Landore Resources (AIM: LND) told investors that its drilling program at the Junior Lake-Lamaune gold prospect in Ontario continues to intersect widespread gold mineralization. Since drilling recommenced in January, 41 drill-holes, totalling 6,082 metres, have been completed on the Lamaune prospect confirming the presence of gold mineralization, and identifying 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.
The company noted that recent drill results continue to be encouraging, drilling is ongoing on the property and further results are pending.
Furthermore, Landore has begun metallurgical studies to determine the amenability of the low grade gold mineralization to heap leaching, and the high grade gold mineralization to gravity separation. According to Landore, both are simple and low capital cost extraction methods, which could be advanced to production in a relatively short time period.
The company said it is also initiating an independent study to determine the work required to advance the Lamaune gold prospect to resource status.
Landore’s wholly-owned Junior Lake property, which hosts the Lamaune gold prospect, is located in Ontario, approximately 235km north-northeast of Thunder Bay. In addition to the Lamaune gold prospect, Junior Lake also hosts the VW Nickel deposit, the B4-7 Nickel-copper deposit, the Lamaune Iron deposit and a number of other highly prospective mineral occurrences.
In March, Landore identified a 545 Mt (million tonnes) iron ore target at the Lamaune iron prospect at Junior Lake.
The presence of a large magnetite iron deposit at the western end of the Junior Lake property was first reported in October 2008. Further exploration work in the following year together with additional drilling and trenching indicated that the deposit could be of economical significance.
Subsequently, Landore followed-up with the initiation of independent studies to provide an estimate of the potential size and quality of the Lamaune iron deposit.
The independent study identified an exploration target of 545 Mt (million tonnes) at an average grade of 29% Fe at a cut-off grade of 20% Fe and to a depth of 300 metres and an exploration target of 297 Mt at an average grade of 36% Fe at a cut-off grade of 25% Fe and to a depth of 300 metres.
Last month, Landore announced a £1.2 million placing of 11.2 million shares at 11p each, the company earmarked the proceeds for financing working capital and exploration expenditure.