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.

Canada-focused Landore Resources (LON:LND) said it had made excellent progress on its Junior Lake iron and nickel projects in 2010 and needs to raise funds to carry out development plans.

In line with expectations, for the year to 31 December 2010, the firm made a loss of £3,773,758 compared to £3,801,114.

Exploration expenditure in the period was £2,653,910 (2009: £2,697,943), revealed the company today, which said these costs had been largely funded by placings, which had raised £3.84mln.

"The group has no debt but will need to raise further equity to carry out its development programme," said chairman William Humphries.

Landore is a holding company for its 100 percent owned reporting subsidiary Landore Resources Canada Inc, which is focused on mineral exploration in Ontario, Quebec and New Brunswick, Canada.

Its main properties are the Junior Lake and the Miminiska Lake Property - in the Thunder Bay mining district in Ontario. Landore is also the owner of other properties in Canada and Nevada in the US containing gold and base metal drill intersections.

Junior Lake is 100 percent owned by Landore and plays host to the Lamaune iron deposit, the Lamaune gold prospect, the VW Nickel deposit, the B4-7 Nickel-Copper deposit, and numerous other highly prospective mineral occurrences.

At Junior Lake in 2011, the firm intends to carry out a 30,000 metre in-fill drilling campaign on the 4.5km central section of the Lamaune Iron deposit to advance it to NI43-101 standard. An airborne geophysical survey over the newly acquired Summit Lake Iron deposit will be completed during Q3 2011, said Landore.

At the Lamaune Gold prospect on the Junior Lake property -  discovered in 2008 near the Lamaune iron deposit - Landore plans extension drilling in conjunction with infill drilling on the Lamaune Iron deposit - beginning in Q4 2011.

In regard to the Junior Lake nickel deposits, where the company is exploring the VW and B4-7 deposits, Landore has the aim of developing their reserves in parallel -  subject to favourable mining economic studies.

The company said that results from the extensive exploration campaign completed during 2010 have been highly successful. Drilling will re-commence on the B4-8 zone and the Swole Lake prospect in mid May 2011 to follow up on encouraging results, it added.

At the Miminiska lake gold project (130km north of Junior Lake) - consisting of targets Miminiska lake and Frond lake, both have good potential for expansion and upgrading to a mineral resource.

At Keezhik Lake, a gold project - 20km north of Miminisa - reconnaissance, mapping and sampling are scheduled during Q3 2011.

At the Root Lake lithium property 300km NW of Thunder Bay, a drilling programme of 2,500 metres has been scheduled to begin in Q3 2011 to increase the confidence level, in-fill and to expand the McCombe exploration target.

Meanwhile at the Lessard copper, zinc and silver project, around 107 kilometres north of the town of Chibougamau in Quebec, which has a September 2008 NI43-101 resource estimate of 740,000 tonnes at 1.88 per cent. Cu, 3.50 per cent. Zn, 38.62 g/t silver and 0.84 g/t gold using a net smelter return (NSR) of US$206.52, a field reconnaissance, mapping and sampling campaign is programmed for the property during Q4 2011. All of the resource is in the inferred category.

At the West Graham property (nickel, copper, platinum group metals)in northern Ontario, First Nickel, which earned 70 percent of the property last year, has begun a feasibility study, said Landore.

Drilling targeted at extending this nickel occurrence is also due to begin in Q3.

The combined resources of the VW and B4-7 deposits delineated to date total NI43-101 48,281 tonnes of nickel equivalent, 82 percent of which is in the indicated category. Both deposits remain open down dip and along strike to the east and west.

Landore believes that for the Junior Lake Nickel project to be economically viable, the above tonnage needs to be increased by 20 to 30 percent. Accordingly, during the autumn and winter of 2010/11 the exploration campaign has been focused towards the discovery of additional nickel mineralisation in the vicinity of the two main deposits.

The Junior Lake property already hosts the Lamaune iron deposit, where the results of a marketing and transportation study were also published today. 

Overall Landore has added around 3,383 hectares to its land position, taking the total Junior Lake area to 35,699 hectares. The Junior lake area now includes the Summit Lake iron deposit, which was discovered back in 1957.

The new claims are 25 kilometres north east of Landore’s Lamaune Iron project.

"Landore has been actively seeking to acquire additional iron deposits within a 50km radius of Lamaune to increase the in-situ iron ore of the potential development past the billion tonnes and further enhance market appeal of the project,” the company said.

Historic exploration, completed in 1962 by Stewart Lake Iron Mines of Toronto Ltd, estimated that the deposit has a possible and probable 35 million tonne resource containing 30% magnetite to a depth of 305 metres.

Landore now intends to conduct a Helicopter-borne geophysical survey over Summit Lake, as well as other nearby areas, in the first half of 2011.

Additionally, Landore said it has completed a marketing and transportation study for Lamaune.

The study concludes that a potential market exists for iron pellets or iron nuggets and it could transport the produce to market by direct rail.

“The market for the Lamaune Iron pellets are the 23 integrated steel mills in North America with a combined capacity of 69 million tons of annual steel production,” Landore said. 

“These steel mills are predominantly located around the Great Lakes and managed by 6 corporations.”

The company believes that its close proximity to key transport infrastructure - it is just 12 kilometres from CN Rail's main Trans-Canada rail line - provides the opportunity to directly transport iron ore pellets from the plant to steel mills in southern Ontario and Ohio

“Feedback indicated that direct rail transport would deliver a highly prised quality pellet that has not been degraded by loading and unloading from iron ore ships,” Landore added.

Crucially, Landore said it is at the stage where it can identify its favoured transportation options and off-take partners.

Subsequently it will begin in-fill drilling on the 4.5 kilometre central section of the Lamaune deposit in the first half of 2011.

This work will advance the central section up to resource compliance, after that an independent firm will be hired to start actively marketing Lamaune Iron.

The initial exploration target of 1.35 million tonnes (Mt) to 1.65 Mt of mineralized material contains between 40,000 and 50,000 ounces of gold at a cut-off grade of 0.3 grammes per tonne (g/t).

Exploration at Toronto Lake at the western end of the Junior Lake property has identified two zones of anomalous gold mineralisations with grab samples returning up to 9.89 g/t.

Trenching and sawn channel sampling is currently in progress.

“Based on drilling results to date, the Lamaune Gold deposit represents a viable advanced exploration target.

“The quantity and grade reported in this mineral resource inventory are conceptual in nature, and it is uncertain if further exploration will result in upgrading the deposit to a mineral resource category,” said independent consultant Fred Brown, who was contracted to prepare a three dimensional model and conceptual mineral resource inventory for the Lamaune Gold deposit, based on the drilling data to date.

The Lamaune Gold deposit remains open at depth and to the east.

Landore is set to carry out extension drilling to the deposit in conjunction with infill drilling on the Lamaune iron deposit starting in Q1 2011. Drilling on the iron deposit is expected to advance that section to a NI43-101 compliant resource.

Landore has commenced a program of marketing its Lamaune iron deposit, which contains contains an estimated 45 Mt at 26% iron to 250 Mt at 37% iron, with North American steel producers and iron ore miners, while evaluating transportation options in the Great Lakes steel market.

The Lamaune gold deposit was discovered in late 2008 by sampling prospective structures and sulphide mineralization of the Lamaune iron diamond drill core for gold.

A drill campaign was completed on Lamaune Gold in the 2009/10 drilling programs, intersecting narrow vein high grade gold and wide zones of lower grade gold mineralization including 0.6 metres grading 118.66 g/t gold and 21.5 metres at 0.99 g/t gold.

Landore has also completed preliminary metallurgical testing of representative samples from Lamaune Gold which indicates that gold recovery from pulp material is 94.4%.

The company has been stepping up its exploration efforts at Junior Lake with exploration costs rising to £1.5 million in the first half.

The project is split in four main areas - the VW Nickel deposit, the B4-7 deposit, the Lamaune iron deposit and the Lamaune gold prospect.

As a result of the discovery, Landore staked a large area of highly prospective land to the north and contiguous with Junior Lake. The property now extends over 31 km (kilometres) and covers 31,953 ha (hectares).

Independent studies have confirmed that the Lamaune iron deposit has a potential size of a minimum half a billion tonnes of iron ore and, coupled with positive metallurgical studies, showed that the deposit had the potential to be economically viable. In March, Landore identified a 545 Mt (million tonnes) iron ore target at Lamaune.

Exploration work and metallurgical studies carried out at the VW and B4-7 deposits at Junior Lake were “attractive enough” together with the improved nickel price to move to scoping and pre-feasibility studies. Landore added that there was “substantial exploration potential” to increase the area of nickel resource.

Drilling recommenced in January, with over 40 drill-holes completed on the Lamaune prospect in the first five months. In May Landore told investors that the exploration work was confirmed the presence of gold mineralization, and identified two distinct zones.

The first of the two distinct zones, the southern zone, is characterised as a southern broad zone of gold low grade mineralization, which has frequent outcropping at the surface. The results highlight from the southern zone cut 25.50 metres at 0.93 grams per tonne (gpt) gold, in drill-hole 1110-94.

The company said that the southern zone mineralization has now been intersected over a 500 metres strike length, and has been drilled to a depth of 200 metres. Furthermore the gold mineralization is open to depth and along strike to the east and west, Landore stated.

The second zone, the northern vein, is described by Landore as a narrow high-grade quartz vein with simple mineralogy, which occurs as 'native gold'. From the Northern vein, the drilling highlight returned 0.5 metres at 46.08gpt gold.

Drilling is still ongoing at Junior Lake.

Exploration costs amounted to £2.7 million compared to last year’s £2.55 million and administrative expenses declined from £1.5 million to £1.1 million. Operating loss dropped from £4 million to £3.8 million. Most of the expenses were covered by two placings that raised a total £2.2 million. Landore said it would need more raisings to fund its development programmes and noted that it had no debt.

During 2009, the company discovered the Lamaune gold prospect at Junior Lake, where drilling has delineated a wide gold mineralised zone over 500 metres of strike length and up to 200 metres depth. The results highlight from the southern zone cut 25.50 metres at 0.93 g/t (grams per tonne) gold. Drilling at the Northern vein returned an intersection of 0.5 metres at 46.08 g/t gold. Metallurgical studies have commenced to determine if the mineralisation is amenable to low cost heap leach processing.

As a result of the discovery, Landore staked a large area of highly prospective land to the north and contiguous with Junior Lake. The property now extends over 31 km (kilometres) and covers 31,953 ha (hectares).

Independent studies have confirmed that the Lamaune iron deposit has a potential size of a minimum half a billion tonnes of iron ore and, coupled with positive metallurgical studies, showed that the deposit had the potential to be economically viable. In March, Landore identified a 545 Mt (million tonnes) iron ore target at Lamaune.

Exploration work and metallurgical studies carried out at the VW and B4-7 deposits at Junior Lake were “attractive enough” together with the improved nickel price to move to scoping and pre-feasibility studies. Landore added that there was “substantial exploration potential” to increase the area of nickel resource.

The report also noted the infrastructure at Junior Lake, which is accessible by good roads all year and is located just 13 km away from the Canadian National Railway, which could provide economic transportation to the port facilities at Thunder Bay. There is also potential to link into the planned hydropower by 2013.

The company pledged to continue with the exploration and development of the Junior Lake projects throughout the rest of this year. The planned works for the current year include the continuation of drilling for exploration, mapping and sampling of trenches exposed for the iron project, the initiation of an independent study to determine the work required to advance the Lamaune gold prospect and complete metallurgical studies for potential heap leach and gravity processing. At Lamaune iron, the company plans the initiation of market research for potential customers in the Great Lakes area. At the Junior Lake nickel projects, Landore plans to commence a scoping study on combined VW and B4-7 deposits and further metallurgical studies on combined VW and B4-7 deposits ore.

Exploration activities will include a geophysical survey over the newly acquired Swole Lake area, covering 17,216 ha and a 1,500 metre drilling campaign o test the area between the VW and B4‑7 deposits, the B4-7 deposit east trend, the B4-8 zone and other targets.

Activities at other projects will include a drilling programme of 1,500 metres at the Miminiska Lake property starting in Q3 and reconnaissance, mapping and sampling is programmed to be carried out at Keezhik Lake when Landore is drilling at Miminiska in Q4 2010.

Landore will have a minimum of three geological exploration teams covering these areas.

Landore owns or has the mineral rights to seven properties in eastern Canada and eight properties for 99 claims in Nevada through a subsidiary.

Other mineralised intersections included 1m at 4.55 g/t gold, 0.5m at 53.12 g/t gold and 21.5m at 0.99 g/t gold including 5.37m at 1.47 g/t gold.

The same drilling programme also intersected other wide zones of broad anomalous mineralisation, which Landore said were encouraging at this stage of discovery and would be further explored in the next drilling campaign on the Lamaune gold prospect, scheduled to commence in January 2010.

High grade gold was also encountered in the exploration drilling program completed this year on the area between the VW Nickel deposit and the B4-7 Nickel-Copper-Cobalt deposit, the 'Whale Zone', with drill hole 0409-252 intersecting 0.75m at 26.10 g/t gold.. This zone is 12 kilometres to the east of the Lamaune gold prospect and runs parallel and adjacent to the BAM gold zone. In addition, historical gold showings on the Junior Lake property include 1.02m at 2.37 g/t gold drilled by Placer Dome in 1988 at the western end of the property and 3m at 13.44 g/t gold in trench sampling recorded by the Ontario Department of Mines in 1968 at the eastern end of the property.

Following the discovery, Landore staked an additional 80 mining claim blocks, for 17,216 ha (hectares), effectively doubling the size of the Junior Lake property to 31,953 ha.

Junior Lake is host to multitude of mineralised targets that the company has been exploring and advancing over the past few years, including the VW Nickel Deposit, the B4-7 Nickel-Copper-Cobalt-Platinum Group Elements deposit and the Lamaune Iron Ore Deposit.  Junior Lake is also prospective for precious metals, including gold.

Junior lake is located 235 kilometres north-east of the Port of Thunder Bay, which sits on the northern shore of Lake Superior - offering a route to both North American and international markets. There is also a railway 11 kilometres from the western end of Junior Lake that connects directly to Thunder Bay. A new hydroelectric power plant is also planned 20 kilometres away on the Little Jackfish River.

Over the past few years, Landore has taken a multi-commodity approach to Junior Lake.  While nickel was the initial focus of exploration on the project, the company has been careful to diversify its exposure, targeting other mineralised bodies.  This model has benefited the company in the past 18 months with the pull back in many commodity prices; Landore has been able to continue advancing its nickel interests while also targeting its iron ore and other prospects to ensure it has several options available for development.

Shares in the company rallied 14% on the news today.

The placing shares will represent 4.1 percent of the enlarged issued share capital.

The group flagged the need to raise additional funds in the fourth quarter to continue further exploration activities when it reported interim results in mid-September 2009 that were in line with company expectations.

The group narrowed its pretax loss in the six months to June 30 2009 to £2.01 million from £2.44 million a year earlier, while exploration costs fell to £1.4 million from £1.61 million.

The company’s primary focus is firmly set on its nickel and iron ore projects at Junior Lake, Ontario, Canada. However, it still holds onto several other assets within its portfolio, including a lithium project in Canada’s Red Lake Mining District, which is better known for its underground gold mines.

Lithium is a hot topic however, and the Root Lake Property, 100 percent owned by Landore, contains a historic resource of 2.297 million tonnes grading 1.3 percent lithium (Li2O) - not compliant to Canadian National Instrument 43-101.  The lithium resource was defined over a strike of 500 meters and widths up to 19 meters.

In recent months, a plethora of Canadian based exploration juniors have turned their attention to lithium, as investor interest increases in the metal. Lithium is used in a number of applications, but it is the forecasted demand from rechargeable batteries for electric or hybrid cars that has speculators salivating about the potential future price of Lithium.

Landore Resources has weathered the recent tidal waves in the capital and commodities markets fairly well, thanks to its diversified portfolio of iron, nickel, gold and other exploration assets, its experienced board, and its strong shareholder base.

Lithium is a hot topic however, and it is easy to understand why Landore would be keen to trumpet the potential value of the Root Lake Property, 100% owned by Landore, which contains a historic resource of 2.297 million tonnes grading 1.3% lithium (Li2O) (not compliant to Canadian National Instrument 43-101).  The lithium resource was defined over a strike of 500 meters and widths up to 19 meters.

In recent weeks and months, a plethora of Canadian based exploration juniors have turned their attention to lithium, as investor interest increases in the metal. Lithium is used in a number of applications, but it is the forecasted demand from rechargeable batteries for electric or hybrid cars that has speculators salivating about the potential future price of Lithium.

Landore for its part has been sitting on Root Lake since 2000, when the company acquired Brancote Canada. The Property, consists of 33 patented claims for a total of 513.43 hectares on which Landore owns both the mineral and surface rights. Root Lake lies 150 km east of Red Lake and 130 km north of Sioux Lookout.
It may be time for UK investors to start researching lithium.