Follow Us! Like Our Page!

Landore ResourcesPEA and Strategic Review, Junior Lake

Press Release

London, United Kingdom 9th May 2022 – Landore Resources Limited (AIM:LND) (“Landore Resources” or “the Company”) is pleased to confirm that, further to the Company’s announcement on 8th February regarding a Mineral Resource Estimate update, Cube Consulting Pty Ltd has now completed a Technical Report and Preliminary Economic Assessment (“PEA”) on the BAM Gold Project, Junior Lake Property, Ontario, Canada (“BAM Gold Project”).

In addition, Landore Resources confirms that it has commenced a review of the strategic options available to the Company in relation to its Canadian subsidiary/assets (the “Strategic Review”).

Technical Report and PEA Highlights:

  • The Mineral Resource Estimate of the BAM Gold Project at a 0.3g/t cut‐off is: 49,231,000 tonnes (t) at 1.0 grams/tonne (g/t) for 1,496,000 ounces of gold (oz Au) including 30,965,000t at 1.0g/t for 1,029,000 ounces gold in the Indicated Category.
  • The PEA considers the economics of exploiting resources inside optimised pit shells of 22.4 Mt at 1.16g/t Au containing 833,000 ounces gold using a long term gold price of US$1,800. The project assumes the construction of a 2.2 Mt per annum processing plant over 4 quarters followed by a production period of 10.5 years.
  • The PEA indicates that the BAM Gold Project generates a pre‐tax and post‐tax NPVS of, respectively, US$333.6M and US$231.2M and pre‐tax and post‐tax real IRRs of 87.4% and 66.7%. The BAM Gold Project has an after‐tax simple pay back of 1.25 years from the start of production or 2.25 years from the start of project.

Strategic Review:

  • In light of the significance of the BAM Gold and Battery Metals deposits located on the Junior Lake property, as announced in the Company’s Mineral Resource Estimate (MRE) update released on 8th February 2022, the Directors will now review the strategic options available to the Company in relation to the Company’s Canadian subsidiary/assets. The options under the Strategic Review will consider options including the sale of all or a part of its wholly owned subsidiary, Landore Resources Canada Inc., or the Junior Lake Project, potential joint venture arrangements or strategic partnerships, or a combination thereof.
  • The Board believes the Strategic Review process is appropriate at this stage of the Company’s development to help the Board achieve its objective in maximizing shareholder value. The BAM MRE has now reached 1.5 million ounces of gold and the Board believes that it has the clear potential to become a multi‐million ounce gold project. Whilst the above process is undertaken, the Company will continue to seek to advance the BAM Gold Project towards future development, with further drilling planned to commence in July 2022..
  • Strand Hanson Limited (“Strand Hanson”) has been appointed as Financial Advisor in connection with the Strategic Review. Any parties interested in submitting an indication of interest should contact Strand Hanson via the contact details shown below.

Commenting on this report, Chief Executive Officer of Landore Resources, Bill Humphries, said:

“This Preliminary Economic Assessment, combined with the 50% resource increase reported in February 2022, reaffirms the profitability of the BAM Gold Project. The resource has excellent growth potential remaining open at depth and along strike to the east and west, all within established mining leases which cover more than 20 kilometres potential strike length. Other exploration works completed by Landore including exploratory drilling, trenching and soil surveys have identified anomalous gold over this area and the incredible potential for future resource growth.

Over half of the gold resources delineated to date are extractable by cost‐effective open pit mining. This coupled with the 98% recovery achieved by conventional milling demonstrates the BAM Gold Deposit’s potential for low capex costs and economical mining operation. Other advantages include the project’s road accessibility and proximity to national rail thus ensuring secure market access.

It is the Company’s belief that the highly prospective Junior Lake Property has the potential to host multi‐million ounce gold resources and is now exploring various strategic options to ensure the development of this rapidly‐growing asset to the benefit of shareholders.”

Technical Report:

The full Technical Report and Preliminary Economic Assessment can be found on Landore’s web site

Extracts from CUBE Technical Report and Preliminary Economic Assessment May 2022:

Executive Summary

Cube Consulting Pty Ltd (Cube) was engaged by Landore Resources Canada Inc. (Landore) to complete a Mineral Resource estimate (MRE) and conduct a preliminary economic assessment (PEA) for the BAM Gold Project, in compliance with the requirements of the Canadian National Instruments 43‐101 Standards of Disclosure for Mineral Projects (NI 43‐101).

Read More:


 154 total views,  2 views today

NationTalk Partners & Sponsors Learn More