REG - Landore Resources Ld - Final Results, Notice of AGM and Board Changes
04/05/2023 07:00
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RNS Number : 4040Y Landore Resources Limited 04 May 2023
4 May 2023
Landore Resources Limited
("Landore Resources" or the "Company")
Final Results for the Year Ended 31 December 2022, Notice of Annual General
Meeting and Planned Board Changes
The Board of Landore Resources (AIM: LND) is pleased to announce the Company's
final results for the year to 31 December 2022.
The Company's forthcoming Annual General Meeting ("AGM") is to be held at La
Tonnelle House, Les Banques, St Sampson, Guernsey, GY1 3HS at 11.00 a.m. on 29
June 2023.
The full 2022 Annual Report and the formal Notice of AGM will shortly be made
available on the Company's website at: www.landore.com
(http://www.landore.com) and posted to shareholders.
Charles Wilkinson, Non-Executive Chairman, and Bill Humphries, Chief Executive
Officer ("CEO"), have informed the Board that they intend to retire and will
therefore not be standing for re-election at the forthcoming AGM. Huw Salter
will assume the role of Non-Executive Chairman of the Company following the
AGM. As part of the Company's succession planning, a third party professional
recruitment firm was appointed some time ago to assist the Board with regards
to the identification and appointment of a new CEO and this process is now
well advanced. Following his retirement at the AGM, it is intended that Bill
will remain as a consultant to the Company for a limited period to facilitate
an orderly transition of his responsibilities. If a suitable replacement CEO
is not appointed by the date of the AGM, Michele Tuomi, currently a director
of Landore Resources Canada Inc., will assume the role of a non-Board interim
CEO until such time as a permanent hire is secured.
The Board would like to take this opportunity to express its sincere gratitude
to both Charles and Bill for their long-standing service and valued
contribution to the Company's development over the last circa 17 years and
wishes them all the best for their forthcoming retirements.
For further information, please contact:
Landore Resources Limited
Bill Humphries, Chief Executive Officer Tel: 07734 681262
Glenn Featherby, Finance Director Tel: 07730 420318
Strand Hanson Limited (Nominated Adviser and Broker)
James Dance/Matthew Chandler/Robert Collins Tel: 020 7409 3494
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.
Key Extracts from the Company's 2022 Annual Report are set out below:
Chief Executive Officer's Statement
I am pleased to present the 2022 Annual Report and financial statements for
Landore Resources Limited ("Landore Resources" or the "Group").
During 2022, the Group focussed entirely on its Junior Lake property with
works to expand the potential of existing deposits and to identify new
prospects. A revised Preliminary Economic Assessment ("PEA") on the BAM Gold
Deposit was completed in Q2 2022 which combined with the 50% resource increase
reported in February 2022, reaffirmed the potential profitability of this
project. The resource has excellent growth potential remaining open at depth
and along strike to the east and west, all within established mining leases
which cover more than 20 kilometres potential strike length.
Diamond drilling completed in 2022 delineated gold and strategic metals eight
kilometres westwards along strike from the 1.5-million-ounce BAM Gold Deposit
and the B4-7/VW Nickel-Copper-Cobalt-Palladium-Platinum Deposits
(Ni-Cu-Co-PGEs). Regional soil sampling west of the BAM Gold Deposit and
strategic metals B4-7 and VW Deposits yielded multiple targets along 12
kilometres showing considerable promise for deposit expansion for both gold
and strategic metals. The Group is committed to further developing these
exciting discoveries.
Strategic Review
In light of the significance of the BAM Gold and Strategic Metals deposits
located on the Junior Lake property, in Q2 2022, the Group embarked on a
review of the options available to the Group in relation to its Canadian
subsidiary/assets. Various options were considered, including the potential
sale of Landore Resources Canada Inc, or the Junior Lake Project, potential
joint venture arrangements and strategic partnerships.
The Strategic Review process generated significant interest in the Company's
Canadian subsidiary / assets and whilst positive outcomes from the process
have arisen, including the sale of Landore Resources retained 3% NSR on the
non-core Root Lake asset, together with the completion of an option agreement
for the potential purchase of 80% of the Junior Lake Lithium area, due to the
prevailing challenging market conditions the Group did not believe it to be
possible to maximise the value of the Group's assets through a corporate
transaction. Accordingly, the Group determined that it would be in
shareholders' best interests for management to continue to focus on developing
the value within existing assets in the near term.
Exploration
In Summer/Autumn 2022, Landore Resources' Geological team completed a highly
successful soil sampling programme to the west of the BAM Gold project over a
distance of 8 kilometres, infilling the previously sampled Felix area and
advancing the sampling into the Lamaune area. The soil sampling successfully
infilled and confirmed the presence of highly anomalous gold and strategic
metals occurrences and trends in the above areas thereby providing numerous
direct drill targets.
In addition, a drilling programme was completed in the same area targeting
previously identified gold and strategic metals mineralisation, over a
distance of 8 kilometres westwards along strike from the BAM Gold and B4-7/VW
Nickel-Copper-Cobalt-Palladium-Platinum deposits (Ni-Cu-Co-PGEs).
This drill campaign, completed in December 2022, consisted of 43 drill holes
(0422-827 to 0422-846, and 1122-152 to 1122-175) for 7,635 metres of NQ and HQ
size diamond core on the Felix - Carrot Top Zones and Lamaune Gold Prospect.
Drilling successfully intersected precious and/or strategic metals
mineralisation in all areas, which warrants follow-up works. Please refer to
the Operations Report for further details.
Financial Results
For the year ended 31 December 2022, the Group incurred a loss, after tax, of
£1,860,585 (2021: £3,991,717).
Operating expenses were in line with our budgets and expectations. Financing
has been obtained through shareholders exercising their outstanding warrant
entitlements from the July 2020 fund raise, totalling £1,698,627, together
with the proceeds of the sale of Landore Resources 3% Net Smelter Return (NSR)
retained interest over the Root Lake Property for the sum of C$3,000,000.
In 2022, the Group also received C$500,000 cash plus C$500,000 equivalent in
shares in respect of scheduled option payments towards the purchase of the
Group's non-core assets.
Post Year End Events
To date the Group has received a further C$500,000 cash plus C$250,000
equivalent in shares in respect of scheduled option payments towards the
purchase of the Group's non-core assets.
For further information on our non-core asset disposals please refer to the
Company's announcements of 10 October 2022, 31 January 2023 and 6 March 2023.
The Group has no debt and will continue to raise further equity as needed to
carry out its development plans. Shareholders have been very supportive of the
Group's financing needs and the Directors are confident of raising further
funds as required.
The Junior Lake Property
The Junior Lake Property, which is 100% owned by Landore Resources, is located
in the province of Ontario, Canada, approximately 235 kilometres
north-northeast of Thunder Bay. It is host to the BAM Gold Deposit, the B4-7
Nickel-Copper-Cobalt-PGEs Deposit, the VW Nickel-Copper Deposit and numerous
other highly prospective mineral occurrences.
The Junior Lake Property together with the adjacent 90.2% owned Lamaune Lake
property extends for 31 kilometres across a highly prospective Archean
Greenstone Belt and covers an area of 33,029 hectares.
BAM Gold Deposit
A revised Preliminary Economic Assessment ("PEA") reported by Landore
Resources on 9 May 2022, further confirmed the potential profitability of the
BAM Gold deposit. The PEA considered the economics for exploiting resources
inside optimised pit shells of 22.4 Mt at 1.16g/t Au containing 833,000 ounces
gold using a long-term gold price of US$1,800. The project assumes the
construction of a 2.2 Mt per annum processing plant over four quarters
followed by a production period of 10.5 years.
The PEA indicates that the BAM Gold Project could generate pre-tax and
post-tax NPVs of, respectively, US$333.6 million and US$231.2 million and
pre-tax and post-tax real IRRs of 87.4% and 66.7%. The BAM Gold Project has an
after-tax simple pay back period of 1.25 years from the start of production or
2.25 years from the start of the project.
The BAM Gold Deposit now extends 4,300 metres from local cut grid line 200W to
4100E and remains open down dip and along strike to the east and the west.
Strategic Metals Deposits
The burgeoning interest for electric vehicles has significantly increased
demand for strategic metals throughout the world, such as nickel, cobalt and
lithium. The Junior Lake Property is host to two defined strategic metals
deposits, the B4-7 and VW, which between them contain 55,581 tonnes of nickel
equivalent metals with further growth potential. In addition, there are
numerous other untested strategic metals prospects along the highly
prospective Archean Greenstone Belt traversing the Junior Lake property.
The Group is currently reviewing its strategic metals deposits and occurrences
with the aim of maximising value from the promising uplift in demand in this
sector.
Further details are set out in the Operations Report.
Planned works for 2023
The Group's plans for 2023 are to focus on advancing its highly prospective
BAM Gold Project towards a two-million-ounce resource estimate, together with
completing a pre-feasibility study. Additionally, the Group plans to further
cultivate the potential of its strategic metals deposits (B4-7
Nickel-Copper-Cobalt-PGEs deposit, and VW Nickel-Copper deposit) and other
highly prospective occurrences including advancing the Grassy Pond and Carrot
Top prospects towards resource status.
Social and Environmental Responsibility
The Group continues to enjoy solid working relationships with the local First
Nations on whose traditional lands our Junior Lake Property is located.
Landore Resources believes that a successful project is best achieved through
maintaining close working relationships with the First Nations and other local
communities.
Planned Board Changes
Charles Wilkinson and I have been directors of the Company since 2005 and
believe it is now an appropriate time to step down from the Board.
Accordingly, we will both be formally retiring at the Company's forthcoming
Annual General Meeting ("AGM") to be held on 29 June 2023. Huw Salter will
assume the rule of Non-Executive Chairman of the Company at that time, and a
process is currently well underway with regards to the identification and
appointment of a new Chief Executive Officer ("CEO"), involving the services
of an external professional recruitment company. Once an appropriate
replacement is found, I intend to remain as a consultant to the Company for a
limited time, in order to facilitate an orderly transition of my
responsibilities. If a suitable replacement CEO is not appointed by the date
of the AGM, Michele Tuomi, currently a director of Landore Resources Canada
Inc., will assume the role of a non-Board interim CEO until such time as a
permanent hire is secured.
I wish Huw and my colleagues on the Board my best wishes for the Company going
forwards and look forward to the next stages in the Company's development.
On behalf of my fellow directors, I wish to thank our shareholders for their
continued support together with the Company's Management and Exploration team
for their dedication and perseverance in advancing our highly prospective
Junior Lake Property.
William Humphries
Chief Executive Officer
3 May 2023
Operations report
Introduction
Landore Resources Limited, through its 100 per cent. owned subsidiary Landore
Resources Canada Inc. ("Landore"), is actively engaged in mineral exploration
in Eastern Canada. Landore owns or has the mineral rights to three properties
in Eastern Canada including its highly prospective Junior Lake Property.
Additionally, through Landore's 100% owned subsidiary Brancote US, the Group
owns or has the mineral rights to a further eight properties for 99 claims in
the State of Nevada in the US.
During 2022, all of Landore Resources' exploration efforts were focussed on
the Junior Lake Property. A drill programme, completed in Q4 2022,
successfully identified gold and strategic metals (nickel, copper, cobalt,
PGEs) one to eight kilometres west along strike from the 1.5-million-ounce BAM
Gold Deposit and the B4-7/VW Nickel-Copper-Cobalt-Palladium-Platinum deposits
(Ni-Cu-Co-PGEs). Additionally, soil sampling was completed to infill and
extend the 2019/20 soil sampling programme and test precious and strategic
mineral potential in the Felix and Lamaune areas located from one to twelve
kilometres west of the BAM Gold Deposit, thus revealing additional exploration
potential for deposit expansion.
In Q4 2022, Landore sold its remaining 3% net smelter royalty interest over
the Root Lake Project, a non-core asset which the Group sold in 2016. Landore
continues to receive payments in respect of another non-core asset, the
Miminiska / Keezhik Lake property, which in 2021 was optioned subject to
certain terms and conditions. Landore will be entitled to receive a 2% NSR
from this property subject to a buyback clause.
In Q1 2023, Landore entered into an option agreement with Green Technology
Metals Limited granting it the right to purchase an 80% interest in certain
tenements covering 10,856 hectares containing Lithium prospects within the
Junior Lake Project. Landore will be entitled to receive a 2% NSR from this
property subject to a buyback clause.
Full details of the Group's projects, including maps and Canadian National
Instrument 43-101 (NI 43-101) resource reports can be viewed on the Group's
website, www.landore.com.
JUNIOR LAKE PROPERTY
The Junior Lake Property, 100% owned by Landore, is located in the province of
Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay.
It is host to precious and battery metals deposits, notably the BAM Gold
Deposit, the B4-7 Nickel-Copper-Cobalt-PGEs Deposit with adjacent Alpha PGEs
zone and the VW Nickel-Copper Deposit. Junior Lake also contains numerous
other highly prospective mineral occurrences.
Junior Lake Property
The Junior Lake Property is comprised of the Junior Lake claim group and the
immediately adjacent claim group of Lamaune Iron Inc. ("Lamaune Iron"), a
subsidiary company of Landore (90.2% ownership).
Landore's Junior Lake Property, including the Lamaune claim group, consists of
1,318 staked mineral claims and six mining leases, together totalling
approximately 33,029 hectares. The property extends for 31 kilometres across a
highly prospective Archean Greenstone Belt.
2022 Drill Campaign
In July 2022, Landore commenced drilling aimed at targeting previously
identified gold and battery metals mineralisation over a distance of 8
kilometres westwards along strike from the BAM Gold and B4-7/VW
Nickel-Copper-Cobalt-Palladium-Platinum Deposits (Ni-Cu-Co-PGEs).
This drill campaign, completed in December 2022, consisted of 43 drill holes
(0422-827 to 0422-845, and 1122-152 to 1122-175) for 7,635 metres of NQ and HQ
size diamond core on the Felix - Carrot Top Zones and Lamaune Gold Prospect.
Drilling successfully intersected precious and/or battery metals
mineralisation in all areas, including drill hole 0422-846 on local cut grid
line 3500W in the Grassy Pond Prospect within the Felix Zone, intersecting
significant palladium-enriched nickel mineralisation over 25.84 metres with
822ppm Nickel, 1087ppm Copper, 81ppb Platinum, and 290ppb Palladium from 35.26
metres, including 0.75 metres 1,425ppm Ni, 1,430ppm Cu, 773ppb Pt, and
2,540ppb Pd from 36.20 metres.
Regional deposits and prospects along airborne electromagnetic anomalies
Felix Zone - Grassy Pond Prospect
Battery Metals (Nickel, Copper, Cobalt, PGEs), Gold
A drilling programme consisting of 22 drill holes for 3,881 metres of NQ
diamond core 0422-827 to 0422-845 and 1122-152 to 1122-153 plus one HQ diamond
core 0422-846, was completed on the Felix area from 1100W to 5000W along
strike to the west from the BAM Gold and B4-7/VW Battery Metals deposits. The
programme was split into three zones:
Zone 1: Gold
Comprising 9 drill holes for 1,509 metres (0422-827 to 0422-834), to explore a
cluster of conductors MM-23, 24, 27 and 28 along the north-eastern portion of
Felix from cut grid line 1100W to 2000W. All lithologies encountered at BAM
were observed at Felix but are significantly less deformed. Anomalous gold
was recorded with the highest level being a near-surface intersection of
438ppb in drill hole 0422-832 over 1.1 metres from 55.0 metres.
Zone 2: Gold, Copper
Comprising 7 drill holes for 1,280 metres (0422-835 to 0422-842), to explore
conductor MM-21 east, a possible extension of the B4-8 Zone, along the
southeastern area of Felix from 1300W to 1700W. Lithologies were similar to
the B4-8 however the conductors intercepted were generally associated with
mild to moderately deformed Banded Iron Formation. Results indicated some
elevated gold, copper and cobalt results, including:
Drill hole 0422-839 reporting 0.39g/t Au and 1.46% Cu over 1.07m from 36.33m.
Drill hole 0422-840 reporting 1.82g/t Au and 0.81% Cu over 1.14m from 31.00m.
Drill hole 0422-842 reporting 1.90g/t Au and 0.03% Co over 0.53m from 145.87m.
Zone 3: Battery Metals (Nickel, Copper, Cobalt, PGEs)
Comprising 5 drill holes for 1,005 metres (0422-843 to 0422-846 and 1122-152
to 1122-53) to explore the conductor MM-21 west plus the Grassy Pond prospect
from 3000W to 5000W. Results were generally promising especially in the
vicinity of the Grassy Pond prospect, including:
Drill hole 0422-843 reporting 0.61g/t Pd and 0.19g/t Pt over 1.97m from
162.53m.
Drill hole 0422-845 reporting 0.34g/t Pd and 0.11g/t Pt over 21.74m from
115.10m.
Including 1.45g/t Pd and 0.51g/t Pt over 0.70m from 116.30m and 1.86g/t Au and
0.55% Cu over 1.00m from 23.00m.
Follow-up drilling on hole 0422-846 (50 metre step-forward to 0422-845)
successfully projected the wide palladium enriched nickel mineralisation to
near surface, reporting 25.84 metres of 822ppm Ni, 1087ppm Cu, 81ppb Pt, and
290ppb Pd from 35.26m, including 0.75 metres 1425ppm Ni, 1430ppm Cu, 773ppb
Pt, and 2540ppb Pd from 36.20m.
Drilling successfully extended the Grassy Pond Prospect, which now extends 650
metres from line 3500W to 4150W and remains open to the east and west.
Carrot Top Zone
Strategic Metals (Nickel, Copper, Cobalt, PGEs)
A drilling programme of 20 drill holes for 3,436m of NQ diamond core, 1122-154
to 1122-173, was completed on the Carrot Top Zone located approximately 8
kilometres along strike to the west of the BAM Gold and B4-7/VW Battery Metals
deposits. The Carrot Top Zone was previously drilled from 2003 to 2008
reporting significant palladium-enriched nickel mineralisation. The latest
programme was aimed at infilling and extending the above area to allow
modelling for resource purposes.
Results received to date include:
Easting Northing Drill-hole From Width* Ni Cu Co Au Pt Pd
No Metres Metres ppm ppm ppm ppb ppb ppb
10500 10000 1122-156 104.6 6.00 993 469 91 10 29 112
and 134.18 1.71 2406 971 219 173 65 293
10600 10000 1122-154 51.64 16.19 1674 1006 138 7 36 146
including 51.64 0.36 17200 700 1055 21 157 663
including 61.25 6.58 1676 1000 152 11 53 224
and 80.20 12.52 1045 755 108 7 30 125
10600 10010 1122-155 83.25 1.4 3486 816 290 8 64 235
and 110.60 0.5 1685 2640 152 6 59 279
and 113.50 3.65 1274 946 130 6 68 242
10700 10000 1122-157 79.00 1.00 1995 675 193 1 23 180
and 87.6 6.32 1433 578 135 2 25 117
including 92.28 0.47 4070 1570 358 9 51 483
10800 10000 1122-158 29.80 16.10 1059 344 114 3 18 70
11100 10050 1122-160 59.82 3.70 1311 82 81 10 2 2
11100 10100 1122-161 4.48 19.70 1165 150 83 1 1 <1
11170 10000 1122-162 17.09 3.06 1150 843 114 4 56 130
and 32.43 7.13 1393 1064 127 5 44 153
11315 10100 1122-163 116.78 7.00 1505 1172 136 6 45 222
and 131.26 2.17 1694 1303 175 4 73 285
11360 10080 1122-164 148.54 4.67 1306 664 128 2 37 146
1122-165 131.74 1.26 1550 2020 160 9 18 172
10900 10090 1122-166 44.62 39.88 622 151 63 5 10 31
including 56.95 2.05 2858 883 197 16 31 166
1122-167 87.94 7.25 1107 326 109 1 21 77
10600 10060 1122-169 133.00 4.75 1158 777 121 8 32 151
and 169.20 1.05 2150 1475 254 2 <5 172
10500 10050 1122-171 192.56 2.72 1548 671 139 15 29 118
*The actual true thickness of mineralisation is estimated to represent between
75%-80% of the intervals shown in the above table.
Lamaune Gold Prospect
Gold
The Lamaune Gold Prospect is located 300 to 500 metres to the north and
parallel to the Carrot Top Zone. A drilling programme consisting of 2 drill
holes for 405 metres of HQ diamond core, 1122-174 to 1122-175, was completed
in this area prior to the winter break, The core has been logged and will be
processed and sent for assay on re-commencement of 2023 operations.
Exploration - Soil Sampling
Gold plus Strategic Metails (Nickel, Copper, Cobalt, PGEs)
During the summer of 2022, soil sampling was conducted on the Junior Lake
Property aimed at infilling and extending the 2019/20 soil sampling programme.
A total of 1,699 samples (inclusive of QAQC samples) were collected, nearly
doubling the total number of samples for the property. Soil sampling occurred
at the B horizon at a nominal spacing of 25 metres.
Felix Zone:
An infill and extension soil-till sampling programme was completed on the
5.5-kilometre-long Felix zone located to the immediate west and along strike
of the BAM Gold Deposit. A total of 1,177 soil-till samples were taken
infilling the existing wide spaced samples taken in 2020/21 together with
extending the western area from 4000W to 6000W for 1.5 kilometres further to
the south to cover a highly prospective geophysical anomaly identified by the
2004 geophysics programme.
Lamaune Area:
In addition, the soils programme was extended further to the west along strike
into the adjacent Lamaune area covering the Carrot Top Strategic Metals
prospect, 377 soil-till samples, and still further to the west over the
historic Placer Gold Zone, 145 soil-till samples.
In Q1 2023, an interpretation report was completed on Landore's soil sampling
programmes to-date. It concluded that the 2022 soil programme had built and
expanded upon previous sampling programmes, further refining previous gold
exploration targets as well as identifying new targets across the property.
This includes further delineating and refining the western trend from the BAM
Gold Deposit for greater than five kilometres.
The report focused on refining previous gold exploration targets as well as
identifying new targets across the property. The increased sample density
assisted with interpretation and enabled the identification of regional trends
and possible Riedel shear structures. From these results four priority areas
have been detailed, all of which merit additional follow up work:
Soil anomalies show a gold trend extending east of the BAM Gold Deposit for
2.0km. Limited diamond drilling for 1.0km along the trend has shown that
mineralisation continues leaving the additional 1.0km untested and the anomaly
open to the east:-
Anomalous gold values are associated with linear, magnetic anomalies between
Juno Lake and Boras Lake. These trends can be linked to the BAM Gold Deposit
to the east and are open to the west:-
Expansion of the northern portion of the Carrot Top Grid to the east, towards
the Lamaune Gold Prospect, and to the west, towards historic Placer Dome
drilling. Data indicates a possible extension of the Lamaune Gold trend:-
Preliminary data from widely spaced lines south of the Felix Lake Grid have
returned promising results from a previously under explored area. Additional
work is required to expand upon the results.
In addition, interpretation of the soil sampling with available diamond
drilling data has shown that soil anomalies do correlate with anomalous gold
mineralisation. Wide spaced diamond drilling in the Felix Lake Grid area and
along the eastern portion of the BAM Gold Deposit has returned anomalous gold
(>100 ppb Au) in drill core. These locations have coincident soil anomalies
associated with them. Interpretive work has concluded that the soil anomalies
are localised and indicate near-by targets for further exploration.
Soil gold anomalies showing regional growth potential
It is Landore's opinion that the Junior Lake Property has excellent potential
to host significant volumes of highly valuable strategic metals, including
palladium enriched sulphide nickel with associated cobalt and copper, the
presence of which has now been established through drilling for 11 kilometres
from the Carrot Top Zone in the west to the B4-7, Alpha zone and VW
Nickel-Copper-Cobalt-PGEs compliant deposits in the east, with the remaining
20 kilometres of the highly prospective greenstone-shear zone, transecting
Landore's Junior Lake property, yet to be explored. Additionally, the Landore
Board believes that this shear zone has tremendous prospectivity for a
multi-million-ounce gold deposit.
2023 Planned Works:
Landore's plans for 2023 are to focus on advancing its highly prospective BAM
Gold project, targeting a two-million-ounce resource estimate together with
completing a pre-feasibility study, concentrating on:
The underground potential at BAM as identified by Cube Consulting Pty Ltd
("Cube") in its February 2022 Resource Upgrade and subsequent Technical Report
and PEA:-
Advancing the existing Inferred resource into an Indicated resource together
with infilling the exploration targets to the immediate east and west of the
current resource; and
Commencing pre-feasibility studies in Q2 to advance the BAM Project towards
potential future production.
BAM GOLD DEPOSIT:
The BAM Gold Deposit (formerly BAM East Gold Deposit) is located approximately
2 kilometres to the east of the B4-7 Deposit and 1 kilometre north of the VW
Deposit and is situated midway along an east-southeast to west-northwest
trending MaxMin geophysical anomaly (MM-7). This Archean-aged mesothermal gold
deposit, hosted in variably sheared and deformed lithological units, consists
of near-surface low grade gold with periodic intervals of higher-grade gold.
The latest BAM Gold resource estimate and report, completed by Cube of Perth,
Western Australia and reported by Landore on 8 February 2022, increased the
in-situ resource to:
49,231,000 tonnes (t) at 1.0 gram/tonne (g/t) for 1,496,000 ounces of gold
including 30,965,000t at 1.0g/t for 1,029,000 ounces gold in the Indicated
Category and 18,266,000t at 0.8g/t for 467,000 ounces of gold in the Inferred
Category (compliant with National Instrument 43-101 Standards of Disclosure
for Mineral Projects (NI 43-101)).
A revised Preliminary Economic Assessment ("PEA") subsequently reported by
Landore on 9 May 2022, considered the economics for exploiting resources
inside optimised pit shells of 22.4 Mt at 1.16g/t Au containing 833,000 ounces
gold using a long-term gold price of US$1,800. The project assumes the
construction of a 2.2 Mt per annum processing plant over four quarters
followed by a production period of 10.5 years.
The PEA indicates that the BAM Gold Project, at a gold price of US$1,800 per
ounce, could generate pre-tax and post-tax NPVs of, respectively, US$333.6
million and US$231.2 million and pre-tax and post-tax real IRRs of 87.4% and
66.7%. The BAM Gold Project has an after-tax simple pay back period of 1.25
years from the start of production or 2.25 years from the start of the
project.
This PEA, combined with the 50% resource increase reported in February 2022,
reaffirms the potential profitability of the BAM Gold Project. The resource
has excellent growth potential remaining open at depth and along strike to the
east and west, all within established mining leases which cover more than 20
kilometres potential strike length.
BAM Gold Deposit, January 2022 Mineral Resource Update
The resource now extends 4,300 metres from grid line 200W to 4100E and remains
open down dip and along strike to the east and the west. In addition, soil
sampling has identified widespread gold mineralisation along strike to the
west for a further 12 kilometres.
The BAM Gold Deposit has the potential to be initially developed as a low
cost, bulk tonnage, open pit operation.
JUNIOR LAKE STRATEGIC METALS:
The burgeoning demand for strategic metals is seeing the value of Landore's
B4-7 and VW Deposits contained metals increase substantially. The Junior Lake
Ni-Cu-Co-PGEs deposits and prospects are located along the southern margin of
a major zoned gabbro complex named the 'Grassy Pond Sill'. The Grassy Pond
Sill is situated within a shear zone along the highly prospective Archean
greenstone belt traversing the Junior Lake Property from east to west for
approximately 31 kilometres. This shear zone also hosts the BAM Gold Deposit
along its northern margin.
B4-7 NICKEL-COPPER-COBALT-PGEs DEPOSIT:
No material work has been completed on the B4-7 since the discovery of the BAM
Gold Deposit in December 2015 as the Company has instead focussed on the rapid
progression of the gold project.
The B4-7 resource estimate and report, completed by RPA Inc. (RPA) independent
engineers of Toronto, Canada in January 2018, was compliant with the
requirements of NI 43-101. The resource, so far delineated over 900 metres of
strike and a depth of 550 metres, remains open down plunge at depth and along
strike to the west.
Table 1-2 MINERAL RESOURCES FOR THE B4-7 NICKEL-COPPER-COBALT-PGES
DEPOSIT AND ALPHA ZONE-1 DECEMBER, 2017
Landore Resources Canada Inc. - Junior Lake Project
Deposit Tonnes Ni Cu (%) Co (%) Pt (g/t) Pd (g/t) Au (g/t) NiEq (%)
(%)
Open Pit
Indicated Alpha 132,000 0.23 0.09 0.02 0.18 0.99 0.01 0.63
B4-7 1,640,000 0.62 0.41 0.05 0.14 0.55 0.03 1.20
Inferred - - - - - - - -
Underground
Indicated B4-7 1,520,000 0.65 0.45 0.06 0.12 0.48 0.03 1.25
Inferred B4-7 568,000 0.61 0.52 0.05 0.08 0.50 0.03 1.26
Total
Indicated 3,292,000 0.62 0.42 0.05 0.13 0.53 0.03 1.20
Inferred 568,000 0.61 0.52 0.05 0.08 0.50 0.03 1.26
Notes:
CIM (2014) definitions were followed for Mineral Resource estimation and
classification.
Mineral Resources are estimated using average long-term metal prices (US$) of
$8.00/lb nickel, $3.50/lb copper, $19.00/lb cobalt, $1,400/oz platinum,
$1,000/oz palladium, and $1,400/oz gold and an exchange rate (C$/US$) of 1.25,
and the NSR factors stated in the body of RPA's Report.
Open Pit Mineral Resources are reported within a resource pit shell at an NSR
cut-off value of $22/t. Underground Mineral Resources are reported at an NSR
cut-off value of $62/t.
Tonnage figures are rounded to three significant figures. Totals may not add
correctly due to rounding.
The Mineral Resource estimate uses drill hole data available as of 16
December, 2015.
The Mineral Resource estimate for the B4-7 Deposit is reported using densities
calculated from estimated nickel + cobalt grades. The Mineral Resource
estimate for the Alpha Zone is reported using densities calculated from
estimated nickel grades.
B4-7 Deposit - Open Pit, Underground Resource
The report also identified a new Exploration Target located immediately west
of the B4-7 Deposit containing a potential 1.5 Mt to 2.0 Mt of sulphide
mineralisation of similar grade range to that which has been outlined to-date
(potential 18,000 to 24,000 tonnes of contained metal).
There is significant value in the B4-7 Deposit, in particular from its cobalt
and palladium content. The B4-7 2018 resource upgrade reported a significant
cobalt content credit of +4.6 million pounds for the deposit to date together
with +66,000 ounces of Palladium. However, the adjacent Alpha Zone, which has
only partially been included in the B4-7 resource, is palladium/platinum rich
with historic drilling reporting intersections of 1.5 metres at 10.15g/t Pd in
drill hole 0415-507 and 20.15 metres at 1.54 g/t Pd. in drill-hole 0414-503
including 0.72 metres at 12.85 g/t Pd.
VW NICKEL-COPPER-COBALT DEPOSIT:
In the same January 2018 report, RPA determined the VW Deposit to contain
1,084,000 tonnes at 0.71% NiEq in the Indicated category and 180,000 tonnes at
0.68% NiEq in the Inferred category for a total of 8,920 tonnes of contained
metal.
Infrastructure: The city of Thunder Bay is located on the northern shore of
Lake Superior and is the main supply hub for the mining centres of northern
Ontario including Red Lake, Pickle Lake, and the Musselwhite gold mine. It has
extensive port facilities and an airport providing daily flights to major
provincial cities, as well as a rail line that provides access to both eastern
and western North American markets.
Access to Junior Lake from Thunder Bay is via a sealed highway for 235
kilometres to the town of Armstrong and then via a well-maintained forest
product unsealed road for 105 kilometres that runs to the property.
The Canadian National Railway runs parallel to the Junior Lake property 13
kilometres to the south, providing direct transport access to both the nickel
smelting centre of Sudbury and the port facilities at Thunder Bay. In
addition, Junior Lake has abundant water resources nearby.
Environmental Baseline Studies
Golder Associates of Sudbury, Ontario, have continued with the Environmental
Baseline Studies programme initiated on the mining leases containing the BAM,
B4-7 and VW Deposits in the winter of 2007. Water surface monitoring of lakes
and drainage tributaries within the vicinity of the deposits have continued
since 2011. The area of influence has recently been expanded to include lakes
and drainage further out from the leases. The environmental and baseline
studies are all pre-requisite for permitting requirements for the future
development of the BAM, B4-7 and VW Deposits.
Mining Leases
A pre-requisite for the development of the BAM, B4-7 and VW Deposits is to
secure tenure over an area of land sufficiently large to provide for
development, mining, processing, infrastructure and buffer zones around the
mining areas and for future expansion. Landore has been granted three mining
leases ("Mining Leases"), which include mining and surface rights, over an
area encompassing the BAM, B4-7 and VW Deposits.
The mining leases cover 23 existing exploration claims for a total area of
3,676 hectares and have been granted for 21 years renewable for further terms
of 21 years. Additionally, in late 2019, Ontario's Ministry of Northern
Development, Mines, Natural Resources and Forestry granted the Company Mining
Leases 109856 and 109857 encompassing all of Lamaune Iron Inc.'s exploration
claims over an area totalling approximately 4,133 hectares. The combined
Landore and Lamaune Mining Leases cover a total of approximately 7,809
hectares and extend for 22 kilometres, encompassing all of Landore's
established mineral deposits and prospects. These include: the BAM Gold
Deposit; B4-7 Nickel-Copper-Cobalt-PGEs Deposit; VW Nickel-Copper Deposit (all
NI43-101 compliant); the Lamaune Gold Prospect; and the Lamaune Iron Deposit.
Within the Mining Leases, Landore has the right, subject to provisions of
certain Acts and reservations, to:
Sink shafts, excavations etc., for mining purposes:-
Construct dams, reservoirs, railways, etc., as needed; and
Erect buildings, machinery, furnaces, etc., as required and to treat ores.
OTHER PROPERTIES:
Landore has other non-core exploration properties which include grass roots
exploration and defined drill targets.
SOCIAL AND ENVIRONMENTAL RESPONSIBILITY:
Landore Resources believes that a successful project is best achieved through
maintaining close working relationships with the First Nations and other local
communities. This social ideology is at the forefront of all of the Group's
exploration initiatives by establishing and maintaining co-operative
relationships with First Nations communities, hiring local personnel and using
local contractors and suppliers.
Careful attention is given to ensure that all exploration activity is
performed in an environmentally responsible manner and abides by all relevant
mining and environmental acts. Landore takes a conscientious role in all of
its operations, and is aware of its social responsibility and its
environmental duty.
Michele Tuomi, P.Geo.
Director/VP Exploration, Landore Resources Canada Inc.
3 May 2023
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2022
Group Group
31 December 31 December
2022 2021
Notes £ £
Exploration costs 8 (2,168,828) (2,927,247)
Administrative expenses 24 (1,568,876) (1,603,957)
Operating loss (3,737,704) (4,531,204)
Other income 26 2,321,838 483,972
(Loss)/gains on investments measured at fair value 11 (444,719) 55,515
Loss before income tax (1,860,585) (3,991,717)
Income tax 7 - -
Loss for the year (1,860,585) (3,991,717)
Other comprehensive income
Items that will subsequently be reclassified to profit or loss:
Exchange differences on translating foreign operations 17 21,578 25,500
Other comprehensive income for the year net of tax 21,578 25,500
Total comprehensive loss for year (1,839,007) (3,966,217)
Loss attributable to:
Equity holders of the Company (1,859,788) (3,991,144)
Non-controlling interests (797) (573)
Total comprehensive loss attributable to:
Equity holders of the Company (1,838,210) (3,965,644)
Non-controlling interests (797) (573)
Loss per share for losses attributable to the equity holders
of the Company during the year
- basic 9 (0.02) (0.04)
- diluted 9 (0.02) (0.04)
The Group's operating loss relates to continuing operations.
The above Consolidated Statement of Comprehensive Income should be read in
conjunction with the accompanying notes set out in the full 2022 Annual
Report.
Consolidated Statement of Financial Position
As at 31 December 2022
Group Group
At At
31 December
31 December
2022 2021
Notes £ £
Assets
Non-current assets
Property, plant and equipment 10 68,432 81,059
Investments 11 169,682 287,259
238,114 368,318
Current assets
Trade and other receivables 12 110,890 75,122
Cash and cash equivalents 25 1,235,528 875,658
1,346,418 950,780
Total assets 1,584,532 1,319,098
Equity
Capital and reserves attributable to the Company's
equity holders
Share capital - nil par value 14 51,926,526 50,179,599
Share-based payment reserve 15 584,266 979,409
Accumulated deficit 16 (51,139,811) (49,692,080)
Translation reserve 17 (301,033) (322,611)
Total equity shareholders' funds 1,069,948 1,144,317
Non-controlling interests 21 (5,698) (4,901)
Total equity 1,064,250 1,139,416
Liabilities
Current liabilities
Trade and other payables 13 520,282 179,682
Current income tax liabilities 13 - -
520,282 179,682
Total liabilities 520,282 179,682
Total equity and liabilities 1,584,532 1,319,098
These consolidated financial statements were approved and authorised for issue
by the Board of Directors on 3 May 2023.
William Humphries Glenn Featherby
Director Director
The above Consolidated Statement of Financial Position should be read in
conjunction with the accompanying notes set out in the full 2022 Annual
Report.
Consolidated Statement of Changes in Equity
For the year ended 31 December 2022
Equity shareholders' funds
Share-based Accumulated Translation
Share capital Non-controlling
nil par value payment deficit reserve interest Total
£ £ £ £ £ £
Balance as at 1 January 2021 46,108,934 921,133 (45,905,940) (348,111) (4,328) 771,688
Issue of options (note 15) - 249,514 - - - 249,514
Issue of warrants (note 15) - 13,766 - - - 13,766
Issue of ordinary share capital - nil par value (note 14) - - -
4,305,931 - 4,305,931
Issue costs (note 14) (235,266) - - - - (235,266)
Options exercised (note 15) - (27,879) 27,879 - - -
Options lapsed (note 15) - (162,922) 162,922 - - -
Warrants exercised (note 15) - (14,203) 14,203 - - -
Total transactions with owners 205,004
4,070,665 58,276 - - 4,333,945
Loss for the year - - (3,991,144) - (573) (3,991,717)
Exchange difference from translating - - -
foreign operations (note 17)
25,500 - 25,500
Total comprehensive loss for the year -
- (3,991,144) 25,500 (573) (3,966,217)
Balance as at 31 December 2021 50,179,599 979,409 (49,692,080) (322,611) (4,901) 1,139,416
Balance as at 1 January 2022 50,179,599 979,409 (49,692,080) (322,611) (4,901) 1,139,416
Issue of options (note 15) - 16,914 - - - 16,914
Issue of ordinary share capital - nil par value (note 14) - - -
1,746,927 - 1,746,927
Options exercised (note 15) - (16,727) 16,727 - - -
Options lapsed (note 15) - (339,381) 339,381 - - -
Warrants exercised (note 15) - (20,664) 20,664 - - -
Warrants lapsed (note 15) - (35,285) 35,285 - - -
Total transactions with owners 412,057
1,746,927 (395,143) - - 1,763,841
Loss for the year - - (1,859,788) - (797) (1,860,585)
Exchange difference from translating - - -
foreign operations (note 17) -
21,578 21,578
Total comprehensive loss for the year - - (1,859,788) 21,578 (797) (1,839,007)
Balance as at 31 December 2022 51,926,526 584,266 (51,139,811) (301,033) (5,698) 1,064,250
The above Consolidated Statement of Changes in Equity should be read in
conjunction with the accompanying notes set out in the full 2022 Annual
Report.
Consolidated Statement of Cash Flows
For the year ended 31 December 2022
Group Group
31 December 31 December
2022 2021
Notes £ £
Cash flows from operating activities
Operating loss (3,737,705) (4,531,203)
Other income and gains 26 1,877,119 539,486
Depreciation of tangible fixed assets 10 17,323 11,634
Share options issued 15 16,914 249,514
Foreign exchange (loss)/gain on non-cash items (17,108) 23,087
Non-cash option income (309,578) (231,843)
(Increase)/decrease in trade and other receivables (32,651) 65,392
Increase/(decrease) in trade and other payables 337,888 (232,760)
Fair value loss/(gain) on financial assets 444,719 (55,515)
Non-cash other income - (34,465)
Net cash used in operating activities (1,403,079) (4,196,673)
Cash flows from investing activities
Purchase of property, plant and equipment 10 - (69,093)
Net cash used in investing activities - (69,093)
Cash flows from financing activities
Proceeds from issue of ordinary shares 14 1,746,927 4,305,931
Issue costs 14 - (221,500)
Net cash generated by financing activities 1,746,927 4,084,431
343,848 (181,335)
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year 875,658 1,052,623
Exchange gain on cash and cash equivalents 16,022 4,370
Cash and cash equivalents at the end of the year 1,235,528 875,658
The above Consolidated Statement of Cash Flows should be read in conjunction
with the accompanying notes set out in the 2022 Annual Report.
Additional Information
Publication of non-statutory accounts
The financial information for the year ended 31 December 2022 set out above
does not constitute statutory accounts.
Such information has been extracted from the Group's financial statements to
that date which carried an unqualified audit report and did not include any
reference to any matters to which the auditor drew attention by way of
emphasis.
Basis of preparation
The financial information for the year ended 31 December 2022 set out in this
announcement, has been:
compiled in accordance with EU-Adopted International Financial Reporting
Standards ("EU IFRSs"), however this announcement does not contain sufficient
information to comply with IFRSs. The EU IFRSs compliant Consolidated
Financial Statements are set out in the full Annual Report for the year ended
31 December 2022; and
prepared on the basis of the accounting policies as stated in the Annual
Report for the year ended 31 December 2022.
Going concern
The Group's business activities, together with the factors likely to affect
its future development, performance and position, are set out in the Chief
Executive Officer's Statement and the principal risks and uncertainties in the
Strategic Report in the full 2022 Annual Report. In addition, note 22 to the
consolidated financial statements includes the Group's objectives, policies
and processes for managing its capital; its financial risk management
objectives; details of its financial instruments; and its exposures to credit
risk and liquidity risk.
Due to the location of the Group's principal assets, it is well protected from
the effects of any potential COVID-19 resurgence on its operations. Whilst the
Group is exposed to any wider economic implications from any further
restrictions, the Board believes that its interests in a range of precious
metals combined with the drilling progress achieved in 2022 provide a
significant hedge to the potential exposure to any further COVID-19 impacts.
The Group's operations during 2022 were unaffected by the pandemic which has
now abated.
As at 31 December 2022, the Group had cash balances of £1,235,528. Since
the year end the Group has received C$ 750,000 in cash plus C$250,000
equivalent in shares in a TSX-V listed company in respect of scheduled option
payments towards the purchase of the Group's non-core assets.
These funds have originated as follows:
C$500,000 in respect of the Option Agreement relating to the sale of the
Lithium Claim Blocks, as announced on 6 March 2023; and
C$251,824 in respect of the Option Agreement with Lithoquest Resources Inc.
(now named Storm Exploration Inc., "Storm") in respect of the Option payment
relating to the Miminiska Lake and Keezhik property, as announced on 31
January 2023.
In addition to these amounts the Group is due to receive the following further
sums:
A cash payment of C$250,000 and a convertible cash payment of C$500,000 on or
before 24 July 2023;
A cash payment of C$500,000 and a convertible cash payment of C$750,000 on or
before 24 January 2024; and
Furthermore, a cash payment of C$500,000 is due in March 2024 in relation to
the option for the sale of the Lithium Claim Blocks.
The Group also currently holds 4,158,091 shares in Storm, a TSX-V company,
which are freely tradeable and are currently valued at approximately
C$700,000.
Whilst the Group has reported a comprehensive loss after tax for the year
ended 31 December 2022 amounting to approximately £1.9m, the above mentioned
expected further receipts together with cash balances held at the year end
means that the Board is satisfied that the Group has sufficient cash to meet
its operational requirements for a period of at least 12 months from the date
of approval of these consolidated financial statements.
The Group currently has no debt. Future development plans to continue to grow
the Group's resources can be adjusted based on the Group's ability to raise
additional funds as necessary.
The consolidated financial statements have been prepared on a going concern
basis with a reasonable expectation that the Group has adequate resources to
continue in operational existence for a period of at least 12 months from the
date of approval of these consolidated financial statements.
Availability of Annual Report
The full Annual Report for the year ended 31 December 2022, Notice of the
Annual General Meeting and Form of Proxy will shortly be made available on the
Company's website at: www.landore.com (http://www.landore.com) and posted to
shareholders.
The forthcoming Annual General Meeting of Landore Resources Limited will be
held at La Tonnelle House, Les Banques, St Sampson, Guernsey, GY1 3HS on 29
June 2023 at 11.00 a.m.
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