Drilling on the eastern section of B4-7 has consistently intersected massive sulphide mineralisation, it said.

The best result highlights include 23.97 metres with grades of 0.80 per cent nickel, 0.57 per cent copper, 0.07 per cent cobalt, 737 parts per billion palladium, and 124 parts per billion platinum.

The programme has also shown continuity on the adjacent ‘alpha zone’. The highlight results here include an intersection with 3 metres grading 2,134 parts per billion palladium, 171 parts per billion platinum and 0.29 per cent nickel.

“The results of the current drilling campaign on the B4-7 deposit are highly encouraging having significantly increased the potential tonnage amenable to open pit development,” Landore said.

The company said it will use the new drilling results to produce an updated resource estimate for B4-7, and this is expected in the third quarter of this year.

After that it will begin a pre-feasibility study on the combined B4-7 and the VW deposits during the fourth quarter of the year.

B4-7 and VW are two parts of the Junior Lake property. These two projects have a current resource of 48,281 tonnes of nickel equivalent. The bulk of that is estimated in the indicated resource category. 

Both deposits are still open down dip and along strike.

Landore believes the resource will become economically viable once it is increased by around 20-30 percent. And achieving that is the group’s primary focus.

The group has agreed a subscription of 30.1 million new shares at 7.5p per subscription share.

The focus for the drilling will be to expand and upgrade the nickel resources at the B4-7 and VW deposits at Junior Lake project, which is in the Province of Ontario, Canada.

At the end of last year, Landore said its plan was to bring the Junior Lake nickel and copper resources up, so it can move the project into the mine development phase.

“We’ve always said that if we can increase our deposit from 50,000 to 75,000 tonnes then we’ve got a very economic nickel-copper mine,” said chief executive Richard Prickett then.

The new subscription shares will account for 10.2% of the enlarged issued share capital.

Chairman Bill Humphries is taking up 3.35 million shares to take his stake to 8.07 per cent, while Richard Prickett has taken up 707,335 subscription shares to take his stake to 2.2 per cent.

Landore (LON:LND) is focussing its exploration efforts on the discovery of new areas of nickel, copper, and cobalt mineralization in the vicinity of the two main deposits of the Junior Lake project, in Ontario, Canada.

According to Landore it needs to find enough mineralisation to increase Junior lake’s current resource of 48,281 tonnes nickel equivalent by 20-30 per cent, in order for the economically viable.

In this morning’s interim results statement, for the six months ended June 30, Landore highlighted the exploration work that’s been carried out recently.

In the first quarter it completed a scout drilling campaign on the eastern end of the B4-8 zone (one of the two main deposits). The programme successfully intersected massive sulphide mineralisation which is similar to B4-7. Drill results included 5.58 metres with 0.59 per cent nickel, 0.29 per cent copper and 0.07 per cent cobalt.

More recently a 25 hole follow up campaign has just been completed. Through this programme Landore completed ‘fences’ of 3-5 drill-holes with 'fences' of 3-5 drill-holes completed in the centre, and on the western end, of the 900 metre long B4-8 zone.

Landore highlighted that the two main deposits, VW Nickel and the B4-7 deposit, both remain open down dip and along strike to the east and west.

“Results from the drilling on the B4-8 are highly encouraging, successfully identifying a potential new area of mineralization on the Junior Lake property. Drilling will recommence in early September 2011 focusing on the western end of the B4-8,” Landore said.

During the reporting period Landore also demerged its non-core Lamaune iron are assets. These assets have been transferred into a new, currently un-listed, company called Lamaune Iron Inc.

Landore said that the assets have significant value potential and the new company has a long term intention to become a listed company.

The Lamaune assets comprise of 23 staked claims, covering 4,096 hectares in one contiguous block. The area is highly prospective for numerous metals including; iron ore, nickel, copper, PGE's, gold and lithium. The major asset within this block is the Despard-Zmudzinski deposit.

Lamaune Iron Inc is funded by a C$6.2 million secured loan note. The loan has an 18 month term and it has an interest rate of 3 per cent each year. It also has a separate short-term loan facility of C$100,000.

In terms of financials Landore reported a £1.9 million loss, which it said was in line with expectations. Exploration costs accounted for £1.3 million and admin costs were £569,490. Meanwhile it raised £3.3 million in new capital during the period through a share placing and a further £450,000 has been raised since June 30 as well.

Landore told investors that it is now fully funded for this season's exploration and drilling activities.