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Landore Resources Ltd.: DEEP DIVE

Landore Resources beginning to turn extensive mineralisation at Junior Lake to account

Landore has made rapid progress with the BAM project
Landore Resources beginning to turn extensive mineralisation at Junior Lake to account
OVERVIEW: LND The Big Picture
The BAM project contains nearly a million ounces of gold
  • Highly attractive gold project
  • Located in one of the world’s best mining jurisdictions
  • Experienced management team with decades of experience
  • Wider exploration and development portfolio adds diversity

What does Landore Resources do?

Landore Resources LTD (LON:LND) is a mining and exploration development company that is run by experienced mining industry professionals Richard Prickett and Bill Humphries. Between them Prickett and Humphries engineered the rise and subsequent sale of Brancote, one of the first mining success stories of the Aim market. Since then, they have gone on to create and run other mining companies, including Patagonia Gold, and Landore.

What does Landore Resources own?

The Landore portfolio is centred around the Junior Lake property in Ontario, one of the most attractive mining regions in the world.

Junior Lake plays host to Landore’s BAM project, which contains just over 950,000 ounces of gold, and which was the subject of a preliminary economic assessment early in 2019.

Potential new mine at BAM

The PEA showed that for just under US$95mln the BAM project could be capable of producing 800,000 ounces over the life of the mine at an all-in sustaining cost of US$816 per ounce.

That provides considerable margin and protection against any future gold price weakness, as well as allowing for increased profitability if the gold price strengthens.

The net present value for the larger of the two projects envisaged in the PEA rings in at US$123mln, while the internal rate of return is set at 26.9% post-tax.

Base Metals projects also making good running

Landore is also working up the B4-7 nickel-cobalt-platinum project and the VW nickel-copper project, both also part of the wider 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.

In addition, Landore owns several other earlier stage exploration properties in Canada and the USA.

Chief executive Bill Humphries confident of further upside from BAM project

"We are very pleased with the results of the PEA which clearly demonstrates the robust nature and growth potential of the BAM gold project,” said chief executive Bill Humphries.

“We are confident that, with the conversion of the unclassified mineralisation  into resource, together with infilling and extending the existing deposits, the project has a high probability of being advanced from the base case 515,000 ounces gold to the extended case 800,000 ounces gold, with significant further upside."

Upside derives from highly prospective geological setting

That upside derives from the highly prospective nature of the geology of Junior Lake, including a 31 kilometre strike along what is known as the Junior Lake shear.

Several additional targets have been identified, and the consultants who completed the preliminary economic assessment have recommended further follow up work.




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