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Landore Resources Limited is an AIM listed holding company for its 100% owned reporting subsidiary Landore Resources Canada Inc. Landore Canada is engaged in mineral exploration and development, with the present focus of its operations being mineral exploration in Ontario, Quebec and New Brunswick, Canada. Landore Canada’s principal properties are the “Junior Lake Property” and the “Miminiska Lake Property”, both located in the Thunder Bay Mining District, Ontario, Canada. Landore Canada is also the owner of other properties in Canada and Nevada in the US containing gold and base metal drill intersections. The Group’s objective is to become a successful mineral explorer and create capital growth for Shareholders through the discovery of economic mineral deposits.
Landore reports on busy six months at Junior Lake
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.
