TIDMLND
RNS Number : 9515T
Landore Resources Limited
24 July 2020
24 July 2020
Landore Resources Limited
Final Results and Notice of AGM
The Board of Landore Resources Limited is pleased to announce
its audited results for the year to 31 December 2019.
For more information, please contact:
Landore Resources Limited
Bill Humphries, Chief Executive Officer Tel: 07734 681262
Glenn Featherby, Finance Director Tel: 07730 420318
Cenkos Securities plc (Nominated Advisor and Broker)
Derrick Lee / Peter Lynch Tel: 0131 220 9771
Chief Executive Officer's statement
I am pleased to present the 2019 Annual Report for Landore
Resources Limited ("Landore Resources" or the "Group").
During 2019, all of Landore Resources' exploration efforts were
focused on the Junior Lake property, drilling to increase the BAM
Gold resource to 1,015,000 ounces of gold (reported by the Company
on 7th January 2020), as well as completing an extensive
exploration campaign westwards along strike for approximately 7
kilometres from the existing BAM Gold Project successfully
establishing the presence of widespread anomalous gold and
indicating multiple gold trends.
Board changes
We welcomed Glenn Featherby onto the board as a non-executive
Director on 17 January 2020. Glenn has over 35 years' experience in
corporate advisory work and has an extensive background in the
resources sector.
On 7 February 2020, Richard Prickett resigned as a Director due
to personal and family commitments. As a result, Glenn took over
the role of Finance Director.
On behalf of my fellow Directors, Management, Staff and
Associates I would like to extend our sincere thanks and
appreciation to Richard for his years of service to the Company as
our Finance Director. His guidance and contribution has been
invaluable to the development of the Company.
Financial Results
In the year ended 31 December 2019, the Group incurred a loss,
after tax, of GBP2,145,920 (2018: GBP2,783,480).
Operating expenses were in line with our budgets and
expectations, financing details are set out below.
In May 2019, the Group raised GBP1 million by the issuance of
shares at a price of 0.7p per share.
In July 2019, the Group raised GBP250,000 by the issuance of
shares at a price of 0.7p per share.
In September 2019, the Group raised a further GBP470,000 by the
issuance of shares at a price of 0.725p per share, fully funding
its operational expenses for 2019.
Post-year end events
In January 2020, the Group raised a further GBP225,000 by the
issuance of shares at a price of 0.7p per share.
In April 2020, the Group raised a further GBP260,000 by the
issuance of shares at a price of 0.675p per share.
In July 2020, the Group raised a further GBP2.8 million by the
issuance of shares at a price of 0.675p per share. The fundraising
received good support from new and existing investors together with
an eminent gold investor, Mr Eric Sprott who has taken a 9.72%
stake in the Company. This will allow the continued development of
the identified BAM Gold Resource and the completion of a further
exploration programme along strike to other known gold
prospects.
The Group has no debt and will continue to raise further equity
as needed to carry out its development plans. Shareholders have
been very supportive of the Group's financing needs and the
Directors are confident of raising further funds as required.
The Junior Lake Property:
The Junior Lake property, 100 per cent. owned by Landore, 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-PGEs Deposit and
numerous other highly prospective mineral occurrences.
The Junior Lake property together with the adjacent 90.2 per
cent owned Lamaune Lake property extends for 31 kilometres across a
highly prospective archean greenstone belt and covers an area of
30,507 hectares.
BAM Gold Deposit: The 2019 summer drilling campaign of 3,966
metres of diamond core was concentrated on upgrading Inferred
mineral resources to an Indicated status, the results of which were
subsequently used to complete a revised Mineral Resource Estimate
with Technical Report, reported by Landore on 7th January and 9th
April 2020 respectively. Drilling also confirmed gold
mineralisation extensions for 400 metres to the west of the defined
deposit.
Highlights of the Drilling and Resource Update include.
-- The new Mineral Resource Estimate (MRE) modelling has
increased the BAM Gold resource to: 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 of gold in the Indicated
Category.
-- The BAM Gold Deposit now extends for 3,700 metres from 400E
to 4100E and remains open down dip and along strike to the east and
the west. In addition, the recently completed soil sampling program
has identified widespread gold mineralisation along strike to the
west for a further 7 kilometres.
The Company's continued progress with the BAM Gold Deposit,
together with the possible future development of the other known
gold prospects along this highly prospective 31 kilometre archean
greenstone belt, supports the Directors belief that the Junior Lake
Property may host a multi-million ounce gold deposit.
Due to the substantial increase in the gold price since the
February 2019 Preliminary Economic Assessment (PEA) was published,
the financial model, which used US$1,300/ounce, was re-evaluated in
January 2020. Using the then prevailing price of US$1,560/ounce,
the new price sensitivity analysis of the 'Extended case' increased
the 'Post Tax, Net Present value (NPV) from US$123.71m. to
US$227.37m.
Further details are set out in the Operations Report.
Planned works for 2020: The recent fundraising will allow the
Group to complete 3,400 metres of exploration drilling to follow up
on identified gold targets, 7,600 metres of resource infill and
extension drilling, 3,000 metres of depth drilling and infill soil
sampling from Felix Lake to the BAM Gold Project to include ground
geophysics and soil sampling.
The fundraising puts the Group in a position to progress towards
establishing a multi-million ounce gold resource, whilst continuing
to explore corporate transactions with a view to maximising
shareholder value.
Social and Environmental Responsibility: The Group continues to
enjoy solid working relationships with the local First Nations on
whose traditional lands our Junior Lake Property is located.
Landore believes that a successful project is best achieved through
maintaining close working relationships with First Nations and
other local communities.
On behalf of my fellow Directors I wish to thank our
shareholders for their continued support together with Landore's
Management and Exploration team for their dedication and
perseverance in advancing the highly prospective Junior Lake
Property.
William Humphries
Chief Executive Officer
23 July 2020
Operations report
INTRODUCTION:
Landore Resources Limited, through its 100 per cent owned
subsidiary Landore Resources Canada Inc. ("Landore"), is actively
engaged in mineral exploration in Eastern Canada. Landore owns or
has the mineral rights to four properties in Eastern Canada
including its highly prospective Junior Lake property together with
a 30 per cent interest in the West Graham property located in the
Sudbury Nickel Belt.
Landore through its 100 per cent owned subsidiary Brancote US,
owns or has the mineral rights to a further eight properties for 99
claims in the State of Nevada.
During 2019, all of Landore Resources' exploration efforts were
focussed on the Junior Lake property. The Company undertook a
drilling campaign which increased the BAM Gold resource to
1,015,000 ounces of gold (reported by the Company on 7 January
2020). Landore also carried out an extensive exploration campaign
westwards along strike for approximately 7 kilometres from the
existing BAM Gold Project, which successfully established the
presence of widespread anomalous gold and indicating multiple gold
trends.
Full details of the Group's projects, including maps, Canadian
National Instrument 43-101 (NI 43-101) resource reports,
geophysical and soil geochemistry surveys etc. can be viewed on the
Group's website, www.landore.com .
JUNIOR LAKE PROPERTY:
The Junior Lake property, 100 per cent. owned by Landore, 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-PGEs Deposit and the
adjacent Alpha PGEs zone. Junior Lake also contains the VW Nickel
Deposit and numerous other highly prospective mineral
occurrences.
The Junior Lake property is comprised of the Junior Lake claim
group and the immediately adjacent claim group of Lamaune Iron Inc.
(Lamaune Iron). In October 2017, Landore acquired a 90.2 per cent
ownership of Lamaune Iron, which has become a subsidiary company of
Landore.
Subsequent to this acquisition, in late 2019 Ontario's Ministry
of Energy, Northern Development and Mines granted the Company
Mining Leases 109856 and 109857 encompassing all of Lamaune Iron
Inc.'s exploration claims over an area totalling approximately
4,133 hectares, for a 21 year term renewable for further terms of
21 years.
Landore's Junior Lake property including the Lamaune claim group
now consist of 1,158 staked mineral claims and six mining leases,
all together totaling approximately 30,507 ha.
The Junior Lake property extends for 31 kilometres across highly
prospective archean greenstone belt.
BAM GOLD DEPOSIT:
The BAM Gold Deposit (formerly BAM East Gold Deposit) is located
approximately 2 kilometres to the east of the B4-7 Deposit and 1
kilometre north of the VW Deposit and is situated midway along an
east-southeast to west-northwest trending MaxMin geophysical
anomaly (MM-7). MM-7 had not been drill tested prior to the
discovery of the BAM Gold Deposit.
The BAM Gold Deposit was discovered in December 2015 while
drilling to test the geophysical target, MaxMin anomaly MM-7. The
drilling intersected a wide zone of gold mineralisation close to
surface.
Mineralisation consisted of low grade gold with periodic
intervals of higher grade gold. Follow up drilling in
February/March 2016 validated the initial discovery and established
the maiden resource (reported in Landore's press release dated 17
February 2017). Subsequent drilling has grown the resource
considerably, now extending over 3.5 kilometres from local grid
line 400E to 4100E remaining open to the east and west and down
dip. In addition, the soil sampling campaign completed as part of
the 2019 exploration programme has identified widespread gold
mineralisation along strike to the west for a further 7
kilometres.
The BAM Gold Deposit is interpreted as an archean-aged
mesothermal gold deposit. Findings from drilling to-date on the BAM
Gold Deposit have revealed a lithological sequence consisting of
leucogabbro and gabbro of the Grassy Pond Sill to the south,
metasedimentary rocks of the BAM Sequence 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 deposit consists of gold mineralisation that is hosted by
sheared and altered rocks of the Grassy Pond Sill and the BAM
Sequence. The gold mineralisation is commonly observed in drill
core to exist as visible gold that is hosted by very thin,
foliation-parallel quartz-rich veinlets, hosted by highly fissile
ultramafic sediments of the BAM Sequence, or by foliated rocks of
the Grassy Pond Sill.
This significant new discovery has the potential for the initial
development to be progressed as a low cost, bulk tonnage, open pit
operation.
Summer Drill Campaign: In June 2019 Landore re-commenced
drilling focussed in part to bring Inferred portions of the BAM
Gold Deposit to Indicated status for inclusion into an updated
Mineral Resource Estimate, together with exploration drilling along
a potential 500+ metre extension of the BAM Gold Deposit along
strike to the west from 900E to 400E. This drilling was used in the
preparation of an updated Mineral Resource Estimate (reported in
Landore's press release dated 7 January 2020).
The 2019 drill campaign, completed by late August 2019,
consisted of 3,966 metres for 38 HQ diamond drill holes (0419-687
to 0419-724). Drilling successfully intersected gold mineralisation
of similar widths and grade to the existing BAM Gold Deposit with
multiple instances of visible gold ("VG"). Intersections included
drill hole 0419-701 reporting 17.78 metres at 1.08 grams/tonne gold
(g/t) and drill-hole 0419-704 reporting 0.98 metres at
22.90g/t.
Results received in the 2019 drilling campaign included:
Easting Northing Drill-hole From Interval* Au
No Metres Metres g/t
--------- ----------- ------- ---------- ------
400E 575N 0419-700 64.39 1.96 3.54
--------- ----------- ------- ---------- ------
800E 450N 0419-694 143.88 1.00 7.81
--------- ----------- ------- ---------- ------
1250E 300N 0419-701 169.62 17.78 1.08
--------- ----------- ------- ---------- ------
1300E 345N 0419-702 96.25 6.65 2.76
--------- ----------- ------- ---------- ------
1ncluding 97.20 1.00 10.15
--------- ----------- ------- ---------- ------
1350E 375N 0419-703 47.00 10.00 1.14
--------- ----------- ------- ---------- ------
Including 47.00 1.28 5.90
--------- ----------- ------- ---------- ------
1350E 300N 0419-704 104.75 0.98 22.90
--------- ----------- ------- ---------- ------
and 126.04 11.32 1.22
--------- ----------- ------- ---------- ------
and 158.34 0.30 9.57
--------- ----------- ------- ---------- ------
1400E 350N 0419-706 56.00 8.37 2.19
--------- ----------- ------- ---------- ------
1400E 270N 0419-707 143.00 4.00 1.11
--------- ----------- ------- ---------- ------
1450E 225N 0419-709 194.02 0.89 11.80
--------- ----------- ------- ---------- ------
1050E 350N 0419-718 29.50 1.00 7.89
--------- ----------- ------- ---------- ------
and 173.50 14.00 1.10
--------- ----------- ------- ---------- ------
1150E 375N 0419-715 109.94 13.06 1.72
--------- ----------- ------- ---------- ------
1150E 325N 0419-716 170.40 10.89 2.22
--------- ----------- ------- ---------- ------
1550E 325N 0419-719 16.17 1.70 6.23
--------- ----------- ------- ---------- ------
and 88.93 0.79 11.75
--------- ----------- ------- ---------- ------
1600E 295N 0419-713 109.13 12.87 3.23
--------- ----------- ------- ---------- ------
including 117.00 1.00 28.60
--------- ----------- ------- ---------- ------
2200E 210N 0419-722 21.53 7.57 1.56
--------- ----------- ------- ---------- ------
2400 E 127N 0419-723 58.30 15.70 1.09
--------- ----------- ------- ---------- ------
2450E 75N 0419-724 89.32 20.39 1.20
--------- ----------- ------- ---------- ------
* The above drill holes were drilled north at 45 degrees into a
lithological package dipping approximately 85-75 degrees to the
south. The actual true thickness of mineralisation is estimated to
represent between 65-75% of the intervals shown in the above
table.
The 2019 drilling successfully upgraded previous Inferred
mineral resources to Indicated status, as well as confirmed gold
mineralisation extensions to the west of the defined deposit. The
BAM Gold Deposit remains open to the east and west as well as down
dip.
2019 Ground Exploration: Geological review by Landore had
identified favorable geological lithology and structure having the
potential to continue along the full 31 kilometre east-west extent
of the archean greenstone belt traversing the Junior Lake Property,
the majority of which to-date is unexplored.
Accordingly, in 2019 ground exploration activities including
ground geophysics, geological survey and soil sampling investigated
this regional prospectivity in an area between the BAM Gold Deposit
and the Lamaune Gold Exploration Target located approximately 8.5
kilometres to the west of BAM. A north-west/south-east bearing grid
(Felix Grid) 5,000 metres long by 1,200 metres wide with cross
lines cut at approximately 200 metre spacing was established, upon
which the programmed exploration was carried out over approximately
32 line kilometres within the grid.
Results from the Electromagnetic (HLEM-MaxMin) VLF and
Magnetometric ground geophysics survey are highly promising showing
potential continuation of the main conductors encountered in the
BAM Gold Deposit area. Prospecting of the Felix Grid revealed
similar lithologies encountered within the BAM Gold Deposit area
itself. Soil sampling was completed at 25 metre intervals over the
entire Felix Grid, as well as line 4100E. The results identified
numerous gold anomalies and trends, which together with the
encouraging geology and geophysics results have generated numerous
new drill targets with the potential of being advanced into
additional resources.
A map of soil oil gold anomalies showing regional growth
potential can be viewed in the Annual Report, which will shortly be
available on the Company's website.
RESOURCE ESTIMATE:
Landore retained consulting engineers Cube Consulting Pty Ltd
("Cube") of Perth, Western Australia, to use the results of the
2019 drilling programme for the completion of a revised Mineral
Resource Estimate with a Technical Report on the BAM Gold Deposit,
all compliant with the requirements of National Instrument 43-101
Standards of Disclosure for Mineral Projects (NI 43-101).
A data compilation from drilling completed on the project was
delivered to Cube during Q4 2019. The revised Resource Estimate,
classified in accordance to NI 43-101 standards, was reported by
Landore 7(th) January 2020. The completion of the Technical Report
was subsequently reported by Landore on 9(th) April 2020.
The new Mineral Resource Estimate (MRE) modelling has increased
the BAM Gold resource to: 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.
Table 1 -- 1 BAM Gold Project In-Situ Mineral Resources In-situ
Mineral Resource - All Indicated and Inferred Resources (as at 30
December 2019)
Resource Material Au g/t Tonnes Grade Contained
Category Type cut off (kT) (g/t Metal
Au) (Oz Au)
Measured ALL >0.3 0 0 0
---------- ---------- ------- ------ ----------
Indicated ALL >0.3 21,930 1.06 747,000
---------- ---------- ------- ------ ----------
Inferred ALL >0.3 9,153 0.91 268,000
---------- ---------- ------- ------ ----------
Notes:
1 Effective date of 30 December 2019.
2 Mineral Resources are estimated at a block cut-off
grade of 0.3 g/t Au.
3 Mineral Resources are estimated using a long-term gold
price of US$1,500 per ounce.
4 A minimum mining width of two metres was used.
5 Bulk densities for the main host rocks are 2.82 t/m(3)
, 2.84 t/m(3) , and 2.90 t/m(3) .
6 Mineral Resources that are not Mineral Reserves do
not have demonstrated economic viability.
7 Figures may not add up due to rounding
As the BAM Gold Deposit is located along a highly prospective
archean greenstone belt which traverses the Junior Lake Property
from east to west for approximately 31 kilometres, there is great
potential for further significant gold mineralisation. This
favourable greenstone belt ranges from 0.5 to 1.5 kilometres wide
and hosts multiple known gold occurrences, including the Lamaune
Gold Prospect.
It is Landore's opinion that the Junior Lake property has
definite potential to host a multi-million ounce gold deposit.
Preliminary Economic Assessment:
This assessment, completed in February 2019 by Cube Consulting
Pty Ltd. to NI 43-101 standards, combined data including drilling,
metallurgical and geotechnical assessments to determine the
preliminary economic viability of the BAM Gold Deposit. Results are
positive, indicating that the BAM Gold Deposit has the capacity to
be progressed to the production stage.
In light of the rapidly changing gold market, the 'Extended
Case' price sensitivity analysis from the February 2019 BAM Gold
project Preliminary Economic Assessment (PEA) was re-examined at a
gold price of US$1,560.
P r o j e c t F i nan c ia ls
(Un g e a re d ): real unl e ss B ase E xt e
s t ated nd e d
Go ld Price (Ave r age L OM) USD / oz 1 , 5 00 1 , 5 00
------------- ------------- ------------
N et Go ld Reve nue (Ex S i t 1 , 1 36
e) USD M 7 3 1 .03 . 20
------------- ------------- ------------
I ni t i al C a p ex USD M 93 .81 93 .81
------------- ------------- ------------
S u st a i n i ng C a pex and
M ine De v e l op m e nt c o s
ts USD M 1 . 27 1 . 97
------------- ------------- ------------
A l l-in -Sust a in i ng- C o U SD /
st (AI S C) oz 806 816
------------- ------------- ------------
Proj e ct NPV (Pre- T a x) USD M 1 8 0 .82 2 9 6 .98
------------- ------------- ------------
Project NPV (Post Tax) USD M 124.85 203.44
------------- ------------- ------------
Pro j e ct I RR ( P r e-T ax) % 4 3 .9% 47 .7%
------------- ------------- ------------
Pro j e ct I RR ( P ost T ax) % 3 5 .4% 39 .1%
------------- ------------- ------------
Pro j e ct Pa y back P eriod Yea r s 3 . 50 3 . 50
------------- ------------- ------------
Pr o j e ct B r e ak -E v en Gold US D /
Pr i ce o z 1 , 0 60 997
------------- ------------- ------------
The Preliminary Economic Assessment has demonstrated the
economic viability of this project as well as its high growth
potential, and has reinforced Landore's opinion that the BAM Gold
Project can be developed as a low-cost open pit mining
operation.
2020 Planned Works:
The recent fundraising will allow the Group to complete 3,400
metres of exploration drilling to follow up on identified gold
targets, 7,600 metres of resource infill and extension drilling,
3,000 metres of depth drilling and infill soil sampling from Felix
Lake to the BAM Gold Project to include ground geophysics and soil
sampling.
B4-7 NICKEL-COPPER-COBALT-PGEs DEPOSIT:
No material work has been completed on the B4-7 since the
discovery of the BAM Gold Deposit in December 2015 as the Company
has focussed on the rapid progression of the gold project.
The B4-7 resource estimate and report, completed by RPA Inc.
(RPA) independent engineers of Toronto, Canada in January 2018, is
compliant with the requirements of NI 43-101. The resource, so far
delineated over 900 metres of strike and a depth of 550 metres,
remains open down plunge at depth and along strike to the west.
Table 1-2 Mineral Resources for the B4-7 Nickel-Copper-Cobalt-PGE
Deposit and Alpha Zone - December 1, 2017
Landore Resources Canada Inc. - Junior Lake Project
Deposit Tonnes Ni Cu Co Pt Pd Au NiEq
(%) (%) (%) (g/t) (g/t) (g/t) (%)
------------- --------- ---------- ----- ----- ----- ------- ------- ------- -----
Open Pit
Indicated Alpha 132,000 0.23 0.09 0.02 0.18 0.99 0.01 0.63
B4-7 1,640,000 0.62 0.41 0.05 0.14 0.55 0.03 1.20
Inferred - - - - - - - -
Underground
Indicated B4-7 1,520,000 0.65 0.45 0.06 0.12 0.48 0.03 1.25
Inferred B4-7 568,000 0.61 0.52 0.05 0.08 0.50 0.03 1.26
Total
Indicated 3,292,000 0.62 0.42 0.05 0.13 0.53 0.03 1.20
Inferred 568,000 0.61 0.52 0.05 0.08 0.5 0.03 1.26
Notes:
1. CIM (2014) definitions were followed for Mineral Resource
estimation and classification.
2. Mineral Resources are estimated using average long-term metal
prices (US$) of $8.00/lb nickel, $3.50/lb copper, $19.00/lb cobalt,
$1,400/oz platinum, $1,000/oz palladium, and $1,400/oz gold and an
exchange rate (C$/US$) of 1.25, and the NSR factors stated in the
body of this report.
3. Open Pit Mineral Resources are reported within a resource pit
shell at an NSR cut-off value of $22/t. Underground Mineral
Resources are reported at an NSR cut-off value of $62/t.
4. Tonnage figures are rounded to three significant figures.
Totals may not add correctly due to rounding.
5. The Mineral Resource estimate uses drill hole data available
as of December 16 2015.
6. The Mineral Resource estimate for the B4-7 Deposit is
reported using densities calculated from estimated nickel + cobalt
grades. The Mineral Resource estimate for the Alpha Zone is
reported using densities calculated from estimated nickel
grades.
The report also identified a new Exploration Target located
immediately west of the B4-7 Deposit containing a potential 1.5 Mt
to 2.0 Mt of sulphide mineralisation of similar grade range to that
which has been outlined to-date (potential 18,000 to 24,000 tonnes
of contained metal).
There is significant value in the B4-7 Deposit in its credit
commodities, in particular cobalt and palladium. The B4-7 2018
resource upgrade reported a significant cobalt content credit of
+4.6 million pounds for the deposit to date together with +66,000
ounces of Palladium. However, the adjacent Alpha Zone, which has
only partially been included in the B4-7 resource, is
palladium/platinum rich with drilling reporting intersections of
1.5 metres at 10.15g/t Pd in drill hole 0415-507 and 20.15 metres
at 1.54 g/t Pd. in drill-hole 0414-503 including 0.72 metres at
12.85 g/t Pd.
Infrastructure: The city of Thunder Bay is located on the
northern shore of Lake Superior and is the main supply hub for the
mining centres of northern Ontario including Red Lake, Pickle Lake,
and the Musselwhite gold mine. It has extensive port facilities and
an airport providing daily flights to major provincial cities, as
well as a rail line that provides access to both eastern and
western North American markets.
Access to Junior Lake from Thunder Bay is via a sealed highway
for 235 kilometres to the town of Armstrong and then via a well
maintained forest products unsealed road for 105 kilometres that
runs to the property.
The Canadian National Railway runs parallel to the Junior Lake
property 13 kilometres to the south providing direct transport
access to both the nickel smelting centre of Sudbury and the port
facilities at Thunder Bay. In addition, Junior Lake has abundant
water resources nearby.
Environmental Baseline Studies: Golder Associates of Sudbury,
Ontario, have continued with the Environmental Baseline Studies
programme initiated on the mining leases containing the B4-7 and VW
Deposits in the winter of 2007. Water surface monitoring of lakes
and drainage tributaries within the vicinity of the deposits have
continued on at least a bi-annual basis since 2011. The area of
influence has recently been expanded to include lakes and drainage
further out from the leases. The environmental and baseline studies
are all pre-requisite for permitting requirements for the
development of the BAM, B4-7 and VW Deposits.
Mining Leases: A pre-requisite for the development of the BAM,
B4-7 and VW Deposits is to secure tenure over an area of land
sufficiently large to provide for development, mining, processing,
infrastructure and buffer zones around the mining areas and for
future expansion. Landore has been granted three mining leases
("Mining Leases"), which include mining and surface rights, over an
area encompassing the BAM, B4-7 and VW Deposits. The mining leases
cover 23 existing exploration claims for a total area of 3,676
hectares and have been granted for 21 years renewable for further
terms of 21 years. Additionally, in late 2019 Ontario's Ministry of
Energy, Northern Development and Mines granted the Company Mining
Leases 109856 and 109857 encompassing all of Lamaune Iron Inc.'s
exploration claims over an area totalling approximately 4,133
hectares.
The combined Landore and Lamaune Mining Leases cover a total of
approximately 7,862 hectares and extend for 22 kilometres,
encompassing all of Landore's established mineral deposits and
prospects. These include: the BAM Gold Deposit; B4-7
Nickel-Copper-Cobalt-PGEs Deposit; VW Nickel-Copper Deposit (all
NI43-101 compliant); the Lamaune Gold Exploration Target; and the
Lamaune Iron Deposit.
Within the Mining Leases, Landore has the right, subject to
provisions of certain Acts and reservations, to:
-- Sink shafts, excavations etc., for mining purposes.
-- Construct dams, reservoirs, railways, etc., as needed.
-- Erect buildings, machinery, furnaces, etc., as required and
to treat ores.
OTHER PROPERTIES:
Landore has other non-core exploration properties which include
grass roots exploration and defined drill targets.
SOCIAL AND ENVIRONMENTAL RESPONSIBILITY:
Landore believes that a successful project is best achieved
through maintaining close working relationships with First Nations
and other local communities. This social ideology is at the
forefront of Landore's exploration initiatives and the Company
seeks to establish and maintain co-operative relationships with
First Nations communities, hiring local personnel and using local
contractors and suppliers where possible.
Careful attention is given to ensure that all exploration
activity is performed in an environmentally responsible manner and
abides by all relevant mining and environmental acts. Landore takes
a conscientious role in all of its operations, and is aware of its
social responsibility and its environmental duty.
Michele Tuomi, P.Geo.
Director/VP Exploration, Landore Resources Canada Inc.
23 July 2020
Consolidated statement of comprehensive income
For the year ended 31 December 2019
Group Group
31 December 31 December
2019 2018
Notes GBP GBP
Exploration costs 9 (1,241,647) (2,045,702)
Administrative expenses 25 (904,424) (744,770)
------------------------------------------- ----- ----------- -----------
Operating loss (2,146,071) (2,790,472)
Finance income 5 151 6,992
------------------------------------------- ----- ----------- -----------
Loss before income tax (2,145,920) (2,783,480)
Income tax 8 - -
------------------------------------------- ----- ----------- -----------
Loss for the year (2,145,920) (2,783,480)
------------------------------------------- ----- ----------- -----------
Other comprehensive (loss)/income:
Exchange difference on translating foreign
operations 18 (30,884) 1,670
------------------------------------------- ----- ----------- -----------
Other comprehensive (loss)/income for
the year net of tax (30,884) 1,670
------------------------------------------- ----- ----------- -----------
Total comprehensive loss for year (2,176,804) (2,781,810)
------------------------------------------- ----- ----------- -----------
Loss attributable to:
Equity holders of the Company (2,144,998) (2,782,726)
Non-controlling interests (922) (754)
------------------------------------------- ----- ----------- -----------
Total comprehensive loss attributable
to:
Equity holders of the Company (2,175,882) (2,781,056)
Non-controlling interests (922) (754)
------------------------------------------- ----- ----------- -----------
Loss per share for losses attributable
to the equity holders
of the Company during the year
- basic 10 (0.002) (0.003)
------------------------------------------- ----- ----------- -----------
- diluted 10 (0.002) (0.003)
------------------------------------------- ----- ----------- -----------
The Group's operating loss relates to continuing operations.
Company statement of comprehensive income
For the year ended 31 December 2019
Company Company
31 December 31 December
2019 2018
Notes GBP GBP
Administrative expenses 25 (629,645) (577,675)
-------------------------------------- ----- ----------- -----------
Operating loss (629,645) (577,675)
Interest receivable 151 6,992
Foreign exchange gain/(loss) 223,960 (555,656)
-------------------------------------- ----- ----------- -----------
Loss before income tax (405,534) (1,126,339)
Income tax expense - -
-------------------------------------- ----- ----------- -----------
Total comprehensive loss for the year (405,534) (1,126,339)
-------------------------------------- ----- ----------- -----------
The Company's operating loss relates to continuing
operations.
Consolidated statement of financial position
As at 31 December 2019
Group Group
At At
31 December 31 December
2019 2018
Notes GBP GBP
Assets
Non-current assets
Property, plant and equipment 11 32,323 43,748
---------------------------------- ----- ------------ ------------
32,323 43,748
Current assets
Trade and other receivables 13 19,965 42,946
Cash and cash equivalents 26 107,668 277,458
---------------------------------- ----- ------------ ------------
127,633 320,404
---------------------------------- ----- ------------ ------------
Total assets 159,956 364,152
---------------------------------- ----- ------------ ------------
Equity
Capital and reserves attributable
to the Company's
equity holders
Share capital - nil par value 15 42,915,903 41,247,016
Share-based payment reserve 16 640,347 726,453
Accumulated deficit 17 (43,353,485) (41,432,637)
Translation reserve 18 (343,517) (312,633)
Total equity shareholders' funds (140,752) 228,199
---------------------------------- ----- ------------ ------------
Non-controlling interests 22 (3,227) (2,305)
Total equity (143,979) 225,894
---------------------------------- ----- ------------ ------------
Liabilities
Current liabilities
Trade and other payables 14 269,058 103,787
Current income tax liabilities 14 34,877 34,471
---------------------------------- ----- ------------ ------------
303,935 138,258
---------------------------------- ----- ------------ ------------
Total liabilities 303,935 138,258
---------------------------------- ----- ------------ ------------
Total equity and liabilities 159,956 364,152
---------------------------------- ----- ------------ ------------
These consolidated financial statements were approved and
authorised for issue by the Board of Directors on 23 July 2020.
William Humphries Glenn Featherby
Director Director
Company statement of financial position
As at 31 December 2019
Company Company
At At
31 December 31 December
2019 2018
Notes GBP GBP
Assets
Non current assets
Investment in subsidiaries 12 94,888 94,888
---------------------------------- ----- ------------ ------------
94,888 94,888
---------------------------------- ----- ------------ ------------
Current assets
Trade and other receivables 13 31,505,051 29,894,040
Cash and cash equivalents 26 57,101 245,672
---------------------------------- ----- ------------ ------------
31,562,152 30,139,712
---------------------------------- ----- ------------ ------------
Total assets 31,657,040 30,234,600
---------------------------------- ----- ------------ ------------
Equity
Capital and reserves attributable
to the Company's
equity holders
Share capital - nil par value 15 42,915,903 41,247,016
Share-based payment reserve 16 640,347 726,453
Accumulated deficit 17 (11,984,556) (11,803,172)
---------------------------------- ----- ------------ ------------
Total equity shareholders' funds 31,571,694 30,170,297
---------------------------------- ----- ------------ ------------
Liabilities
Current liabilities
Trade and other payables 14 85,346 64,303
---------------------------------- ----- ------------ ------------
Total liabilities 85,346 64,303
---------------------------------- ----- ------------ ------------
Total equity and liabilities 31,657,040 30,234,600
---------------------------------- ----- ------------ ------------
These financial statements were approved and authorised for
issue by the Board of Directors on 23 July 2020.
William Humphries Glenn Featherby
Director Director
Consolidated statement of changes in equity
For the year ended 31 December 2019
Equity shareholders' funds
-------------------------------------------- -----------
Share Non-controlling
capital Share-based Accumulated Translation
nil par interest
value payment deficit reserve Total
GBP GBP GBP GBP GBP GBP
Balance as at 1 January
2018 38,322,307 855,453 (38,778,911) (314,303) (1,551) 82,995
------------ ----------- ------------ ----------- ----------------- -----------
Share option reserve adjustment
for
lapsed options (note 16) - (129,000) 129,000 - - -
Issue of ordinary share
capital - nil par (note
15) 3,150,000 - - - - 3,150,000
Issue costs (note 15) (225,291) - - - - (225,291)
Total transactions with
owners 2,924,709 (129,000) 129,000 - - 2,924,709
-------------------------------- ------------ ----------- ------------ ----------- ----------------- -----------
Loss for the year - - (2,782,726) - (754) (2,783,480)
Exchange difference from
translating
foreign operations - - - 1,670 - 1,670
-------------------------------- ------------ ----------- ------------ ----------- ----------------- -----------
Total comprehensive loss
for the year - - (2,782,726) 1,670 (754) (2,781,810)
-------------------------------- ------------ ----------- ------------ ----------- ----------------- -----------
Balance as at 31 December
2018 41,247,016 726,453 (41,432,637) (312,633) (2,305) 225,894
-------------------------------- ------------ ----------- ------------ ----------- ----------------- -----------
Balance as at 1 January
2019 41,247,016 726,453 (41,432,637) (312,633) (2,305) 225,894
------------ ----------- ------------ ----------- ----------------- -----------
Share option reserve adjustment
for
lapsed options (note 16) - (224,150) 224,150 - - -
Issue of options (note
16) - 128,243 - - - 128,243
Issue of warrants (note
16) - 9,801 - - - 9,801
Issue of ordinary share
capital - nil par (note
15) 1,820,000 - - - - 1,820,000
Issue costs (note 15) (151,113) - - - - (151,113)
Total transactions with
owners 1,668,887 (86,106) 224,150 - - 1,806,931
-------------------------------- ------------ ----------- ------------ ----------- ----------------- -----------
Loss for the year - - (2,144,998) - (922) (2,145,920)
Exchange difference from
translating
foreign operations - - - (30,884) - (30,884)
-------------------------------- ------------ ----------- ------------ ----------- ----------------- -----------
Total comprehensive loss
for the year - - (2,144,998) (30,884) (922) (2,176,804)
-------------------------------- ------------ ----------- ------------ ----------- ----------------- -----------
Balance as at 31 December
2019 42,915,903 640,347 (43,353,485) (343,517) (3,227) (143,979)
-------------------------------- ------------ ----------- ------------ ----------- ----------------- -----------
Company statement of changes in equity
For the year ended 31 December 2019
Share capital Share-based Accumulated
nil par
value payment deficit Total
GBP GBP GBP GBP
Balance as at 1 January 2018 38,322,307 855,453 (10,805,833) 28,371,927
------------- ----------- ------------ -----------
Lapsed options (note 16) - (129,000) 129,000 -
Issue of ordinary share capital
- nil par (note 15) 3,150,000 - - 3,150,000
Issue costs (note 15) (225,291) - - (225,291)
Total transactions with owners 2,924,709 (129,000) 129,000 2,924,709
-------------------------------- ------------- ----------- ------------ -----------
Loss for the year - - (1,126,339) (1,126,339)
-------------------------------- ------------- ----------- ------------ -----------
Total comprehensive loss for
the year - - (1,126,339) (1,126,339)
-------------------------------- ------------- ----------- ------------ -----------
Balance as at 31 December
2018 41,247,016 726,453 (11,803,172) 30,170,297
-------------------------------- ------------- ----------- ------------ -----------
Balance as at 1 January 2019 41,247,016 726,453 (11,803,172) 30,170,297
------------- ----------- ------------ -----------
Lapsed options (note 16) - (224,150) 224,150 -
Issue of options (note 16) - 128,243 - 128,243
Issue of warrants (note 16) - 9,801 - 9,801
Issue of ordinary share capital
- nil par (note 15) 1,820,000 - - 1,820,000
Issue costs (note 15) (151,113) - - (151,113)
Total transactions with owners 1,668,887 (86,106) 224,150 1,806,931
-------------------------------- ------------- ----------- ------------ -----------
Loss for the year - - (405,534) (405,534)
-------------------------------- ------------- ----------- ------------ -----------
Total comprehensive loss for
the year - - (405,534) (405,534)
-------------------------------- ------------- ----------- ------------ -----------
Balance as at 31 December
2019 42,915,903 640,347 (11,984,556) 31,571,694
-------------------------------- ------------- ----------- ------------ -----------
Consolidated statement of cash flows
For the year ended 31 December 2018
Share capital Share-based Accumulated
nil par
value payment deficit Total
GBP GBP GBP GBP
Balance as at 1 January 2018 38,322,307 855,453 (10,805,833) 28,371,927
------------- ----------- ------------ -----------
Lapsed options (note 16) - (129,000) 129,000 -
Issue of ordinary share capital
- nil par (note 15) 3,150,000 - - 3,150,000
Issue costs (note 15) (225,291) - - (225,291)
Total transactions with owners 2,924,709 (129,000) 129,000 2,924,709
-------------------------------- ------------- ----------- ------------ -----------
Loss for the year - - (1,126,339) (1,126,339)
-------------------------------- ------------- ----------- ------------ -----------
Total comprehensive loss for
the year - - (1,126,339) (1,126,339)
-------------------------------- ------------- ----------- ------------ -----------
Balance as at 31 December
2018 41,247,016 726,453 (11,803,172) 30,170,297
-------------------------------- ------------- ----------- ------------ -----------
Balance as at 1 January 2019 41,247,016 726,453 (11,803,172) 30,170,297
------------- ----------- ------------ -----------
Lapsed options (note 16) - (224,150) 224,150 -
Issue of options (note 16) - 128,243 - 128,243
Issue of warrants (note 16) - 9,801 - 9,801
Issue of ordinary share capital
- nil par (note 15) 1,820,000 - - 1,820,000
Issue costs (note 15) (151,113) - - (151,113)
Total transactions with owners 1,668,887 (86,106) 224,150 1,806,931
-------------------------------- ------------- ----------- ------------ -----------
Loss for the year - - (405,534) (405,534)
-------------------------------- ------------- ----------- ------------ -----------
Total comprehensive loss for
the year - - (405,534) (405,534)
-------------------------------- ------------- ----------- ------------ -----------
Balance as at 31 December
2019 42,915,903 640,347 (11,984,556) 31,571,694
-------------------------------- ------------- ----------- ------------ -----------
Company statement of cash flows
For the year ended 31 December 2019
Company Company
31 December 31 December
2019 2018
Notes GBP GBP
Cash flows from operating activities
Operating loss (629,645) (577,675)
Finance income 151 6,992
Foreign exchange gain/(loss) on non-cash
items 223,961 (555,656)
Share options issued 16 128,243 -
Increase in trade and other receivables (1,611,012) (1,903,345)
Increase in trade and other payables 121,043 8,891
------------------------------------------- ----- ----------- -----------
Net cash used in operating activities (1,767,259) (3,020,793)
Cash flows from financing activities
Proceeds from issue of ordinary shares 15 1,720,000 3,150,000
Issue costs (141,312) (225,291)
Net cash generated by financing activity 1,578,688 2,924,709
Net decrease in cash and cash equivalents (188,571) (96,084)
Cash and cash equivalents at beginning
of year 245,672 341,756
------------------------------------------- ----- ----------- -----------
Cash and cash equivalents at end of year 57,101 245,672
------------------------------------------- ----- ----------- -----------
Notes
1. Publication of non-statutory accounts
The financial information, for the year ended 31 December 2019,
set out in this announcement does not constitute statutory
accounts.
This information has been extracted from the Group's financial
statements to that date upon which the auditors' opinion is
unmodified but contains material uncertainty on going concern.
2. Basis of preparation
The financial information, for the year ended 31 December 2019,
set out in this announcement, has been:
-- computed in accordance with EU-Adopted International
Financial Reporting Standards ("EU IFRSs"), however this
preliminary announcement does not contain sufficient information to
comply with IFRSs. The EU IFRSs compliant Consolidated Financial
Statements will be published in the Annual Report for the year
ended 31 December 2019; and
-- prepared on the basis of the accounting policies as stated in
the Annual Report for the year ended 31 December 2019.
3. Going concern
The consolidated financial statements are prepared on a going
concern basis with a reasonable expectation that the Group has
adequate resources to continue in operational existence for the
foreseeable future. The Group's total comprehensive loss after tax
for the year as at 31 December 2019 amounted to GBP2,176,804.
The Group raised GBP225,000 on 14 January 2020, GBP260,000 on 24
April 2020 and GBP2.8 million on 13 July 2020. These funds,
together with other potential financings, are sufficient to meet
the planned operational expenses and working capital for a further
twelve months. In addition, the Group will continue to evaluate all
options to maximise shareholder value, including a possible joint
venture arrangement. If the Group needs to raise further equity the
Directors are confident that these funds can be raised from
existing and new investors.
Since December 31, 2019, the spread of COVID-19 has severely
impacted many local economies around the globe. In many countries,
including Canada, businesses are being forced to cease or limit
operations for long or indefinite periods of time. Measures taken
to contain the spread of the virus, including travel bans,
quarantines, social distancing, and closures of non-essential
services have triggered significant disruptions to businesses
worldwide, resulting in an economic slowdown. Global stock markets
have also experienced great volatility and a significant weakening.
Governments and central banks have responded with monetary and
fiscal interventions to stabilize economic conditions.
The Group has determined that these events are non-adjusting
subsequent events. Accordingly, the financial position and results
of operations as of and for the year ended 31 December 2019 have
not been adjusted to reflect their impact. The duration and impact
of the COVID-19 pandemic, as well as the effectiveness of
government and central bank responses, remains unclear at this
time. It is not possible to reliably estimate the duration and
severity of these consequences, as well as their impact on the
financial position and results of the Group for future periods.
Covid-19 has resulted in delays to operations up and until the
financing plans could be completed, once these were finalised
exploration activities recommenced. The consolidated financial
statements do not include adjustments that would result if the
Group was unable to continue as a going concern.
4. Annual Report
The Annual Report for the year ended 31 December 2019, Notice of
the Annual General Meeting and Form of Proxy will shortly be
available on the Company's website at www.landore.com and will be
posted to shareholders on 27 July 2020.
The Annual General Meeting of Landore Resources Limited will be
held at La Tonnelle House, Les Banques, St Sampson, Guernsey, GY1
3HS on 20 August 2020 at 11.30 am.
Effect of COVID-19 regulations on the Annual General Meeting
In light of the Guernsey Quarantine Restrictions, the Company
strongly encourages all Shareholders not residing in Guernsey on
the date of this announcement to submit their Form of Proxy,
appointing the Chairman of the Annual General Meeting as proxy. If
the Guernsey Quarantine Requirements continue to apply on the date
of the Annual General Meeting, Shareholders who have arrived in
Guernsey within a period prior to the date of the Annual General
Meeting which is shorter than the quarantine period specified in
the Guernsey Quarantine Restrictions may not be allowed to attend
the Annual General Meeting in person and anyone who attempts to do
so may be refused entry. The situation regarding COVID-19 is
constantly evolving, and the Government of Guernsey may change
current restrictions or implement further measures relating to the
holding of general meetings during the affected period. Any changes
to the Annual General Meeting (including any change to the location
of the Annual General Meeting) will be communicated to Shareholders
before the meeting through our website at
https://www.landore.com/index.php and, where appropriate, by
announcement made by the Company to a Regulatory Information
Service. It is suggested that Shareholders consult
www.covid19.gov.gg for updates closer to the date of the
meeting.
Voting on the resolutions will be by way of a poll rather than a
show of hands. A poll ensures that the votes of Shareholders who
are unable to attend the Annual General Meeting, but who have
appointed proxies, are taken into account in the final voting
results.
Given the current restrictions on attendance in person,
Shareholders are encouraged to appoint the chair of the meeting as
their proxy rather than a named person who will not be permitted to
attend the physical meeting. Shareholders are further asked to
appoint the chair of the meeting as their proxy electronically
where possible.
Should Shareholders wish to ask any questions in relation to the
resolutions, which they may otherwise have asked at the Annual
General Meeting had they been in attendance, they are encouraged to
contact the Company prior to the Annual General Meeting by email to
whumphries@landore.com .
Shareholders will find accompanying the Notice of AGM, a Form of
Proxy, for use in connection with the Annual General Meeting. The
Form of Proxy should be completed and returned in accordance with
the instructions thereon so as to be received by the Company's
Registrar Agents, Computershare Investor Services (Guernsey)
Limited, as soon as possible and in any event not later 11.30am on
18 August 2020.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR EAFXDALEEEAA
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July 24, 2020 02:00 ET (06:00 GMT)
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