Landore Resources Limited - Updated Mineral Resource Estimate B4-7 Nickel-Copper-Cobalt-Platinum-Palladium Deposit Junior Lake Property

(AIM Ticker: LND.L)

LONDON, Feb. 5, 2018 /CNW/ - Landore Resources Ltd. (AIM:LND) ("Landore Resources" or "the Company") is pleased to announce the Updated Mineral Resource estimate for the B4-7 Nickel-Copper-Cobalt-Platinum-Palladium Deposit on its Junior Lake Property, Ontario, Canada ("B4-7 Deposit").

Highlights:

• Additional drilling at the B4-7 Nickel-Copper-Cobalt-PGE's Deposit since the completion of the 2012 Mineral Resource estimate has increased the total resource by 43% to 3,292,000 tonnes at 1.20% Nickel equivalent (NiEq) in the Indicated category and 568,000 tonnes at 1.26% NiEq in the Inferred category for a total of 46,661 tonnes of contained metal.
• The open pit component of the B4-7 Deposit has successfully been doubled to 1,772,000 tonnes at 1.20% NiEq in the Indicated category for 21,264 tonnes of contained metal.
• Drilling has extended the B4-7 Deposit an additional 200 metres to a strike length of 900 metres and a depth of 550 metres, and remains open along strike and at depth.
• A new Exploration Target has been identified down dip from the above resource which may contain a potential 1.5 Mt to 2.0 Mt of sulphide mineralisation of similar grade range to that which has been outlined to-date (potential 18,000 to 24,000 tonnes of contained metal).

Commenting on this report, the Chairman of Landore Resources, Bill Humphries, said:

We are very pleased with the significant increase in the B4-7 Deposit resource and its potential for continued growth. The burgeoning world prices of all of the B4-7 Deposit's contained metals, Nickel-Copper-Cobalt-Platinum-Palladium and Gold, together with the Deposit's proximity to the BAM East Gold Deposit with obvious development synergies, has further highlighted the prospectivity of the Junior Lake Property.  

At this stage, Landore's primary objective remains to advance the BAM East Gold Deposit to the next level of study and continue exploration for gold in the Project area.

From late 2012 until the discovery of the BAM East Gold Deposit in December 2015, all of Landore Resources' exploration efforts were targeted at advancing the Junior Lake Nickel deposits towards pre-feasibility studies and eventual production.

During that time Landore Resources completed a further 23,300 metres of diamond core drilling on the property, 16,910 metres predominantly on the B4-7 Deposit aimed at extending mineralisation down plunge and along strike to the east and west. The drilling was highly successful expanding the B4-7 resource by 43% to a medium size nickel sulphide deposit with significant valuable credits including cobalt and palladium.

In addition, several studies were completed including down-hole geophysical surveys to search for continuation of the mineralisation at depth, geotechnical studies for the B4-7 open pit optimisation and compilation of the extensive geophysics studies completed on the Junior Lake property aimed at identifying further polymetallic occurrences.

Since the discovery of the BAM East Gold Deposit all of Landore Resources' exploration efforts have been concentrated on the further delineation and expansion of this highly prospective gold deposit.

The updated BAM East Gold resource to 400,000 ounces of gold at 1.37 grams per tonne was reported in a press statement dated 11 December 2017.    

Extracts from the Executive Summary of the Updated Mineral Resource Estimates for the Junior Lake property.

"EXECUTIVE SUMMARY

Roscoe Postle Associates Inc. (RPA) was retained by Landore Resources Canada Inc. (Landore) to update the Mineral Resource estimates for the BAM East Gold Deposit, the B4-7 Nickel-Copper-Cobalt-Platinum-Group Element (PGE) Deposit (B4-7 Deposit) and associated Alpha Zone PGE Deposit, and the VW Nickel Deposit (VW Deposit), all located on Landore's Junior Lake Project (the Project), and to prepare a supporting Technical Report to disclose the results."  "This Technical Report is compliant with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).  RPA has visited the Project multiple times, most recently from August 8 to 10, 2016."

"The updated Mineral Resource estimates for the B4-7 Deposit and Alpha Zone are presented in Table 1-2. 

"Landore is a fully-owned subsidiary of Landore Resources Ltd., which is based in Guernsey, UK, and listed on the AIM market of the London Stock Exchange.  The BAM East Gold Deposit, the B4-7 Deposit and Alpha Zone, and the VW Deposit are located within Landore's Junior Lake Project, located approximately 235 km north-northeast of Thunder Bay, Ontario, and approximately 75 km east-northeast of the village of Armstrong Ontario, Canada.  Landore released the initial Mineral Resource estimate for the BAM East Gold Deposit in February 2017.  The most recent Mineral Resource estimates for the B4-7 and VW Deposits were released by Landore in 2013 and 2010, respectively.

In addition to the BAM East Gold Deposit, the B4-7 Deposit and Alpha Zone, and the VW Deposit, the Junior Lake Project also includes the Lamaune Iron claim group, hosting the Lamaune Gold Prospect.  The Lamaune Gold Prospect is located in the western portions of the Junior Lake Project and has been outlined by drilling campaigns carried out in 2009 and 2010.  No Mineral Resources have been estimated for this prospect. 

Currently, Landore's primary objective is to advance the BAM East Gold Deposit to the next level of study and continue exploration for gold in the Project area."

"B4-7 Nickel-Copper-Cobalt-PGE Deposit and Alpha Zone

The B4-7 Deposit and Alpha Zone are located in the south-central portion of the Junior Lake Project and are examples of magmatic-hosted, polymetallic nickel-copper-cobalt-platinum-palladium-gold mineralization.  Landore has conducted a number of drilling campaigns at the B4-7 Deposit and Alpha Zone from 2001 through to 2015.  These drilling campaigns have been successful in outlining the B4-7 Deposit and Alpha Zone along a strike length of approximately 900 m and to a depth of approximately 550 m from surface.  The down-plunge limits of the B4-7 deposit have not been defined by drilling.

The previous Mineral Resource estimate for the B4-7 Deposit was prepared with an effective date of February 20, 2013 and was disclosed in a Technical Report dated March 26, 2013."

"RPA prepared updated Mineral Resource estimates for the B4-7 Deposit and Alpha Zone that incorporated the results from additional drilling that had taken place in 2013, 2014, and 2015.  These drilling programs were successful in intersecting additional nickel-copper-PGE mineralization along the down-plunge extension of the B4-7 Deposit, as well as encountering additional Alpha Zone style mineralization.

The 2017 updated Mineral Resource estimates for the B4-7 Deposit and Alpha Zone incorporate updated metal prices and exchange rate as well as additional geotechnical and engineering parameters that have been developed since the preparation of the 2012 and 2013 Mineral Resource estimates.  Due to the polymetallic nature of the mineralization, RPA adopted the Net Smelter Return (NSR) method for preparation of the updated Mineral Resource estimates.  Given the location and orientation of this mineralization, RPA agrees with Landore's view that the upper portions of the B4-7 Deposit and Alpha Zone could potentially be exploited by means of open pit mining methods, with the remainder of the deeper portions of the B4-7 Deposit being potentially exploited by means of underground mining methods.  Consequently, RPA prepared two separate estimates at an NSR cut-off grade of $22/t for the potential open pit mineralization and $62/t for the potential underground mineralization." 

"B4-7 Deposit and Alpha Zone

The previous Mineral Resource estimate for the B4-7 Deposit was prepared with an effective date of November 19, 2012 and was disclosed in a Technical Report with an effective date of March 26, 2013.  The previous estimate of the Mineral Resources for the Alpha Zone was prepared with an effective date of May 3, 2013, however, this estimate was not disclosed in a Technical Report.

Additional drilling at the B4-7 Deposit carried out by Landore since the completion of the November 19, 2012 Mineral Resource estimate has been successful in outlining additional sulphide mineralization along the down-plunge projection by approximately 200 m."  

"This drilling has also been successful in encountering additional intersections of Alpha Zone-style of mineralization. The Alpha Zone is located approximately 100 m to the north in what is interpreted as the stratigraphic hanging wall of the B4-7 Deposit. The Alpha Zone has been outlined by drilling along a strike length of approximately 750 m and from surface to a vertical depth of approximately 450 m.

RPA prepared updated Mineral Resource estimates for the B4-7 Deposit and Alpha Zone that incorporated the results from additional drilling that had taken place in 2013, 2014, and 2015.  These drilling programs were successful in intersecting additional nickel-copper-PGE mineralization along the down-plunge extension of the B4-7 Deposit, as well as encountering additional Alpha Zone style mineralization.

The B4-7 Deposit and Alpha Zone are considered to be examples of magmatic-hosted nickel-copper mineralization.  The mineralization at the B4-7 Deposit is composed of massive, semi-massive, and disseminated pyrrhotite containing nickel-copper-cobalt-PGE values.  While some instances of massive sulphides have been observed at the Alpha Zone, the mineralization is composed mostly of disseminated and net-textured pyrrhotite.  Both zones are hosted by the Grassy Pond Sill, which is largely of gabbroic composition.

The B4-7 Deposit and Alpha Zone are generally sub-parallel to each other and strike generally in an east-west direction.  Both deposits have vertical dips overall, with local sections having either steep north or steep south dips.  Due to the disseminated nature of the mineralization, the grades within the Alpha Zone are less continuous and generally thinner as compared to the B4-7 Deposit.  The average horizontal thickness of the open pit portion of the B4-7 Deposit Mineral Resource is approximately 6.4 m.  The average horizontal thickness of the underground portion is 4.4 m.

As the envisioned extraction scenario for the B4-7 Deposit and Alpha Zone includes both open pit and underground mines, two sets of mineralization wireframes were constructed that reflect the two separate cut-off grades that are used for each mining method.  The open pit mineralization wireframe was constructed using an NSR cut-off grade of $22, while the underground mineralization wireframes were constructed using an NSR cut-off grade of $62.

Trend analyses for the B4-7 Deposit shows that, while the grades of the individual metals can vary greatly at a local scale, the deposit as a whole exhibits a moderate westerly plunge of approximately 45°.  The down-plunge limits of the B4-7 Deposit have not been defined by drilling.  Trend analyses for the Alpha Zone shows that the individual metal grades show little preferred orientation and occur largely as pods and pockets of higher grade mineralization.

A preliminary Whittle open pit shell was developed at a $22/t NSR cut-off grade as a constraint when reporting the open pit Mineral Resources.  Underground Mineral Resources comprise all of the material within the $62/t NSR wireframe that lies below the bottom of the preliminary open pit shell.

Indicated Mineral Resources potentially mineable by open pit methods total 1.78 Mt tonnes at an average grade 0.59% Ni, 0.39% Cu, 0.05% Co, 0.14 g/t Pt, 0.58 g/t Pd, and 0.03 g/t Au at an NSR cut-off value of $22/t.  Indicated Mineral Resources potentially mineable by underground methods total 1.52 Mt at an average grade 0.65% Ni, 0.45% Cu, 0.06% Co, 0.12 g/t Pt, 0.48 g/t Pd, and 0.03 g/t Au at an NSR cut-off value of $62/t.  The total combined Indicated Mineral Resources are estimated at 3.29 Mt at an average grade of 0.62% Ni, 0.42% Cu, 0.05% Co, 0.13 g/t Pt, 0.53 g/t Pd, and 0.03 g/t Au.  Indicated Mineral Resources potentially mineable by open pit methods include portions of both the B4-7 Deposit and the Alpha Zone while the Indicated Mineral Resources potentially mineable by underground methods are comprised of the B4-7 Deposit only.

Inferred Mineral Resources at an NSR cut-off value of $62/t total 0.57 Mt at an average grade 0.61% Ni, 0.52% Cu, 0.05% Co, 0.08 g/t Pt, 0.50 g/t Pd, and 0.03 g/t Au from the underground portion of the B4-7 Deposit.  No Inferred Mineral Resources are present within the open pit shell.

VW Nickel Deposit

The VW deposit is a low-grade, nickel-copper-cobalt ± PGE ± gold-bearing, disseminated to veined sulphide deposit dominated by pyrrhotite, potentially of epigenetic, hydrothermal origin.  Landore discovered the deposit by drilling an electromagnetic and magnetometer anomaly in 2005. 

The VW Deposit has been tested by 169 drill holes totalling 41,650 m, and 22 diamond drill holes totalling 4,993 m in length were completed on or in the vicinity of the VW Deposit subsequent to the previous estimate.  RPA estimated Mineral Resources for the VW Deposit using the drill hole information available as of October 8, 2014.  Most drilling was completed prior to 2010.  Between 2010 and 2014, Landore completed six holes totalling 1,187 m along strike directly to the east and west of the VW Deposit, which did not intersect significant mineralization.  The current Mineral Resource estimate is based on the information from 114 drill holes totalling 29,992 m in length.  The strike and depth extents and the interpretation of the VW Deposit mineralization wireframes have remained unchanged. 

The VW Mineral Resource estimate was carried out for nickel, copper, and cobalt.  PGE and gold were not included in the current estimate because assay values were very low and not likely to reach payable amounts in concentrate. 

The VW Mineral Resource estimate is based on a potential combined open pit and underground mining scenario.  Preliminary pit design by Whittle software was undertaken to estimate open pit resources at a discard NSR cut-off value of $22/t.  Underground resources were reported within preliminary mining stope shapes based on an NSR cut-off value of $62/t. 

The updated Mineral Resource estimates for the VW Deposit are presented in Table 1-3.

"RPA classified the VW Deposit Mineral Resource as Indicated and Inferred based on adequacy of drill hole density (distance to and spatial availability of composites), continuity of mineralization, and geometry of the wireframe domains.  The VW Deposit is open at depth along portions of the zone, particularly to the west, however, the potential to extend the continuity of the current Mineral Resource along strike is limited given the results of drilling between 2010 and 2014.

RPA estimates Indicated Mineral Resource to total 1.1 Mt at an average grade of 0.63% Ni, 0.07% Cu, and 0.02% Co.  Indicated Mineral Resources include 0.16 Mt of resources at an average grade of 0.43% Ni, 0.05% Cu, and 0.02% Co potentially mineable by open pit methods, and 0.92 Mt of resources at an average grade of 0.67% Ni, 0.07% Cu, and 0.02% Co potentially mineable by underground methods.  In addition, Inferred Mineral Resources are estimated to total 0.2 Mt at an average grade of 0.60% Ni, 0.07% Cu, and 0.02% Co, including 0.07 Mt of resources at an average grade of 0.45% Ni, 0.06% Cu, and 0.02% Co potentially mineable by open pit methods, and 0.11 Mt of resources at an average grade of 0.69% Ni, 0.07% Cu, and 0.02% Co potentially mineable by underground methods."

 "Ni-Cu-PGE Exploration Potential

RPA is of the opinion that there is good exploration potential to discover more Ni-Cu-PGE mineralization on the property.  RPA concurs, however, with Landore's current focus on gold.

B4-7 Deposit

Based upon its detailed review of the drill hole information, RPA concludes that good potential remains along the down-plunge direction of the B4-7 Deposit.  In establishing its estimate of the exploration target, RPA considered the spatial configuration and trends of the grade distribution of the known mineralization, the location of those drill holes that form the limits of the B4-7 Deposit, the average thickness of that portion of the $62/t NSR mineralized wireframe that lies below the preliminary open pit shell, and the average densities of the available samples in this portion of the $62/t NSR wireframe model.  Based upon these criteria, RPA is of the opinion that additional drilling along the down-plunge extensions of the B4-7 Deposit has the potential to outline an additional 1.5 Mt to 2.0 Mt of sulphide mineralization of similar grades to that which has been outlined to date.  It is important to note that the potential quantity and grade is conceptual in nature, that insufficient exploration has been carried out in this area to define a Mineral Resource and that it is uncertain if further exploration will result in the target being delineated as a Mineral Resource.

Further detailed review of the drill hole information at shallow depths along the western strike projection of the $22/t NSR wireframe outline of the B4-7 Deposit leads RPA to observe that the limits of the mineralization in this area is poorly defined by the existing drill holes.  RPA is of the opinion that potential exists to outline additional sulphide mineralization at shallow depths for a 150 m to 200 m long segment to the west of Section Line 0+00E.  RPA observes that any such mineralization located in this area would have the potential of extending the western limit of the current preliminary open pit shell.

B4-8 Conductor

As part of its scope of work for the Project, RPA has carried out preliminary compilations of available drilling, mapping, and geophysical information along an approximately ten kilometre strike length of the Grassy Pond sill.  Examination of the compiled information in the immediate area of the B4-7 Deposit and Alpha Zone shows that, while the known mineralization for the B4-7 Deposit correlates very well with the B4-7 Horizontal Loop conductor, a second conductor is located to the south and west.  This conductor is known as the B4-8 conductor and has been intersected by drill holes at depth.  These drill holes have shown this conductor to be caused by narrow zones of massive sulphide mineralization.  RPA notes that the shallow portions of the B4-8 conductor have not been adequately tested by drilling and believes that potential exists to locate additional sulphide mineralization at shallow levels that could potentially be exploited by means of open pit mining methods.

Scorpion Zone

Based upon its detailed examination of the drill hole information and modelling of the mineralization located at the Scorpion Zone, RPA notes that while the known mineralization in this area has not been of sufficient grade or continuity to be classified as a Mineral Resource, the immediate east and west strike extensions of this zone have not been defined by drilling.  RPA is of the opinion that these two areas have the potential of hosting additional Alpha Zone style of mineralization that could be exploited by means of open pit mining methods.

RECOMMENDATIONS

Landore's current focus is to advance the BAM East Gold Deposit to the next decision stage and continue exploration for gold in the Project area.  Overall, RPA is of the opinion that there is excellent exploration potential to expand the limits of the BAM East Gold Deposit and to discover zones of additional gold mineralization along the Junior Lake Shear Zone."

End of extract:

The B4-7 Nickel-Copper-Cobalt-Platinum-Palladium Deposit Resource Estimate will be included in a NI 43-101 compliant Technical Report, anticipated to be released in Q1 2018, together with updated Mineral Resource Estimates for The BAM East Gold Deposit and the VW Nickel-Copper-Cobalt Deposit. Updates on previously-reported Mineral Resource Estimates on the Junior Lake Property are a requirement for the Company's application for a potential listing on the Toronto Stock Exchange.

The Directors believe there are positive synergies between the aforementioned deposits as they are located within three kilometres of each other and potentially can be developed either together or in sequence with the possibility of sharing infrastructure, machinery, plant etc. All three deposits are intended to commence as open pit operations in which material can be extracted by low cost, bulk mining method improving the overall economics of the project.

The Junior Lake Property:

The Junior Lake Property, 100% owned by Landore Resources, together with the contiguous Lamaune Iron property (90.2% owned) (jointly the "Junior Lake Property"), consisting of 26,593 hectares,  is located in the province of Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay.

A highly prospective Archean greenstone belt traverses the Junior Lake Property from east to west for approximately 31 kilometres. The greenstone belt ranges from 0.5 to 1.5 kilometres wide and contains all of Landore Resources' stated mineral resources and prospects. However, the greater proportion of this belt remains unexplored.

Michele Tuomi, (P.Geo., BSc. Geology), Director/VP Exploration of Landore Resources Canada Inc. and a Qualified Person as defined in the Canadian National Instrument 43-101 and the AIM Rules for Companies, has reviewed and verified all scientific or technical mining disclosure contained in this announcement.

Reno Pressacco, (P.Geo.), Principal Geologist of RPA Inc. Toronto, Canada, a Qualified Person as defined in NI 43-101, and responsible for the preparation of the B4-7 Nickel-Copper-Cobalt-Platinum-Group Element (PGE) Deposit and associated Alpha Zone PGE Deposit, Resource Estimate, has reviewed and verified all scientific or technical disclosure relating to the Mineral Resource estimate and exploration potential.

About Landore Resources
Landore Resources is an exploration company that seeks to grow shareholder value through the acquisition, exploration and development of precious and base metal projects in eastern Canada. The Company is primarily focused on the development of the Junior Lake Project. Landore Resources has mineral rights to 5 properties in eastern Canada. The Company is headquartered in Guernsey, with an exploration office located in Thunder Bay, Ontario, Canada.

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No 596/2014.

SOURCE Landore Resources Ltd.