Landore Resources Limited Final Results
Press Release
19 June 2019
Landore Resources Limited
Final Results
The Board of Landore Resources Limited is pleased to announce its audited results for the year to 31 December 2018.
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 / Beth McKiernan / Peter Lynch Tel: 01312209771
Cenkos Securities plc
Nominated Adviser and Broker
Chief Executive Officer’s statement
I am pleased to present the 2018 Annual Report for Landore Resources Limited (“Landore Resources” or the “Group”).
During 2018 all of Landore Resources’ exploration efforts were targeted at increasing the Junior Lake, BAM Gold resource towards 1 million ounces of gold together with the completion of an initial Preliminary Economic Assessment. Both targets were achieved on time and within budget.
Financial Results
In the year ended 31 December 2018, the Group incurred a loss, after tax, of: £2,783,480 (2017: £3,296,625).
Operating expenses were in line with our budgets and expectations, financing details are set out below.
In March 2018, the Group raised £3.15 million by the issuance of shares at a price of 1.5p per share.
Following the year end, in May 2019 the Group has raised a further £1 million at a price of 0.7p per share. As a result the Group is funded for its planned operational expenses for at least six months. The Group has no debt and the Directors are grateful for the support of the company’s shareholders. The Directors will continue to evaluate all options to maximise shareholder value, including a possible joint venture agreement.
The Junior Lake Property:
The Junior Lake property, 100 per cent owned by Landore, 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-PGEs Deposit and numerous other highly prospective mineral occurrences.
The Junior Lake property together with the adjacent 90.2% owned Lamaune Lake property extends for 31 kilometres across highly prospective Archean greenstone belt and covers an area of 30,507 hectares.
BAM Gold Deposit: The 2018 summer drill campaign of 12,673 metres of diamond core was concentrated on infilling and extending the existing BAM Gold Deposit, the results of which were subsequently used to complete a revised Mineral Resource Estimate and prepare a Preliminary Economic Assessment (“PEA”) with Technical Report, reported by Landore on 8th January and 20th February 2019 respectively.
Highlights of the Drilling and Resource Update include.
· The new Mineral Resource Estimate (MRE) modelling has significantly increased the BAM Gold resource to: 28,826,000 tonnes (t) at 1.03 grams/tonne (g/t) for 951,000 ounces of gold including 20,198,000t at 1.08g/t for 701,000 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 14,761,000t at 0.93g/t ounces gold for a further 441,000 ounces gold, in the ‘Unclassified’ material category further demonstrating this deposit’s considerable potential.
· Drilling on BAM Gold to date has recorded a success rate of 30.1 ounces gold for every metre drilled with an average discovery cost of US$8.36 per ounce.
· Based on exploration work completed by Landore up to January 2019, there is significant resource potential that clearly indicates follow up district scale exploration is warranted. There is potential for other gold mineralization targets along the 31 km strike length of the Junior Lake Shear.
The continued rapid growth of the BAM Gold Deposit together with the possible future development of the other known gold prospects such as Lamaune plus the likelihood of new discoveries along this highly prospective 31 kilometre long Archean greenstone belt bodes well for the future of the Junior Lake Property hosting a multi-million ounce gold deposit.
Highlights of the PEA include.
· The BAM Project Base case considers the economics of exploiting a resource of 12.7 Mt at 1.26 g/t Au containing 515,000 ounces gold (koz Au). An Extended (or upside) case considers a 19.7 Mt resource also at 1.26 g/t Au containing 800 koz.
· At US$1,300/ounce the Base case generates a post-tax net present value (“NPV”) of US$69.2M with an internal rates of return “(IRR”) of 22.4%. The Extended case generates a post-tax NPV5 of US$123.7M and post-tax real IRR of 26.9%.
· The Base case has an all-in-sustaining cost (“AISC”) of US$ 806/oz with the Extended case being slightly higher at US$ 816/oz. Initial CAPEX is US$73.53M for Plant and infrastructure plus US$ 20.28M for pre-production including mining and G+A
The Preliminary Economic Assessment has demonstrated the economic viability of this project as well as its high growth potential, and has reinforced Landore’s opinion that in the initial stage the BAM Gold Project can be developed as a low-cost open pit mining operation
Further details are set out in the Operations Report.
IBF4
