Landore Resources Ltd (LON:LND) told investors that a new drill programme is slated to start in October at the BAM Gold Deposit, Junior Lake property, in Canada.
The programme is expected to comprise 14,000 metres, is fully funded and is intended to complete in March. It will involve resource and extension drilling, it will test the depth potential and evaluate an exploration target.
"The 2020-21 drilling and exploration programme is aimed to grow the existing resource to over 1.3mln ounces of gold together with establishing a defined 'exploration target' in excess of one million ounces in the highly prospective zones to the east and west of the existing resource further confirming the directors view that the BAM Gold Deposit has the clear potential to become a multi-million ounce deposit," Bill Humphries, Landore chief executive said in a statement.
READ: Landore Resources looks forward to new drilling
Other exploration started in July, with an infill soil sampling programme over 2,400 square metres. The company noted that 455 samples have been submitted to the laboratory for analysis, with results expected in September.
The company has additionally updated a review into pit optimisation, as the gold price has risen significantly since December’s preliminary economic assessment. It analyses the project based on a range of gold prices, from US$1,500 to US$2,400 per ounce (current gold price: US$1,985).
It envisages revenue rising to between US$842mln and US$1.97bn across the range, the company said.
Landore noted that at current prices the project’s post-tax net present value would be elevated to US$370mln.