Landore Resources Ltd (LON:LND) is looking forward to a couple of important milestones for the BAM Gold deposit in coming months thanks to a successful summer programme of drilling.
A new resource estimation process is anticipated to deliver expanded figures by the fourth quarter, which will in turn tee-up a new preliminary economic assessment (PEA) of the project in the first quarter of next year.
The metals explorer is expecting the PEA to demonstrate the economic viability of the project.
It hopes it will support management’s view that the BAM Gold deposit can be developed into a low-cost open pit mining operation.
WATCH: Landore Resources pleased to see significant increase to BAM resource
“Infill drilling completed this summer will be incorporated into the updated mineral resource estimate which is projected to increase the strike length of the BAM Gold Deposit to 2.1 kilometres,” Landore said in its interim results statement.
“This, together with exploration drilling east of the defined mineral resource, bodes well for the possibility of finding and delineating further gold deposits along this highly prospective Junior Lake trend.”
Based on previous estimates, BAM was seen to have some 623,000 ounces of contained gold resources (18.58mln tonnes of mineralization at a grade of 1.04 grams per tonne) in the indicated classification.
Some 12,000 metres of new drilling was completed in the summer drill programme, and work is ongoing with latter holes due to test the gold potential approximately one kilometre to the east of the currently defined mineral resource estimate.
The pre-revenue explorer reported a £1.25mln loss for the first six months of 2018, including £892,124 of exploration costs.
It ended June with £2.22mln of cash and equivalents.