TIDMLND
RNS Number : 8998Y
Landore Resources Limited
07 January 2020
LANDORE RESOURCES LIMITED
(AIM Ticker: LND.L)
MINERAL RESOURCE ESTIMATE UPDATE
BAM GOLD DEPOSIT
JUNIOR LAKE PROPERTY
London, United Kingdom - 7 January 2020 - Landore Resources
Limited (AIM:LND) ("Landore Resources" or "the Company") is pleased
to confirm that Cube Consulting Pty Ltd has now completed an
updated, National Instrument 43-101 ("NI 43-101") compliant,
Mineral Resource Estimate on the BAM Gold Project, Junior Lake
Property, Ontario, Canada ("BAM Gold Deposit").
Highlights:
-- 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.
-- The February 2019 Preliminary Economic Assessment (PEA) for
the BAM Gold project provided a price sensitivity analysis of the
'Extended case' which, at a gold price of US$1,300, would produce a
Post Tax, Net Present value (NPV) of US$123.71m. At the current
gold price of US$1,560 that Post tax NPV would be elevated to
US$227.37m.
-- 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 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 favourable greenstone belt ranges from 0.5 to 1.5
kilometres wide and hosts multiple known gold occurrences including
the Lamaune Gold Prospect.
Commenting on this report, Chief Executive Officer of Landore
Resources, Bill Humphries, said:
"Landore's exploration effort for 2019 concentrated on
establishing the potential growth of the BAM Gold Project along
strike towards the existing Lamaune Gold project through the highly
successful Soil Sampling campaign together with exploration
drilling. Whilst the above infill drilling campaign continued to
convert Inferred mineralisation into Indicated resource ounces.
The directors believe that the continued growth of the BAM Gold
Deposit together with the possible future development of new
discoveries along this highly prospective 31 kilometre long Archean
greenstone belt has further enhanced the likelihood of the Junior
Lake Property hosting a multi-million ounce gold deposit."
Summer Drilling Campaign 2019:
An infill drilling campaign, consisting of 24 holes HQ diamond
core for a total of 3,966 metres, was completed on the BAM Gold
Deposit aimed at advancing the inferred portion of the existing
resource to the Indicated category for inclusion into the upgraded
Mineral Resource Estimate.
Up to November 2019, a total of 251 diamond drill holes for
approximately 45,686 metres have been completed in the BAM Gold
Project area, with a total of 207 holes for a total of 37,540
metres being used for the current Mineral Resource Estimate.
The results of the above drilling campaign have been
incorporated into the following Mineral Resource update.
"CUBE Mineral Resource Estimate (MRE) Executive Summary:
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 December 2019
following completion of the 2019 diamond drilling campaign at the
project in August 2019.
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 Project 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.
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"). Table 1 is a summary of
the Indicated and Inferred Mineral Resources, effective as of
30(th) November 2019. A JORC Code Table 1 checklist of assessment
and reporting criteria has been completed for the BAM January 2019
MRE.
Table 1: BAM Gold Project November 2019 MRE - In-situ Gold
Resources at Selected Cut-Offs (as at 30th November 2019)
Resource Min. Au g/t Tonnes Grade Contained
Category Domain cut off (kT) (g/t Metal (kOz
Au) Au)
Indicated ALL >0.0 25,537 0.94 772
--------- ---------- -------- ------ ------------
>0.3 21,930 1.06 747
-------------------------------- -------- ------ ------------
Inferred ALL >0.0 10,757 0.81 280
--------- ---------- -------- ------ ------------
>0.3 9,153 0.91 268
-------------------------------- -------- ------ ------------
Total ALL >0.0 36,293 0.90 1,052
--------- ---------- -------- ------ ------------
>0.3 31,083 1.02 1,015
-------------------------------- -------- ------ ------------
The objectives of the November 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.
Geology and Mineralisation
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. 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 lithology's, averaging at 280deg strike and steeply
dipping to the south between -65 to -80deg. Gold mineralisation
remains open along strike to the east and west, and down dip.
The gold mineralization 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 gold mineralization 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 (GPS). A preliminary petrographic study
carried out on a number of samples has identified the presence of
coarse native gold that is present in association with either
tourmaline, ankerite, or scheelite assemblages that occur within
calcite replacement patches and veinlets.
Drilling
From 2015 to 2019, Landore has completed several diamond
drilling campaigns at the BAM Gold Project. In 2019, Landore
completed a drill programme consisting of 38 HQ diamond drill holes
(0419-687 to 0419-724) for 5,946m. The aim of this programme was to
extend the existing BAM Gold Resource to the west (14 HQ holes) and
infill to nominal 50m E x 25m N spacing within the BAM pit design
areas (24 HQ holes).
The 2019 drilling has confirmed the continuity of the gold
mineralisation within the pit design areas resulting in conversion
of Mineral Resources from Inferred to Indicated, and also
demonstrated the continuation of the main BAM mineralisation to the
west to local grid line 400E.
The drilling has continued to show the close association between
gold mineralisation and the VTEM geophysical anomaly trend. The BAM
gold mineralisation trend has now been confirmed by diamond
drilling over a strike length 3.9km, extending from the local grid
line 400E and passed line 4000E. Drill testing has confirmed gold
mineralisation within the main BAM zone extends from below the
glacial till overburden (10m average depth) surface to a maximum
vertical depth of approximately 380m. The maximum width of the gold
mineralisation envelope being approximately 50m, down to minimum
mining width of 3m.
The 2019 drilling results also intersected additional narrow,
poddy gold mineralisation zones with the hanging wall GPS unit
within the West Pit design area.
Gold mineralisation hosted within the BAM sequence remains open
to the east and west and down dip.
Mineral Resource Estimation
The Mineral Resources for the BAM Gold Project were estimated by
Cube based on drill hole and assay data available up to 2(nd)
November 2019. The following key points summarise the modelling
process and key parameters used by Cube for the estimation
work:
-- Up to November 2019, a total of 251 diamond drill holes for
approximately 45,686m have been completed with the BAM Gold Project
area, with a total of 207 holes used the current MRE (37,540m).
-- 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 28
mineralised domains were modelled for the November 2019 MRE.
-- After assessment of all grade distribution and statistical
data analysis, it was decided 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 estimation
domains. Instead a cut-off threshold was applied beyond a set
distance away from the higher grade composites was applied (half
drill hole spacing or 25m).
-- Samples were composited to 2m within the main BAM 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. Narrower and less
continuous domains were composited to a 1m length.
-- 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 20m x 5m x 5m in the X, Y, Z directions
respectively was used and they were sub-blocked to 5m x 2.5m x
2.5m. 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 2 passes - 1st pass using optimum search
distances for each domain (max 100m) as determined through the KNA
process, with a 2nd pass set at longer distances in order to
populate all blocks (2nd = max >200m,).
-- Blocks have been classified as Indicated Mineral Resources or
Inferred Mineral Resources. 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. At lower depths and along
strike, with limited to no composite data, projected mean grades
were applied in the interpolation search - these areas were
assigned as unclassified material.
-- The estimation domaining, MRE parameters, classification and
block model report replication have all been internally peer
reviewed by qualified professionals at Cube.
The 2019 drilling resulted in the increase in Indicated and
Inferred Resource of 7% (contained metal) above a cut-off of 0.3g/t
Au compared with the Cube MRE reported in January 2019.
Pit Optimisation and Mine Design
Given the shallow nature of the mineralization and the initial
metallurgical test results, material could be extracted by means of
open pit mining methods and processed using conventional milling
techniques. 3DM modelling and block construction were created with
aim of preparing a suitable model for open pit mine design and pit
optimisation.
3DM modelling and block construction have been created with aim
of preparing a suitable model for open pit mine design and pit
optimisation, with a minimum mining width of 3m. Internal dilution
has been considered by re-blocking the resource block model, with a
maximum downhole width of 3m (2.5m true width) of sub-grade
material (<0.3g/t Au). The minimum block dimensions were
selected based on a mining SMU of 5mE x 2.5mN x 2.5mRL.
An information effect was applied to the model and as such, the
model was presented as a recoverable resource, implying that the
practicalities of the mining operations are accounted for in the
estimation process. As a result, Cube has not applied any further
mining dilution or ore loss factors to the model.
Metallurgy
A series of metallurgical test programs have been carried out on
samples from the BAM Gold Deposit. ALS Metallurgy Americas was
engaged by LND in December 2016 to carry out a preliminary
assessment of the metallurgical response of two composite samples
from the BAM East Gold Project. Between 98% and 99% of the feed
gold was recovered through combined gravity concentration and
cyanidation leaching of gravity tails for the two composites
tested. Gold leach kinetics were fast, with most of the gold
extraction taking place within the first six hours. Gold head
grades were calculated at 2.0 g/t for both composites based on
combined gravity and cyanidation leach test results (Sloan and
Roulston, 2016).
LND completed additional metallurgical testing on the BAM Gold
Project in September of 2017 using samples collected from a drill
hole completed in the 2017 drilling program (Sloan and Roulston,
2017). This additional test work was designed to assess the
metallurgical response of two additional mineralized samples from
the BAM East gold mineralisation, and to provide a determination of
the gold feed grade using gravity and cyanidation leach techniques,
identical to those employed for the 2016 metallurgical test work.
The metallurgical performance was excellent for both tested
composites. Leach kinetics were rapid with most of the gold
extraction completed within two to six hours, the combined gold
recovery and cyanidation leach gold extractions for both composite
samples measured between 97% to 99%, and the sodium cyanide and
lime consumption was very low (<0.1 kg/tonne and 0.3 kg/tonne,
respectively). Results indicate that a combination of gravity
concentration followed by cyanidation leaching of the gravity tails
would be an effective flowsheet for the composites tested.
Exploration Potential
The step out drilling conducted for the 2019 drilling program
further confirmed the correlation of an IP anomaly from geophysics
conducted in 2004 with the main BAM gold mineralisation trend to
the west, which remains open and un-tested.
Future drill testing recommendations to target gold
mineralisation still open along strike and down dip and further
targets identified and based on the following data are listed as
follows:
-- Highly prospective soil geochemistry results based on sampling in 2019.
-- IP anomaly targets have been identified by LND previously in
2004 and related to FW massive to disseminated sulphides zones
within the main BAM Au mineralised units. In addition there are 3
to 4 WNW trending anomalies that are possible targets for
exploration drilling (northern anomalies), and step-out drilling
along strike from the BAM sequence;
-- Regional Prospectivity - other gold mineralisation targets
along the 31km strike length of the Junior Lake Shear (Lamaune) and
historic discovery at Toronto Lake.
Cube is an Australian owned geological and mining engineering
consulting services company located in Perth, Western Australia.
Brian. Fitzpatrick, BSc (Geology) MAusIMM CP, is a Principal
Geologist with Cube and has worked as a geologist for more than 34
years since graduation from the University of Tasmania. Mr
Fitzpatrick has sufficient experience in Archaean greenstone gold
hosted mineralisation and the 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 gold mineralisation domains and
for the grade estimation. He conducted a site visit to the Junior
Lake property from 23rd to 28th June 2018.
End of CUBE Mineral Resource Estimate (MRE) Executive
Summary"
Planning:
A drilling programme is under consideration to further extend
the known BAM Gold Zone to the east and west and to test any
potential mineralisation identified in the recently completed Soil
Sampling Exploration program (as reported 9(th) December 2019).
In addition, several deep holes are planned to test the
continuity of high grade mineralisation below the existing BAM Gold
Deposit.
BAM Gold Deposit:
The BAM Gold Deposit, discovered in December 2015, 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 (Gabbro) Sill and the BAM Sequence. The host rock units
strike in an east-southeast direction (average of azimuth 105deg)
and dip steeply to moderately to the south at 70 to 80 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.
BAM Gold Resource and PEA:
A Technical Report and Preliminary Economic Assessment ("PEA")
of the BAM Gold Project was reported 20(th) February 2019. The
report 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.
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 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.
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
Derrick Lee / Peter Lynch Tel: 0131 220 6939
Cenkos Securities plc
Nominated Advisor and Broker
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No 596/2014.
Glossary of Key Terms
"assay" The chemical analysis of rock or ore samples
to determine the proportions of metals
"Au" chemical symbol for gold
"diamond drilling" drilling method which obtains a cylindrical
core of rock by drilling with an annular
bit impregnated with diamonds
"drill core" The cylindrical rock samples obtained by
means of annular-shaped rock-cutting bits
rotated by a borehole-drilling machines
"g/t" grams per tonne, equivalent to parts per
million
"grade" relative quantity or the percentage of ore
mineral or metal content in an ore body
"greenstone" green, chlorite rich, generally metavolcanic
rocks resulting from low temperature and
pressure metamorphism
"indicated resource" that part of a Mineral Resource for which
tonnage, densities, shape, physical characteristics,
grade and mineral content can be estimated
with a reasonable level of confidence. It
is based on exploration, sampling and testing
information gathered through appropriate
techniques from locations such as outcrops,
trenches, pits, workings and drill holes.
The locations are too widely or inappropriately
spaced to confirm geological and/or grade
continuity but are spaced closely enough
for continuity to be assumed
"inferred resource" that part of a Mineral Resource for which
tonnage, grade and mineral content can be
estimated with a low level of confidence.
It is inferred from geological evidence
and assumed but not verified geological
and/or grade continuity. It is based on
information gathered through appropriate
techniques from locations such as outcrops,
trenches, pits, workings and drill holes
which may be limited or of uncertain quality
and reliability
"IP" an electromagnetic geophysical method that
uses electrodes with time-varying currents
and voltages to map the variation of electrical
permittivity (dielectric constant) in the
earth at low frequencies
"Kriging" A method of interpolation which predicts
unknown values from data observed at known
locations. It uses the variogram to express
spatial variation, and minimizes the error
of predicted values that are estimated by
spatial distribution of the predicted values
"mineral resource" a concentration or occurrence of material
of intrinsic economic interest in or on
the earth's crust in such form that there
are reasonable prospects for eventual economic
extraction. The location, quantity, grade,
geological characteristics and continuity
of a mineral resource are known, estimated
or interpreted from specific geological
evidence and knowledge. Mineral resources
are sub-divided, in order of increasing
confidence, into Inferred and Indicated
categories
"mineralisation" process of formation and concentration of
elements and their chemical compounds within
a mass or body of rock
"NI 43-101"
The reporting standard adopted for the reporting
of the Mineral Resources is that defined
by the terms and definitions given in the
terminology, definitions and guidelines
given in the Canadian Institute of Mining,
Metallurgy and Petroleum (CIM) Standards
on Mineral Resources and Mineral Reserves
(December 2005) as required by NI 43-101.
The CIM Code is an internationally recognised
reporting code as defined by the Combined
Reserves International Reporting Standards
Committee
"reserve" the economically mineable part of a Measured
and/or Indicated Mineral Resource
"SMU" selective mining unit-sized blocks
"strike length" the longest horizontal dimension of an orebody
or zone of mineralisation
"strike" The direction, or bearing from true north,
of a vein or rock formation measure on a
horizontal surface
"veinlets" a deposit of non-sedimentary origin, which
may or may not contain valuable minerals
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
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