Resource Update - Junior Lake

LANDORE RESOURCES LIMITED

(AIM Ticker: LND.L)

 

 

                         17th January 2013

 

RESOURCE UPDATE

B4-7 NICKEL-COPPER-COBALT-PGEs PROJECT

JUNIOR LAKE PROPERTY

 

London, United Kingdom - 17^th January 2013 - Landore Resources Plc ( AIM:LND) ("Landore Resources" or "the Company") today announces an updated resource estimate for the B4-7 Nickel-Copper project in its Junior Lake property, Ontario, Canada.

 

Highlights:

 

·     Drilling on the B4-7 Deposit during 2012 has successfully increased the combined open pit and underground resource, now all within the Indicated category, to 2,695,000 tonnes at 1.24% Nickel equivalent (NiEq) for 33,248 tonnes of contained metal.

·     An Exploration Target has been identified along strike and down dip from the above resource 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. 

·     An infill and extension drilling campaign is currently in-progress on the Exploration Target.

 

 Commenting on this report, the Chairman of Landore Resources, Bill Humphries, said:

"Landore Resources has successfully and significantly increased the size and confidence level of the B4-7 resource, all in the Indicated category. In addition we believe that the resource is capable of further material enlargement.  The updated B4-7 resource together with the nearby VW Nickel resource allows Landore to proceed with pre-feasibility studies.  Landore is well-poised to advance the project towards production in 2015-16."

 

RPA Inc. (RPA) of Toronto, Canada, was retained by Landore Resources to complete an updated Mineral Resource estimate and a NI 43-101 Technical Report on the B4-7 Deposit, on Landore's Junior Lake property, located near Armstrong, Ontario.

 

MINERAL RESOURCE TABLES  

Tables 1, 2, and 3 list Mineral Resources at the B4-7 Deposit.  All resources were classified as Indicated. 

Table 1   Mineral Resources for the B4-7 Deposit
Landore Resources Canada Inc. - Junior Lake Project
Zone	Tonnes	Ni (%)	Cu (%)	Co (%)	Pt (g/t)	Pd (g/t)	Au (g/t)	Total NSR (C$)	Ni Eq. (%)
Indicated Resources:
Open Pit	849,000	0.69	0.46	0.06	0.12	0.56	0.03	82.55	1.22
Underground	1,846,000	0.70	0.46	0.07	0.15	0.54	0.03	83.76	1.24
Total Indicated	2,695,000	0.70	0.46	0.07	0.14	0.55	0.03	83.37	1.24

 

Notes:

1.   CIM definitions were followed for Mineral Resource estimation and classification.

2.   Mineral Resources are estimated using average long-term metal prices (US$) of $9.00/lb nickel, $3.50/lb copper, $16.00/lb cobalt, $1,700/oz platinum, $800/oz palladium, and $1,300/oz gold.

3.   Open Pit Mineral Resources are reported at an NSR cut-off grade of C$23.  Underground Mineral Resources are reported at an NSR cut-off grade of C$58.

4.   Totals may not add correctly due to rounding.

5.   The Mineral Resource estimate uses drill hole data available as of November 19, 2012.

 

Table 2 presents the in-pit resources at four NSR cut-off values for those blocks that lie above the open pit shell, while Table 3 reports resources at four NSR cut-off values for those blocks inside of the C$58 NSR wireframe that lie below the open pit shell. 

 

Table 2   in-pit Tonnes and Grade By cut-off Values
Landore Resources Canada Inc. - B4-7 Deposit
NSR Cut-Off (C$)	Tonnes	Ni (%)	Cu (%)	Co (%)	Pt (g/t)	Pd (g/t)	Au (g/t)	Total NSR (C$)	Ni Eq (%)
20	849,000	0.69	0.46	0.06	0.12	0.56	0.03	82.55	1.22
23	849,000	0.69	0.46	0.06	0.12	0.56	0.03	82.55	1.22
25	849,000	0.69	0.46	0.06	0.12	0.56	0.03	82.55	1.22
30	845,000	0.69	0.46	0.06	0.12	0.56	0.03	82.82	1.23

Notes:

1.   CIM definitions were followed for Mineral Resource estimation and classification.

2.   Mineral Resources are estimated using average long-term metal prices (US$) of $9.00/lb nickel, $3.50/lb copper, $16.00/lb cobalt, $1,700/oz platinum, $800/oz palladium, and $1,300/oz gold.

3.   Open Pit Mineral Resources are reported at an NSR cut-off grade of C$23.

4.   Totals may not add correctly due to rounding.

5.   The Mineral Resource estimate uses drill hole data available as of November 19, 2012.

 

Table 3   underground Tonnes and Grade By cut-off Values
Landore Resources Canada Inc. - B4-7 Deposit
NSR Cut-Off (C$)	Tonnes	Ni (%)	Cu (%)	Co (%)	Pt (g/t)	Pd (g/t)	Au (g/t)	Total NSR (C$)	Ni Eq (%)
58	1,846,000	0.70	0.46	0.07	0.15	0.54	0.03	83.76	1.24
70	1,525,000	0.74	0.50	0.07	0.15	0.58	0.03	89.15	1.32
80	1,158,000	0.78	0.54	0.07	0.15	0.59	0.03	93.65	1.39
90	727,000	0.81	0.58	0.08	0.14	0.61	0.04	98.74	1.46

Notes:

1.   CIM definitions were followed for Mineral Resource estimation and classification.

2.   Mineral Resources are estimated using average long-term metal prices (US$) of $9.00/lb nickel, $3.50/lb copper, $16.00/lb cobalt, $1,700/oz platinum, $800/oz palladium, and $1,300/oz gold.

3.   Underground Mineral Resources are reported at an NSR cut-off grade of C$58.

4.   Totals may not add correctly due to rounding.

5.   The Mineral Resource estimate uses drill hole data available as of November 19, 2012.

 

The block model was prepared using two wireframes.  An initial wireframe was constructed using a C$23 Net Smelter Return (NSR) cut-off grade across a nominal minimum mining width of two metres with the objective of outlining that portion of the mineralization that may be amenable to open pit mining methods.  A second wireframe was constructed using a C$58 NSR cut-off grade across a minimum mining width of 1.5 m with the objective of outlining the portion of the mineralization that may be amenable to underground mining methods.  The grades of the six metals were interpolated into the blocks using ordinary kriging and used composite grades that were density-weighted.  The bulk density used to develop the tonnage reports was based on the relationship with nickel grades.

 

The data for the six metals were capped prior to compositing using the following limits:  Ni - 1.3%, Cu - 3.0%, Co - 0.3%, Pt - 1.0 g/t, Pd - 3.4 g/t, and Au - 0.3 g/t.  A set of NSR factors were calculated as follows: 67.47 x Ni%, 50.95 x Cu%; 81.85 x Co%; 0 x Pt ppm; 12.87 x Pd ppm; and 9.26 x Au ppm.  The US$/C$ exchange rate used is 1.0.

 

Exploration Potential

Geophysical (magnetic) surveying of the B4-7 Deposit area has discovered the presence of a linear, east-west striking magnetic anomaly.  Initial comparison of the results of the modelling of the Ni-Cu-PGM mineralization with this magnetic anomaly reveals that, for the most part, the mineralization is located along the northern contact of the magnetic anomaly (Figure 1).  The western projection of this contact is considered to hold good potential for the discovery of additional B4-7 type mineralization.  This view is supported by the results from recently completed drill hole 0412-446 which intersected an average grade of 0.52% Ni, 0.88% Cu, 0.06% Co, 0.02 g/t Pt, 0.43 g/t Pd, and 0.03 g/t Au along a core length of 11.57 m.  RPA recommends that the source of the magnetic anomaly be explained from a lithologic perspective and the genetic relationship with the mineralization be studied.  Should a genetic link be demonstrated or suspected, the southern contact of the magnetic anomaly may hold potential for hosting additional sulphide mineralization.

 

An initial review of the drill hole layouts in plan view suggests that several portions of the northern contact of the magnetic anomaly may have been tested by drilling.  However, examination of the three-dimensional relationships shows that many of these drill holes may have tested the contact at too shallow a depth.  RPA believes that while the limits of the mineralization appear to have been defined along the eastern strike extension, the extensions of the mineralization along plunge at depth and along strike to the west at depth remain untested by drilling and this area offers good potential of locating additional nickel-copper bearing sulphides (Figure 2).  Geometric modelling on a reserved basis using an assumed average thickness of 5.0 m and an average density of 4.0 tonnes/m³ suggests that further drilling has the potential of outlining an additional 1.5 Mt to 2.0 Mt of sulphide mineralization of similar range grade to that which has been outlined to date.  RPA recommends that additional drilling be carried out to test the western strike extensions at depth and the down-plunge projection of the B4-7 deposit.

 

Alpha Zone

A number of mineralized intervals have been intersected by drilling which are located to the north (hangingwall) of the B4-7 massive sulphide lens, and have been referred to as the Alpha Zone by previous workers.  For example, drill hole 0407-167 intersected an average of 0.29% Ni, 0.12% Cu, 0.02% Co, 0.08 g/t Pt, 0.32 g/t Pd, and 0.01 g/t Au along a core length of 9.81 m (123.00 m to 132.82 m) and a second interval that averaged 0.22% Ni, 0.09% Cu, 0.01% Co, 0.47 g/t Pt, 2.40 Pd, and 0.01 g/t Au along a core length of 20.37 m (186.00 m to 206.39 m).  While initial attempts to create a solid model for this material were not successful, RPA believes that further effort is warranted.  RPA recommends that additional study be focussed on this Alpha Zone-style mineralization so as to better the understanding of the structural, lithological, and genetic characteristics of this style of mineralization.  Should these studies provide positive results, the potential exists to consider portions of this Alpha Zone as mineral resources.

 

The Junior Lake property:

The Junior Lake property, 100% owned by Landore, is located in the province of Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay, and is host to; the B4-7 Nickel-Copper-Cobalt-PGMs deposit, the VW Nickel deposit, the B4-8 prospect and numerous other highly prospective mineral occurrences.

 

B4-7 Nickel-Copper-Cobalt-PGEs deposit:

The B4-7 deposit mineralisation is hosted within a sub-vertical massive sulphide vein with stringers, net-textured and disseminated sulphides in the immediate hanging wall.

 

The B4-7 main massive sulphide vein has been interpreted to be a pinch and swell structure emplaced along a strike slip/normal fault or series of parallel faults. Massive sulphide mineralisation occurs at and near surface within the eastern 500 metre portion of the B4-7 deposit, and occurs at increasingly deeper levels moving west.

 

During 2012, infill and extension drilling was conducted on the eastern and western portion of the B4-7 deposit aimed at enlarging and bringing Inferred portions of the deposit to Indicated resource category. A total of 96 NQ size diamond core drill holes from 0412-367 to 0412-362 and 5 re-entry drill holes, for 22,827 metres, were completed. The program was highly successful, the results of which are reflected in the current resource estimate.

 

In addition to the drilling, a deep penetrating 'Direct Current Induced Polarization' (DCIP) and Magnetotellurics (MT) survey has been completed on the Scorpion Zone. Results of the DC Resistivity section of the survey received to date are highly promising indicating the potential extension of the B4-7 mineralisation to line 800W. Results for IP Chargeability and the MT survey are currently being collated. 

 

2013 Planned Works:

Exploration and resource drilling has commenced along strike to the west of the B4-7 deposit in the newly identified Exploration Target.  

 

Pre-feasibility studies, including metallurgical and geotechnical works, on the combined B4-7 and the VW deposits will be initiated in Q1 2013.

 

QAQC

Landore has in place a stringent quality assurance and quality control programme to ensure best practices in sampling and assaying. All samples from the B4-7 project were collected by employees of Landore and shipped directly to ALS Laboratories, Thunder Bay, (ISO 9001 Certified) for preparation and assay in sealed bags. All samples are assayed for gold, platinum and palladium by fire assay, and nickel, copper, and cobalt by aqua regia digestion with AA finish, according to ALS's procedures PGM-ICP23, Ni Cu AA46, and Co AA45. Inductively-coupled plasma ("ICP") analyses for a suite of multi-elements (35 elements, including base metals and silver) were performed by procedure ME-ICP41.

 

Reno Pressacco, (P.Geo.), Principal Geologist of RPA Inc. Toronto, Canada, a Qualified Person as defined in NI 43-101, and responsible for the preparation of the B4-7 resource estimate, has reviewed and verified all scientific or technical disclosure relating to the mineral resource estimate and exploration potential.

 

Michele Tuomi, (P.Geo., BSc. Geology), Exploration Manager 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 Ltd.

 

Landore Resources Ltd. 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 Nickel Project, anticipated to enter into pre-feasibility stage Q1 2013. Landore Resources has mineral rights to 5 properties in eastern Canada.  The Company is headquartered in London, UK, with an exploration office located in Thunder Bay, Ontario, Canada.

 

Landore Resources is listed on the AIM market of the London Stock Exchange under the symbol LND.

 

Cautionary Statement Regarding Forward-Looking Information

This news release includes certain information that may constitute "forward-looking information" under applicable securities legislation. Forward looking information includes, but is not limited to, forecasts as to free-cash flow, strategic plans, mineral resources estimates, future operations, results of exploration, future works programs, capital expenditures and objectives. Forward-looking information is necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in the Company's public disclosure. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

 

For more information please contact:

 

Bill Humphries, Chairman Richard Prickett, Chief Executive Officer Landore Resources Limited	Tel: 07734 681262 Tel: 07775 651421 www.landore.com
Angela Hallett / James Spinney Strand Hanson Limited Nominated Adviser   Katherine Roe / Adam Pollock Panmure Gordon & Co Broker	Tel: 020 7409 3494         Tel: 020 7886 2500
David Bick	Tel: 07831 381201

 

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