Landore Resources Ltd (AIM:LND) shares fell 35% to 2.39p on Thursday morning after the lifting of a trading suspension and the release of an updated mineral resource estimate (MRE) for its flagship BAM gold project in Ontario.
The company announced that independent consultancy SLR Consulting had completed a revised MRE for the BAM deposit, along with updated figures for its nearby B-47 and VW nickel-copper-cobalt deposits.
The new estimates incorporate recent drilling, infill sampling, and changes to financial inputs such as operating and processing costs.
The updated MRE shows a reduction in headline gold resources at BAM compared with previous estimates.
Within an optimised pit shell, the project now contains 622,000 ounces of gold in the Indicated category and 34,000 ounces in the Inferred category.
That compares to a previously reported global block model estimate of 1.496 million ounces, though that figure was unconstrained.
Despite the downgrade, chief executive Alexander Shaw said the updated estimates provide a “more robust understanding” of the asset. He added that the work de-risks the project and strengthens its comparability with other gold deposits in Ontario.