Landore Resources Limited – Technical Report and Preliminary Economic Assesment of the Bam Gold Project Junior Lake Property
Press Release
London, United Kingdom 20th February 2019 – Landore Resources Limited (AIM:LND) (“Landore Resources” or “the Company”) is pleased to provide the Technical Report and Preliminary Economic Assessment of the BAM Gold Project, Junior Lake Property, Ontario, Canada (“BAM Gold Project”).
Cube Consulting Pty Ltd (“Cube”) was engaged by Landore Resources Canada Inc. (“Landore”) to conduct a preliminary economic assessment (“PEA”) and prepare an Independent Technical Report, in compliance with the requirements of the Canadian National Instruments 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), on the BAM Gold Project, in Ontario, Canada.
Highlights:
· The Mineral Resource Estimate of the BAM Gold Project at a 0.3g/t cutoff is:
28,826,000 tonnes (t) at 1.03 grams/tonne (g/t) for 951,000 ounces of gold (ozAu) including 20,198,000t at 1.08g/t for 701,000 ounces gold in the Indicated Category.
· 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.
· 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.
· Based on exploration work completed by Landore up to January 2019, there is significant resource potential that clearly indicates follow up district scale exploration programs are warranted. There is potential for other gold mineralization targets along the 31 km strike length of the Junior Lake Shear.
Commenting on this report, Chief Executive Officer of Landore Resources, Bill Humphries, said:
“We are very pleased with the results of the PEA which clearly demonstrates the robust nature and growth potential of the BAM Gold Project.
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.”
The full Technical Report and Preliminary Economic Assessment can be found on Landore’s web site www.landore.com
“Executive Summary
Cube Consulting Pty Ltd (“Cube”) was engaged by Landore Resources Canada Inc. (“Landore”) to conduct a preliminary economic assessment (“PEA”) and prepare an Independent Technical Report, in compliance with the requirements of the Canadian National Instruments 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), on the BAM Gold Project, in Ontario, Canada.
The BAM Gold Project Mineral Resource, Effective Date as at 7th January 2019 is suitable for public reporting in accordance with the NI 43-101 and the CIM Definition Standards (May 2014). All drilling information, including drilling completed up to the end of 2018 has been used in the preparation of the current MRE.
Table 1-1 is a summary of the Indicated and Inferred Mineral Resources, effective as of 7th January 2019.
Table 1‑1 BAM Gold Project – Indicated and Inferred Mineral Resource (January 2019)
|
Resource Category |
Material Type |
Cut-Off (Au g/t) |
Tonnes (kt) |
Grade (g/t Au) |
Contained Metal (Oz Au) |
|
Measured |
ALL |
>0.3 |
0 |
0 |
0 |
|
Indicated |
ALL |
>0.3 |
20,198 |
1.08 |
701,000 |
|
Inferred |
ALL |
>0.3 |
8,628 |
0.90 |
250,000 |
|
Notes: |
|
|
1 |
Effective date of 7th January 2019. |
|
2 |
Mineral Resources are estimated at a block cut-off grade of 0.3 g/t Au. |
|
3 |
Mineral Resources are estimated using a long-term gold price of US$1,250 per ounce, and an exchange rate (US$/C$) of 1.36. |
|
4 |
A minimum mining width of two metres was used. |
|
5 |
Bulk densities for the main host rocks are 2.82 t/m3, 2.84 t/m3, and 2.90 t/m3. |
|
6 |
Mineral Resources are constrained by a preliminary pit shell generated in Whittle software. |
|
7 |
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. |
|
8 |
Figures may not add up due to rounding |
Based on the current input parameters that have been used for the January 2019 pit optimization by Cube, a 0.3g/t Au cut-off was deemed appropriate for the January 2019 Mineral Resource reporting.
At a cut-off grade of 0.3 g/t Au, the Mineral Resources are reported here within the pit optimization run B open pit shell. The Run B open pit shell include Indicated Mineral Resources and Inferred Mineral Resources. The figures reported in Table 2-2 are estimated using a long-term gold price of US$1,250 per ounce.
Table 2‑2 2017 BAM Gold Project – In-Pit Resources (January 2019 Run B Pit Design (January 2019)
|
Resource Category |
Material Type |
Au g/t cut off |
Tonnes (kt) |
Grade (g/t Au) |
Contained Metal (Oz Au) |
|
Measured |
ALL |
>0.3 |
0 |
0 |
0 |
|
Indicated |
ALL |
>0.3 |
12,347 |
1.21 |
480,000 |
|
Inferred |
ALL |
>0.3 |
1,186 |
1.07 |
41,000 |
|
Notes: |
|
|
1 |
Effective date of 7th January 2019. |
|
2 |
Mineral Resources are estimated at a block cut-off grade of 0.3 g/t Au. |
|
3 |
Mineral Resources are estimated using a long-term gold price of US$1,250 per ounce, and an exchange rate (US$/C$) of 1.36. |
|
4 |
A minimum mining width of two metres was used. |
|
5 |
Bulk densities for the main host rocks are 2.82 t/m3, 2.84 t/m3, and 2.90 t/m3. |
|
6 |
Mineral Resources are constrained by a preliminary pit shell generated in Whittle software. |
|
7 |
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. |
|
8 |
Figures may not add up due to rounding |
The pit optimization study resulted in two distinct areas, an east pit design (BAM East Pit) and a west pit design (BAM West Pit) which were individually designed (Figure 1-1). The pit designs are summarised as follows:
· BAM West Pit Design: The base of the pit is at the 145 mRL, with a final backloaded cut going down to the 135 mRL. The ramp is 12 m from 145 mRL up to the 210 mRL. From the 210 mRL to the surface the ramp is 25 m wide. The batter angle is 80° with an 8.5 m berm every vertical 20 m.
· BAM East Pit Design – The base of the pit is at the 200 mRL, with a final backloaded cut going down to the 190 mRL. The ramp is 12 m from 200 mRL up to the 260 mRL. From the 260 mRL to the surface the ramp is 25 m wide. The batter angle is 80° with an 8.5 m berm every vertical 20 m.
The results of the pit optimization study and pit design work can be seen in Table 16-11 in the Report. The comparison confirms the efficiency of the design as well as the alignment of the pit optimization slope inputs with the final design outcome.
IBF5
