Landore Resources widens loss to £3.5m on Junior Lake operations

Landore Resources shares fell 4.5% to 20.2p in late afternoon trading on Wednesday, after the company announced a widened post-tax loss of £3.9 million from £2.5 million in FY 2021.

The mining group reported that operating expenses were in line with its budget and expectations, with financing secured of £3.5 million in February 2021 by the issuance of shares for 30p per share.

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Landore Resources confirmed no debt and commented it was capable of raising additional equity where required to execute its development plans.

The company highlighted several of its ongoing operations at its Junior Lake property, including its BAM gold deposit, in which a total of 353 NQ and HQ diamond drill holes for approximately 69,857 metres had been completed with a discovery rate of 21 ounces of gold for every metre drilled.

“During 2021 all of Landore Resources’ exploration efforts were focussed on the Junior Lake property; drilling to further infill, extend and deepen the BAM Gold resource to 1,496,000 ounces of gold – a considerable increase of 481,000 ounces (47%) from the 2019 Mineral Resources Estimate,” said CEO Bill Humphries.

The firm also mentioned its battery metals deposit, which currently hosts two defined deposits in B4-7 and VW with a combined 55,581 tonnes of Nickel Equivalent Metals and potential for growth. The group is currently reviewing the deposits with the aim of maximising its value for the electric vehicles sector.

Landore Resources said its planned works for 2022 included recommencement of drilling at the BAM gold deposit in July, alongside drilling the highly prospective Felix area along strike and to the west for gold and battery metals.

The company is also scheduled to kick off drilling on the Lamaune gold deposit to advance it to defined resource status.

The mining group added it had plans to commence feasibility studies in HY2 2022 on the BAM gold deposit as the resource passed the one million ounce target.

“On behalf of my fellow directors I wish to thank our shareholders for their continued support together with Landore’s Management and Exploration team for their dedication and perseverance in advancing our highly prospective Junior Lake Property,” said Humphries.

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