07:00 Tue 08 Jan 2019
Landore Resources Ld - BAM Gold Deposit Mineral Resource Estimate Update
LANDORE RESOURCES LIMITED
("
(AIM Ticker: LND.L)
MINERAL RESOURCE ESTIMATE UPDATE
BAM GOLD DEPOSIT
JUNIOR LAKE PROPERTY
Highlights:
· The new Mineral Resource Estimate (MRE) modelling has significantly increased the BAM Gold resource to: 28,826,000 tonnes (t) at 1.03 grams/tonne (g/t) for 951,000 ounces of gold including 20,198,000t at 1.08g/t for 701,000 ounces gold in the Indicated Category.
· In addition the estimation work has also modelled potential mineralised material in target areas adjacent to the current delineated deposits for a possible 14,761,000t at 0.93g/t ounces gold for a further 441,000 ounces gold, in the 'Unclassified' material category.
· The BAM East Gold Deposit is located approximately mid-way along a highly prospective Archean greenstone belt which traverses the Junior
· The MRE, together with ongoing metallurgical and geotechnical studies, will be incorporated into a Preliminary Economic Assessment (PEA) scheduled for completion in
The BAM Gold Project Mineral Resources have been classified in accordance with the 2012 Australian Code for Reporting of Mineral Resources and Ore Reserves ("JORC Code").
Note: 'Unclassified' material is not a JORC compliant category and has been modelled purely for potential exploration target volume and grade and cannot be utilised for any economic assessment.
Commenting on this report, Chief Executive Officer of
"The 2018 drilling campaign on the BAM Gold Deposit has increased the Mineral Resource Estimate by 53% to 951,000 ounces of gold whilst maintaining the outstanding strike rate of approximately 30 ounces of gold per metre for the 31,594 metres drilled on the Deposit to date together with the excellent conversion rate of Inferred to Indicated and unclassified material into inferred ounces of gold.
The continued rapid growth of the BAM Gold Deposit together with the possible future development of the other known gold prospects such as Lamaune plus the likelihood of new discoveries along this highly prospective 31 kilometre long Archean greenstone belt bodes well for the future of the Junior
The Block Model Classification Image together with the JORC code check list can be found on Landore's web site www.landore.com and also via the links below:
Block Model Classification Image
http://www.rns-pdf.londonstockexchange.com/rns/4086M_1-2019-1-7.pdf
JORC Code Checklist
http://www.rns-pdf.londonstockexchange.com/rns/4086M_2-2019-1-7.pdf
"CUBE Mineral Resource Estimate (MRE) Executive Summary:
The BAM Gold Project Mineral Resources have been classified in accordance with the 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves ("JORC Code"). Table 1 is a summary of the Indicated and Inferred Mineral Resources, effective as of 7th
Table 1:
Resource Category |
Min. Domain |
Au g/t cut off |
Tonnes (kT) |
Grade (g/t Au) |
Contained Metal (kOz Au) |
Indicated |
ALL |
>0.0 |
22,082 |
1.01 |
717 |
>0.3 |
20,198 |
1.08 |
701 |
||
|
|
|
|
|
|
Inferred |
ALL |
>0.0 |
9,733 |
0.82 |
257 |
>0.3 |
8,628 |
0.90 |
250 |
||
|
|
|
|
|
|
Total |
ALL |
>0.0 |
31,816 |
0.95 |
974 |
>0.3 |
28,826 |
1.03 |
951 |
||
|
|
|
|
|
|
Unclassified |
ALL |
>0.0 |
16,034 |
0.87 |
448 |
>0.3 |
14,761 |
0.93 |
441 |
||
|
|
|
|
|
|
ALL MATERIAL |
ALL |
>0.0 |
47,850 |
0.89 |
1,422 |
>0.3 |
43,587 |
0.96 |
1,392 |
Landore is a fully-owned subsidiary of
The objectives of the January MRE were to quantify the global in-situ gold resource, provide models suitable for pit optimisation, mine planning, and MRE reporting with assigned Mineral Resource classification categories, after incorporating all available drilling data and geological interpretations provided by Landore. For the purposes of the Cube MRE work, the BAM Gold Deposit and the original BAM Prospect to the west of the BAM Deposit have been combined in the MRE and collectively called the
Geology and Mineralisation
A highly prospective Archean greenstone belt traverses the Junior
Mineralised structures appear to strike at approximately parallel to lithology's, averaging at 280° strike and steeply dipping to the south between -65 to -80°. Gold mineralisation remains open along strike to the east and west, and down dip.
The gold mineralization is interpreted to reside within a series of tabular shaped zones that are oriented in a roughly en-echelon configuration and are generally parallel to the overall strike of the host rock units. The gold mineralization is commonly observed in drill core to exist as visible gold that is hosted by very thin, foliation-parallel quartz-rich veinlets, hosted by highly fissile ultramafic sediments of the BAM Sequence, or by foliated rocks of the Grassy
Drilling
From 2015 to 2018, Landore has completed several diamond drilling campaigns at the
The 2018 drilling has been highly successful in demonstrating the extension to the west of the main gold mineralization (by 50m x 50m and 100m x 50m patterns) along a strike length of approximately 2,100m and from surface to a maximum vertical depth of approximately 380m. The maximum width of the gold mineralisation envelope being approximately 50m, down to minimum mining width of 3m. The 2018 drilling resulted in the increase in Indicated and Inferred Resource of 53% (contained metal) from the Cube MRE completed in
Drill testing along the eastern strike extension has intersected gold mineralisation hosted within the BAM sequence, previously defined to 3,000E, but now identified at 3,900E and 4,000E. The BAM gold mineralisation has now been intersected over a total strike length of 3000m (from 950E to 4,000E) and remains open to the east and west and down dip.
Mineral Resource Estimation
· Up to
· Geological and mineralisation interpretations in plan and cross sections were followed up with 3D wireframe models based on analysis of all the recent information collated. A total of 21 mineralised domains were modelled for the
· After assessment of all domains, it was decided by Cube that no grade capping would be used for any of the domains as there was either no material difference when applying suitable top cut values, or there were no significant grade outliers within the compositing data inside the estimation domains. Instead a cut-off threshold was applied beyond a set distance away from the extreme sample was applied (half drill hole spacing or 25m;
· Samples were composited to 2m within each estimation domain in order to reduce the variability inherent in raw samples or a smaller composite length relative to estimation resource model block dimensions. The 2m composite length is also closer to mining
· Variogram modelling conducted to provide parameters for OK estimation method - nugget, sill and range for 3 directions;
· Kriging Neighbourhood Analysis ("KNA") was used to assist with assessing the most appropriate block sizes and other estimation parameters such as minimum and maximum samples, discretisation, to be used for the estimation;
· Parent block size of 25m x 10m x 10m in the X, Y, Z directions respectively was used and they were sub-blocked to 6.25m x 2.5m x 2.5m. This was deemed to be appropriate for block estimation and modelling the selectivity for an open pit operation;
· Ordinary Kriging ("OK") estimation method was used to estimate gold into the 3D block model using spatial data analysis parameters informed from the variogram and KNA analyses;
· Au estimated in 3 passes - 1st pass using optimum search distances for each domain (max 100m) as determined through the KNA process, 2nd pass and 3rd pass used, set at longer distances in order to populate all blocks (2nd = max 200m, 3rd > 200m);
· Blocks have been classified as Indicated Mineral Resources or Inferred Mineral Resources. The resource classification is based on the quality of information for the geological domaining, as well as the drill spacing and geostatistical measures to provide confidence in the tonnage and grade estimates. At lower depths and along strike, with limited to no composite data, projected mean grades were applied in the interpolation search - these areas were assigned as unclassified material; and
· The estimation domaining, MRE parameters, classification and block model report replication have all been internally peer reviewed by qualified professionals at Cube.
Pit Optimisation and Mine Design
Given the shallow nature of the mineralization and the initial metallurgical test results, material could be extracted by means of open pit mining methods and processed using conventional milling techniques. 3DM modelling and block construction were created with aim of preparing a suitable model for open pit mine design and pit optimisation.
3DM modelling and block construction have been created with aim of preparing a suitable model for open pit mine design and pit optimisation, with a minimum mining width of 3m. Internal dilution has been considered with a maximum downhole width of 3m (2.5m true width) of sub-grade material (<0.2g/t Au). The minimum block dimensions were selected based on a mining
An information effect was applied to the model and as such, the model was presented as a recoverable resource, implying that the practicalities of the mining operations are accounted for in the estimation process. As a result, Cube has not applied any further mining dilution or ore loss factors to the model.
Metallurgy
A series of metallurgical test programs have been carried out on samples from the BAM Gold Deposit. ALS Metallurgy Americas was engaged by LND in
LND completed additional metallurgical testing on the
Exploration Potential
The 2018 drilling program aimed at testing infill and down dip extensions to known gold mineralisation that is not closed off, and step out drilling to the west of the main gold mineralisation zones at BAM East. This program was highly successful in confirming the gold mineralisation extension to the west and east, and also confirming the correlation of an IP anomaly from geophysics conducted in 2004 with the main BAM gold mineralisation trend to the west, which remains open and un-tested.
Future drill testing recommendations to target gold mineralisation still open along strike and down dip is listed as follows:
· Infill drilling within and below
· Infill drilling and Step out drilling to target strike extensions of the main BAM hosted gold mineralisation - enable potential upgrades of Inferred to Indicated, and potential conversion of Unclassified material to Mineral Resources;
· Highly prospective IP Anomaly targets have been identified by LND previously in 2004 and related to FW massive to disseminated sulphides zones within the main BAM Au mineralised units. In addition there are 3 to 4 WNW trending anomalies that are possible targets for exploration drilling (northern anomalies), and step-out drilling along strike from the BAM sequence;
· Testing of shallow down plunge extent of WNW trending high grade zones by deep drilling (from 200m to 300m depths below surface; and
· Regional Prospectivity - other gold mineralisation targets along the 31km strike length of the Junior
Cube is an Australian owned geological and mining engineering consulting services company located in
End of CUBE Mineral Resource Estimate (MRE) Executive Summary"
Planning:
The MRE, together with ongoing metallurgical and geotechnical studies, will be incorporated into a PEA scheduled for completion in
The Junior
The Junior
A highly prospective Archean greenstone belt traverses the Junior
- ENDS -
About
For more information, please contact:
Cenkos Securities plc
Nominated Advisor and Broker
This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No 596/2014.
Glossary of Key Terms
"assay" |
The chemical analysis of rock or ore samples to determine the proportions of metals
|
"Au" |
chemical symbol for gold
|
"cyanide leaching" |
chemical extraction method using a dilute cyanide solution to leach gold from the mineralisation
|
"diamond drilling" |
drilling method which obtains a cylindrical core of rock by drilling with an annular bit impregnated with diamonds
|
"drill core" |
The cylindrical rock samples obtained by means of annular-shaped rock-cutting bits rotated by a borehole-drilling machines
|
"g/t" |
grams per tonne, equivalent to parts per million
|
"grade" |
relative quantity or the percentage of ore mineral or metal content in an ore body
|
"greenstone" |
green, chlorite rich, generally metavolcanic rocks resulting from low temperature and pressure metamorphism
|
"indicated resource" |
that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed
|
"inferred resource" |
that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability
|
"IP" |
an electromagnetic geophysical method that uses electrodes with time-varying currents and voltages to map the variation of electrical permittivity (dielectric constant) in the earth at low frequencies
|
"Kriging" |
A method of interpolation which predicts unknown values from data observed at known locations. It uses the variogram to express spatial variation, and minimizes the error of predicted values that are estimated by spatial distribution of the predicted values
|
"mineral resource" |
a concentration or occurrence of material of intrinsic economic interest in or on the earth's crust in such form that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral resources are sub-divided, in order of increasing confidence, into Inferred and Indicated categories
|
"mineralisation" |
process of formation and concentration of elements and their chemical compounds within a mass or body of rock
|
"reserve" |
the economically mineable part of a Measured and/or Indicated Mineral Resource
|
" |
selective mining unit-sized blocks
|
"strike length" |
the longest horizontal dimension of an orebody or zone of mineralisation
|
"strike" |
The direction, or bearing from true north, of a vein or rock formation measure on a horizontal surface
|
"veinlets" |
a deposit of non-sedimentary origin, which may or may not contain valuable minerals |
This information is provided by RNS, the news service of the
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of...
FOR OUR FULL DISCLAIMER CLICK HERE