Over the past few years Landore Resources Ltd (LON:LND) has been steadily building up a comprehensive body of data on the mineralisation on its ground at Junior Lake in Ontario, Canada. This mineralisation is varied and diverse, and includes in separate and overlaying parts of Junior Lake gold, copper, nickel, several platinum group elements, and cobalt.
Experienced management team
This highly prospective ground is in safe hands with Richard Prickett and Bill Humphries, two veterans of the resources sector who enjoyed considerable success in the early part of the last decade with the creation and sale of Brancote Resources. Both were also key figures at Patagonia Gold.
Gold resource at BAM East
The BAM East gold deposit on Junior Lake is a relatively new discovery, but Landore has nonetheless made great strides with it in a short time. Already the NI 43-101 resource amounts to 400,000 ounces of open-pittable gold grading 1.37 grams per tonne. Currently the deposit remains open along strike, down dip and to the east and west, so there’s plenty more potential.
What’s more, metallurgical testwork has indicated that gold recoveries are likely to run at between 97% and 99%, which is very high, and is likely to make for a very efficient operation.
Landore’s aspiration is that this project can be developed at a low capital cost, and that operating costs will be in the lowest quartile in the industry.
The plan for 2018 is to boost the resource base to over a million ounces of gold
Nickel, platinum and other metals at B4-7
In addition to the BAM East project, Landore has undertaken significant work on the B4-7 deposit, which also lies on the Junior Lake property.
At the last count, the resource at B4-7 amounted to 3,292,000 tonnes of ore grading 1.2% nickel equivalent in the indicated category, with an additional 568,000 tonnes grading 1.26% inferred. That works out at a total of 46,661 tonnes of contained metal, with more than 21,000 tonnes of that available in a conceptual open pit.
The deposit remains open along strike and at depth, and a new exploration target has been identified down dip which may contain as much as between 1.5mln tonnes and 2mln tonnes of new ore.
“We are very pleased with the significant increase in the B4-7 Deposit resource and its potential for continued growth,” says Bill Humphries.
“The burgeoning world prices of all of the B4-7 deposit's contained metals, nickel-copper-cobalt-platinum-palladium and gold, together with the deposit's proximity to the BAM East gold deposit with obvious development synergies, has further highlighted the prospectivity of the Junior Lake Property.
He added that for now at least, BAM East will remain the priority.
New funding in place to support extensive development work
In early April 2018, Landore shareholders approved Landore’s conditional raising of £3.15mln via a placing and subscription of shares and associated warrants.
The money raised will allow Landore to undertake a 12,000 metre drilling campaign at BAM East designed to bring the deposit up to the million ounce mark. It will also enable the company to complete a preliminary economic assessment on the project.