TIDMLND
RNS Number : 5348X
Landore Resources Limited
01 September 2020
LANDORE RESOURCES LIMITED
(AIM Ticker: LND.L)
DRILLING AND EXPLORATION PROGRAMME 2020/21
AND PIT OPTIMISATION REVIEW
BAM GOLD DEPOSIT
JUNIOR LAKE PROPERTY
London, United Kingdom 1(st) September 2020 - Landore Resources
Limited (AIM:LND) ("Landore Resources" or "the Company") is pleased
to provide an update on the Drilling and Exploration programme for
2020-2021 on the BAM Gold Deposit, Junior Lake Property, Ontario,
Canada ("BAM Gold Deposit") together with a 'Pit Optimization
Review' showing the significant enhancement of value of the
discovered ounces at higher gold prices for the benefit of
shareholders.
HIGHLIGHTS
-- BAM GOLD DEPOSIT-PIT OPTIMISATION REVIEW
In response to the significant increase in the price of gold
since the Company's Preliminary Economic Assessment ("PEA") was
updated in December 2019, a 'Pit Optimisation Review' (the
"Review") complete with physicals and financial analysis' at
various gold prices ranging from US$1,500 to US$2,400 has been
prepared. The Review shows revenue increasing from US$842 Million
to US$1,977 Million over that range. The Review covering the five
Pit Shell Options considered the existing Indicated and Inferred
Resource based on drilling completed to date.
A full copy of the above Review can is available on the
Company's website www.landore.com
-- PRICE SENSITIVITY ANALYSIS
The December 2019 Updated PEA for the BAM Gold project provided
a price sensitivity analysis of the 'Extended case' which, at a
gold price of US$1,560, would produce a Post Tax, Net Present value
(NPV) of US$227m.
At the current gold price of US$ 1,900 that Post tax NPV would
be elevated to US$370m
-- DRILLING TO COMMENCE IN OCTOBER 2020
Preparations are well advanced to commence the autumn-winter
drilling campaign on the BAM Gold Deposit, consisting of:
-- 7,500 metres of HQ Diamond core for Resource Infill and
Extension.
-- 3,000 metres of HQ Diamond core for Depth Potential and
-- 3,500 metres of HQ Diamond core for Exploration Target
definition
for a total of 14,000 metres of drilling aimed for completion in
March 2021. Landore is fully funded for the above planned
works.
-- EXPLORATION COMMENCED IN JULY 2020
Landore commenced an infill soil-till sampling programme in July
2020, covering 2,400 metres from the western extent of the BAM Gold
Deposit, aimed at confirming the drill targets identified in the
highly successful 2019 soil-till campaign. 455 samples with
controls have been submitted to the laboratory for analysis with
results expected in September 2020. An additional soil-till
sampling programme has commenced on the highly prospective area
covering 2,000 metres to the east of the BAM Gold Deposit.
.
Commenting on this report, Chief Executive Officer of Landore
Resources, Bill Humphries, said:
"The 2020-21 drilling and exploration programme is aimed to grow
the existing resource to over 1.3 million ounces of gold together
with establishing a defined 'Exploration Target' in excess of one
million ounces in the highly prospective zones to the east and west
of the existing resource further confirming the Directors view that
the BAM Gold Deposit has the clear potential to become a
multi-million ounce deposit."
BAM GOLD-PIT OPTIMISATION REVIEW
In response to the significant increase in the price of gold
since the Preliminary Economic Assessment (PEA) was updated in
December 2019, Cube Consulting were requested to provide a 'Pit
Optimisation Review' complete with physicals and financial
Analysis' at various gold prices ranging from US$1,500 to
US$2,400.
The Review covering the five Pit Shell Options considered the
existing Indicated and Inferred Resource with drilling completed to
date as shown on the sections in the review. No additional drilling
is required in these Pit shells.
Tables extracted from Pit Optimisation Review
BAM Gold Project
2019 Block Model - Model Reporting and Pit Optimisation
Review
24th August 2020
Physicals Analysis at Various Gold Prices
Physicals
Analysis
Material Run Shell
Type Base Total Waste Strip Mill Feed Material
Price Tonnes Tonnes Tonnes Au Rec.
(USD) RL (Mt) (Mt) Ratio (Mt) g/t Au kOz
------ ------- ------- ------ ------- ----- --------
Indicated
+ Inferred B 21 1500 130.0 95.2 80.7 5.6 14.5 1.23 561.5
------------- ----- ------ ------- ------ ------- ------- ------ ------- ----- --------
B 31 1800 100.0 136.7 118.2 6.4 18.5 1.15 669.2
------------------- ------ ------- ------ ------- ------- ------ ------- ----- --------
B 38 2000 95.0 157.7 137.2 6.7 20.5 1.11 714.8
------------------- ------ ------- ------ ------- ------- ------ ------- ----- --------
B 44 2200 60.0 198.4 174.7 7.4 23.7 1.06 791.2
------------------- ------ ------- ------ ------- ------- ------ ------- ----- --------
B 51 2400 50.0 219.0 193.9 7.7 25.1 1.04 823.7
------------------- ------ ------- ------ ------- ------- ------ ------- ----- --------
Costing Analysis at Various Gold Prices
Costing
analysis
Material Run Shell
Type Mining Process Revenue Undiscounted Cost Incremental
Price Cost Cost Cash Flow
(USD) ($M) ($M) Au ($M) ($M) /Oz Cost /Oz
------- -------- ------------ ------------------------- --------- ------------
Indicated
+
Inferred B 21 1500 235.0 243.1 842.3 364.2 $ 851 $ 1,481
----------- ----- ------ ------ ------- -------- ------------ ------------------------- --------- ------------
B 31 1800 340.7 310.3 1,204.6 553.6 $ 973 $ 1,784
----------------- ------ ------ ------- -------- ------------ ------------------------- --------- ------------
B 38 2000 394.9 343.1 1,429.6 691.5 $ 1,033 $ 1,995
----------------- ------ ------ ------- -------- ------------ ------------------------- --------- ------------
B 44 2200 499.4 397.6 1,740.7 843.6 $ 1,134 $ 2,165
----------------- ------ ------ ------- -------- ------------ ------------------------- --------- ------------
B 51 2400 551.0 421.4 1,977.0 1,004.6 $ 1,180 $ 2,392
----------------- ------ ------ ------- -------- ------------ ------------------------- --------- ------------
Notes: No capital costs included in the input parameters
End of Extract
BAM GOLD DEPOSIT:
The BAM Gold Deposit extends for 3,700 metres from 400E to 4100E
and remains open down dip and along strike to the east and the
west. The BAM Gold Deposit is located approximately mid-way along a
highly prospective Archean greenstone belt which traverses the
Junior Lake Property from east to west for approximately 31
kilometres. The favora ble greenstone belt ranges from 0.5 to 1.5
kilometres wide and hosts multiple known gold occurrences including
the Lamaune Gold Prospect .
The updated Mineral Resource Estimate (MRE) for the BAM Gold
Deposit (details of which were notified on 7(th) January 2020)
reported: 31,083,000 tonnes (t) at 1.02 grams/tonne (g/t) for
1,015,000 ounces of gold including 21,930,000t at 1.06g/t for
747,000 ounces gold in the Indicated category.
Notes on classification:
Indicated Resource is where the quantity of drilling combined
with grade and quality is high enough to assume continuity between
the drill locations. At the BAM Gold Deposit the Indicated category
was achieved with 50m x 50m drill spacing. An Indicated Resource is
required to advance the BAM Gold Deposit into Pre-feasibility
studies.
Inferred mineralisation at the BAM Gold Deposit was achieved
with 100m x 50m drill spacing and requires additional infill
drilling to be advanced to Indicated category.
Exploration Target is where limited drilling combined with grade
and geology similar to the adjacent Resource can provide direct
drill targets.
In the four campaigns completed to date, infill drilling on the
BAM Gold Deposit has successfully advanced the identified
exploration targets to Inferred category and the Inferred to
Indicated category.
Autumn-Winter Drilling Programme:
Preparations are well advanced to commence the autumn-winter
drilling campaign on the BAM Gold Deposit in October 2020.
The programme consists of:
7,500 metres of HQ Diamond core planned for infill drilling of
the inferred portion of the resource both within and surrounding
the Indicated resource and to further extend the defined resource
500 metres to the east and west.
3,000 metres of HQ Diamond core planned to test for depth
potential of high grade zones beneath both the west and east pit
shells. Landore's Engineering Consultant, Cube Consulting of Perth,
Western Australia, has provided possible targets for drilling of
these zones.
3,500 metres of HQ Diamond core for Exploration Target
definition in the highly prospective zones identified by soil-till
sampling 2,400 metres to the west and 2,000 metres to the east of
the existing resource.
For a total of 14,000 metres aimed for completion in March
2021.
Landore is fully funded for the above planned works.
Exploration - Soil-Till Sampling Programme:
The Company'geological team commenced an infill soil-till
sampling programme in July 2020, covering 2,400 metres from the
western extent of the BAM Deposit, aimed at confirming the drill
targets identified in the highly successful 2019 soil-till
campaign. 455 samples with controls have been submitted to the
laboratory for analysis with results expected by late September
2020. An additional soil-till sampling programme has commenced on
the highly prospective area covering 2 kilometres to the east of
the BAM Gold Deposit.
A grid was first established 2400 metres westwards along strike
from the BAM Gold Resource with north-south lines established every
100 metres. The samples were then collected from the B horizon,
below the organic and humus level at a nominal distance of 25m
along the grid lines using a Dutch auger.
The soil sampling and assay procedure used in this campaign is
the same as reported in the 9(th) December 2019 notification
regarding the 2019 geological and soil sampling campaign on the
Felix-Junior Lake area.
Planning:
At the conclusion of the 2020-21 drilling campaign an updated
MRE and PEA will be prepared on the BAM Gold Deposit.
BAM Gold Resource and PEA:
A Technical Report and Preliminary Economic Assessment ("PEA")
of the BAM Gold Project was released on 20(th) February 2019. The
PEA is in compliance with the requirements of the Canadian National
Instruments 43-101 Standards of Disclosure for Mineral Projects
("NI 43-101").
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 30,507
hectares, is located in the province of Ontario, Canada,
approximately 235 kilometres north-northeast of Thunder Bay and is
host to: The BAM Gold Deposit; the B4-7
Nickel-copper-cobalt-Platinum-Palladium-gold Deposit; the VW
Nickel-Copper-cobalt Deposit; Lamaune Gold Prospect and numerous
other precious and base metal occurrences.
Brian Fitzpatrick, (MAusIMM CP.), Principal Geologist of Cube
Consulting Pty Ltd., Perth, Western Australia, a Qualified Person
as defined in the Canadian National Instrument 43-101 and the AIM
Rules for Companies, and responsible for the preparation of the BAM
Gold Project-Pit Optimisation Review 24(th) August 2020.
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.
Covid-19
The Company is following Government Covid-19 guidelines in its
operations in Canada.
For more information, please contact:
Bill Humphries, Chief Executive Officer Tel: 07734 681262
Glenn Featherby, Finance Director Tel: 07730 420318
Landore Resources Limited www.landore.com
Derrick Lee / Peter Lynch Tel: 0131 220 6939
Cenkos Securities plc
Nominated Advisor and Broker
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