia for Gravity Concentration and Cyanidation Bottle Roll Testing.

Borehole Surveying: DGI Geoscience of Ontario has been engaged to conduct Borehole Surveying, using an Acoustic Televiewer, of selected drill-holes on the Central Zone to provide true orientation of features for structural studies and for future geotechnical studies.

Resource Estimate: Landore Resources has retained consulting engineers RPA Inc. ("RPA") of Toronto, Canada, with the view of completing an initial Mineral Resource estimate and NI 43-101 Technical Report on the Bam East Gold Prospect, scheduled for completion Q1 2017.

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 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 has revealed a lithological sequence consisting of leucogabbro 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.

The wide gold mineralisation, close to surface, has potential for the initial development to be progressed as a low cost, bulk tonnage, open pit operation. Initial studies indicate the mineralisation to be native gold with no sulphides associated with precious metal minerals observed to date. This would indicate a simple processing route with excellent recovery potential.

Planned Works:

Future Drilling: Planning has commenced for a winter drill programme in Q1/Q2 2017 along 400 metres to the west of line 2450E in the Ladle Flats which is highly-prospective to contain the near surface extension of the BAM East Gold Prospect, as well as further drilling to test down dip and East-West strike extension.

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 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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