LANDORE RESOURCES LIMITED
("Landore Resources" or "the Company")
(AIM Ticker: LND.L)
MINERAL RESOURCE ESTIMATE UPDATE
BAM GOLD DEPOSIT
JUNIOR LAKE PROPERTY
London, United Kingdom - 7 August 2018 - Landore Resources Limited (AIM:LND) ("Landore Resources" or "the Company") is pleased to provide a Mineral Resource Estimate Update on the BAM Gold Deposit on its Junior Lake Property, Ontario, Canada ("BAM Gold Deposit").
Landore Resources engaged independent mining engineers, CUBE Consulting Pty Ltd of Perth, Australia, to re-model and update the Mineral Resource Estimate (MRE) for the BAM Gold Deposit such that it is suitable for ongoing mining and economic studies. The estimation work, based solely on the 2015-2017 drilling campaigns, was completed following a site visit in July 2018.
Highlights of the Report:
· The new MRE modelling has increased the BAM Gold resource:
18,588,000 tonnes (t) at 1.04 grams/tonne (g/t) for 623,000 ounces of gold including 13,864,000t at 1.09g/t for 486,000 ounces gold in the Indicated Category.
· In addition the estimation work has also modelled potential mineralised material in target areas adjacent to the current delineated deposits for a possible 24,241,000t at 0.88g/t ounces gold for a further 686,000 ounces gold, in the 'Unclassified' material category.
· The current 2018 drilling campaign, the impact of which is not included in the estimation work being reported, is concentrating within the above target areas containing the 'Unclassified' material and has successfully intersected widespread gold mineralisation of similar grade to the BAM Gold Deposit.
The BAM Gold Project Mineral Resources have been classified in accordance with the 2012 Australian Code for Reporting of Mineral Resources and Ore Reserves ("JORC Code").
Note: 'Unclassified' material is not a JORC compliant category and has been modelled purely for potential exploration target volume and grade and cannot be utilised for any economic assessment.
CUBE has also been appointed to update the MRE and prepare a Technical Report for the BAM Gold Deposit following completion of the current drilling campaign currently estimated for Q4 2018. The updated MRE together with the preliminary pit optimisation will form the basis for the Preliminary Economic Assessment ("PEA") scheduled for completion Q1 2019.
Commenting on this report, Chief Executive Officer of Landore Resources, Bill Humphries, said:
"The modelled BAM Gold resource of 623,000 ounces of gold has provided a significant uplift from the resource of 400,000 ounces of gold we reported in December 2017 without including any results from the already successful 2018 drilling programme. Management is confident that this current programme will provide a further significant uplift towards achieving our targeted one million ounces gold.
We look forward to reporting on drilling activity over the coming months and to the results of the updated MRE.
A full copy of the CUBE site visit Summary and Model Update Review and Block Model Classification Image together with the JORC code check list can be found on Landore's web site www.landore.com and also via the links below
Cube Site Visit Summary and Model Update Review
http://www.rns-pdf.londonstockexchange.com/rns/9740W_1-2018-8-6.pdf
Block Model Classification Image
http://www.rns-pdf.londonstockexchange.com/rns/9740W_2-2018-8-6.pdf
JORC Code Checklist
http://www.rns-pdf.londonstockexchange.com/rns/9740W_3-2018-8-6.pdf
CUBE Mineral Resource Estimate Introduction:
Cube Consulting Pty Ltd ("Cube") was engaged by Landore Resources Canada Inc. (Landore) to update the Mineral Resource estimate ("MRE") of the gold mineralisation for the BAM Gold Project. The estimation work was completed in July 2018.
The BAM Gold Project Mineral Resources have been classified in accordance with the 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves ("JORC Code"). A JORC Code Table 1 checklist of assessment and reporting criteria has been completed for the BAM July 2018 MRE.
Table 1: BAM Gold Project July 2018 MRE - In-situ Gold Resources at Selected Cut-Offs (as at 12th July 2018)
Resource Category |
Domain |
Au g/t cut off |
Tonnes (kT) |
Grade (g/t Au) |
Contained Metal (kOz Au) |
Indicated |
ALL |
>0.0 |
14,502 |
1.05 |
491 |
|
|
>0.3 |
13,864 |
1.09 |
486 |
|
|
|
|
|
|
Inferred |
ALL |
>0.0 |
4,812 |
0.89 |
137 |
|
|
>0.3 |
4,724 |
0.90 |
137 |
|
|
|
|
|
|
Total |
ALL |
>0.0 |
19,314 |
1.01 |
628 |
|
|
>0.3 |
18,588 |
1.04 |
623 |
|
|
|
|
|
|
Unclassified |
ALL |
>0.0 |
24,367 |
0.88 |
687 |
|
|
>0.3 |
24,241 |
0.88 |
686 |
|
|
|
|
|
|
All Material |
ALL |
>0.0 |
43,681 |
0.94 |
1,315 |
|
|
>0.3 |
42,830 |
0.95 |
1,308 |
Landore is a fully-owned subsidiary of Landore Resources Ltd., which is based in Guernsey, UK, and listed on the AIM market of the London Stock Exchange. The BAM Gold Deposit, is located within Landore's Junior Lake Project, located approximately 235 km north-northeast of Thunder Bay, Ontario, and approximately 75 km east-northeast of the village of Armstrong Ontario, Canada.
Cube is an Australian owned company providing geological and mining engineering consulting services and software systems to the resources and industrial sectors. The organisation is well resourced with an established office in Perth, Western Australia and has undertaken work for a substantial number of clients. Cube Consulting comprises a team of technical professionals dedicated to providing excellence of services in their field of expertise. Brian. Fitzpatrick, BSc (Geology) MAusIMM CP, is a Principal Geologist with Cube and has worked as a geologist for more than 33 years since graduation from the University of Tasmania. Mr Fitzpatrick has sufficient experience which is relevant to the style of mineralisation and type of resource under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code, 2012 Edition. Mr Fitzpatrick has assumed the responsibility of the Competent Person for the data, the interpretation of mineralisation and for the grade estimation. He conducted a site visit to the Junior Lake property from 23rd to 28th June 2018.
The objectives of the MRE were to quantify the global in-situ gold resource, provide models suitable for pit optimisation, mine planning, and MRE reporting with assigned Mineral Resource classification categories, after incorporating all available drilling data and geological interpretations provided by Landore. For the purposes of the Cube MRE work the BAM East Gold Prospect and the original BAM Prospect to the west of BAM East have been combined in the MRE and collectively called the BAM Gold Project.
The BAM Gold Deposit is located in the south-central area of the Junior Lake property and is interpreted as an Archaean mesothermal gold deposit in which gold mineralization is hosted by sheared and altered rocks of the Grassy Pond Sill and the BAM volcano-sedimentary sequence. The host rock units strike in an east-southeast direction dip steeply to moderately to the south. Mineralised structures appear to strike at approximately parallel to lithologies, averaging at 280° strike and steeply dipping to the south between -65 to -80°. Gold mineralisation remains open along strike to the east and west, and down dip.
From 2015 to 2017, Landore completed several diamond drilling campaigns at the BAM Gold Project. Up to September 2017, a total of 117 diamond drill holes for approximately 20,310m have been completed at the BAM East Gold Deposit with 113 holes used the current MRE. Together, these drilling programs have been successful in demonstrating the continuity of the main gold mineralization by closely spaced drill holes (on a 50m x 50m pattern) along a strike length of approximately 1,100m and from surface to a vertical depth of approximately 380m. Drill testing along strike has intersected mineralisation over a total strike length of 3000m covering both the BAM zone and BAM East mineralisation. The maximum width of the mineralisation envelope being approximately 50m, down to minimum mining width of 3m.
The Mineral Resources for the BAM Gold Project were estimated by Cube based on drill hole and assay data available up to September 2017. The following key points summarise the modelling process and key parameters used by Cube for the estimation work:
· Geological and mineralisation interpretations in plan and cross sections were followed up with 3D wireframe models based on analysis of all the recent information collated. A total of 15 mineralised domains were modelled for the July 2018 MRE;
· After assessment of all domains, it was decided by Cube that no grade capping would be used for any of the domains as there was either no material difference when applying suitable top cut values, or there were no significant grade outliers within the compositing data inside the mineralisation. Instead a cut-off threshold was applied beyond a set distance away from the extreme sample was applied;
· Samples were composited to 2m within each estimation domain in order to reduce the variability inherent in raw samples or a smaller composite length relative to estimation resource model block dimensions. The 2m composite length is also closer to mining SMU for a large bulk mining open pit scenario;
· Variogram modelling conducted to provide parameters for OK estimation method - nugget, sill and range for 3 directions;
· Kriging Neighbourhood Analysis ("KNA") was used to assist with assessing the most appropriate block sizes and other estimation parameters such as minimum and maximum samples, discretisation, to be used for the estimation;
· Parent block size of 25m x 12.5m x 12.5m in the X, Y, Z directions respectively was used and they were sub-blocked to 6.25m x 1.5m x 1.5m. This was deemed to be appropriate for block estimation and modelling the selectivity for an open pit operation;
· Ordinary Kriging ("OK") estimation method was used to estimate gold into the 3D block model using spatial data analysis parameters informed from the variogram and KNA analyses;
· Au estimated in 3 passes - 1st pass using optimum search distances for each domain (max 100m) as determined through the KNA process, 2nd pass and 3rd pass used, set at longer distances in order to populate all blocks (2nd = max 200m, 3rd > 200m);
· Blocks have been classified as indicated, inferred or as unclassified material. The resource classification is based on the quality of information for the geological domaining, as well as the drill spacing and geostatistical measures to provide confidence in the tonnage and grade estimates; and
· The estimation domaining, MRE parameters, classification and block model report replication have all been internally peer reviewed by qualified professionals at Cube.
End of CUBE Introduction:"
About the BAM East Gold Resource:
The BAM Gold Deposit is located in the south central area of the Junior Lake property and is interpreted as an Archean-aged mesothermal gold deposit in which gold mineralisation is hosted by sheared and altered rocks of the Grassy Pond Sill and the BAM Sequence. The host rock units strike in an east-southeast direction (average of azimuth 105°) and dip steeply to moderately to the south at 70 to 75 degrees. The gold mineralisation is interpreted to reside within a series of tabular shaped zones that are oriented in a roughly en-echelon configuration and are generally parallel to the overall strike of the host rock units.
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 26,593 hectares, is located in the province of Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay.
A highly prospective Archean greenstone belt traverses the Junior Lake Property from east to west for approximately 31 kilometres. The greenstone belt ranges from 0.5 to 1.5 kilometres wide and contains all of Landore Resources' stated mineral resources and prospects. However, the greater proportion of this belt remains unexplored.
Brian Fitzpatrick, (MAusIMM CP.), Principal Geologist of Cube Consulting Pty Ltd., Perth, Western Australia, a Qualified Person as defined in JORC Code, 2012 Edition, and responsible for the preparation of the BAM Gold Project Resource Estimate, has reviewed and verified all scientific or technical disclosure relating to the Mineral Resource Estimate.
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, 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: 07734 681262
Richard Prickett, Finance Director Tel: 07775 651421
Landore Resources Limited www.landore.com
James Spinney / Jack Botros Tel: 020 7409 3494
Strand Hanson Limited
Nominated Advisor
Neil McDonald / Beth McKiernan / Peter Lynch Tel: 01312209771
Cenkos Securities plc
Broker
This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No 596/2014.
