Landore Resources Ltd (LON:LND) have said that an updated mineral resource estimate has increased the gold resources at the BAM deposit.
Landore Canada is engaged in mineral exploration and development, with the present focus of its operations being mineral exploration on the Junior Lake property, located in the province of Ontario.
Landore’s objective is to become a successful mineral explorer and create capital growth for shareholders through the discovery of economic mineral deposits.
The updated estimate was provided by Cube Consulting, and confined that the resources increased at the deposit in Ontario to 31.1 million tonnes at 1.02 grammes per tonne for 1.0 million ounces of gold. This includes 21.9 million tonnes at 1.06 grammes per tonne for 747,000 ounces of gold.
Similar work carried out by Cube Consulting further extended the deposit by 3,700 meters with a recently completed soil programme by Landore identifying “widespread” gold mineralisation along strike to the west for a further 7 kilometres.
The firm said that the February 2019 Preliminary Economic Assessment (PEA) for the BAM Gold project provided a price sensitivity analysis of the ‘Extended case’ which, at a gold price of US$1,300, would produce a Post Tax, Net Present value (NPV) of US$123.71m.
At the current gold price of US$1,560 that Post tax NPV would be elevated to $227.37m, as mentioned in the Tuesday update,
The BAM gold deposit is located approximately mid-way along a highly protective Archean greenstone belt which traverses the Junior Lake Property from east to west for approximately 31 kilometres.
Chief Executive Officer of Landore Resources, Bill Humphries, said:
“Landore’s exploration effort for 2019 concentrated on establishing the potential growth of the BAM Gold Project along strike towards the existing Lamaune Gold project through the highly successful Soil Sampling campaign together with exploration drilling. Whilst the above infill drilling campaign continued to convert Inferred mineralisation into Indicated resource ounces.”
“The directors believe that the continued growth of the BAM Gold Deposit together with the possible future development of new discoveries along this highly prospective 31 kilometre long Archean greenstone belt has further enhanced the likelihood of the Junior Lake Property hosting a multi-million ounce gold deposit.”
Shares of Landore trade at 0.65p (-3.67%). 7/1/20 13:32BST.