Landore Resources Limited: Interim Results for the Six Months Ended 30 June 2021
21 September 2021
Landore Resources Limited (AIM:LND) is pleased to announce its interim results for the six months ended 30 June 2021.
For more information, please contact:
Landore Resources Limited
Bill Humphries, Chief Executive Officer
Tel: 07734 681262
Glenn Featherby, Finance Director
Tel: 07730 420318
Cenkos Securities plc (Nominated Adviser and Broker)
Derrick Lee / Pete Lynch
Tel: 0131 220 9771
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE SIX MONTHS ENDED 30 JUNE 2021
The following discussion of performance, financial condition and future prospects should be read in conjunction with the interim consolidated financial statements of Landore Resources Limited (“Landore Resources” or the “Company”) and its subsidiaries (together, “the Group”) and notes thereto for the period from 1 January 2021 to 30 June 2021. All amounts are stated in sterling.
Landore Resources is admitted to trading on the AIM market operated by the London Stock Exchange plc, with the trading symbol LND.L. The Company is based in Guernsey in the Channel Islands and its 100 per cent owned operating subsidiary, Landore Resources Canada Inc. (“Landore Canada”), is engaged in the exploration and development of a portfolio of precious and base metal properties in North America.
The financial results for the six months to 30 June 2021 show a loss of £2,422,042 (30 June 2020: loss of £695,406). Exploration costs were £1,641,662 (30 June 2020: £102,750).
In February 2021 the Group raised £3.5 million by the issuance of shares at a price of 30p. The fundraising received good support from new and existing investors. This will allow the continued development of the identified BAM Gold Resource and the completion of a further exploration programme along strike.
The Group’s cash at bank at 30 June 2021 was £2,311,829 and the Group has no debt. The Group has sufficient funding to complete the current drilling and exploration programme and to meet Group working capital requirements to the end of June 2022.
The Junior Lake Property:
The Junior Lake property, 100 per cent owned by Landore Canada, is located in the province of Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay and is host to the recently discovered BAM Gold Deposit, the B4-7 Nickel-Copper-Cobalt-PGEs deposit and the adjacent Alpha PGEs zone. Junior Lake also contains the VW Nickel deposit and numerous other highly prospective mineral occurrences.
BAM Gold Deposit:
Mineral Resource Estimate (MRE) of 31,083,000 tonnes (t) at 1.02 grams/tonne (g/t) for 1,015,000 ounces of gold including 21,930,000t at 1.06g/t for 747,000 ounces gold in the Indicated Category (as reported by the Group on 7th January 2020).
The BAM Gold Deposit extends for 3,700 metres from 400E to 4100E and remains open down dip and along strike to the east and the west. In addition, the soil sampling completed in 2019-20 has identified widespread gold mineralisation along strike to the west for a further 7 kilometres, supporting the extension of resource drilling from the BAM Gold Deposit.
A drilling programme, consisting of a total of 23,000 metres of HQ diamond core drilling, commenced on 15 October 2020 designed to further infill and extend the defined BAM Gold Deposit resource of 1,015,000 ounces. As of 9 September 2021, a total of 21,933 metres of drilling, comprising 94 drill holes (0420-725 to 0421-818), has been completed to deepen and extend the East and West pits, as well as to conduct exploration along strike to the east and west of the defined deposit.
The drilling activities on the BAM Gold Deposit and immediate exploration to the east and west concluded on 1 August 2021 and the final assay results are anticipated to be received and collated by the end of September. The data will then be forwarded to the Group’s independent engineers Cube Consulting of Perth Western Australia, to complete a Mineral Resource Estimate (“MRE”) and Preliminary Economic Assessment (“PEA”) update on the BAM Gold Deposit scheduled for completion in Q4 2021.
Drilling will re-commence in mid-October at the highly prospective Felix area along strike and to the west of the BAM Gold Deposit.
The continued rapid progress at the BAM Gold Deposit, together with the possible future development of the other known gold prospects along this highly prospective 31 kilometre long Archean greenstone belt, bodes well for the future of the Junior Lake Property hosting a multi-million ounce gold deposit.
The growing adoption of electric vehicles (EVs) is driving the increasing demand for nickel, cobalt and lithium (“Battery Metals”) – which are each critical metals used as cathode materials for lithium-ion batteries in the automotive industry, as well as the energy and electronics industries.
In addition to advancing the BAM Gold Deposit on which the Group remains focused, the Group is encouraged by the increased demand for Battery Metals as the Group’s highly prospective Junior Lake property is host to significant Battery Metals resources and prospects delineated by Landore prior to the discovery of BAM Gold. These resources are compliant to Canadian National Instrument 43-101 (NI43-101).
· B4-7 Nickel-Copper-Cobalt-PGE Deposit and Alpha Zone: 3,292,000 tonnes at 1.20% Nickel Equivalent (NiEq) in the Indicated category and 568,000 tonnes at 1.26% NiEq in the Inferred category for a total of 46,661 tonnes of contained metal.
· VW Nickel-Copper-Cobalt Deposit: 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.
The Junior Lake Nickel is the highly sought-after Grade 1 sulphide Nickel suitable for Battery Metals.
The Miminiska Lake and Keezhik Lake Properties:
The Group granted an option (reported 10 May 2021) to Lithoquest Resources Inc. (TSX.V – LDI) (Lithoquest) pursuant to which Lithoquest can elect to purchase the Group’s 100% interest in the Miminiska Lake and Keezhik Lake properties in the Thunder Bay Mining district, Northern Ontario (together, the “Property”).
Under the terms of the Option agreement, Lithoquest can acquire a 100% interest in the Property by making staged payments to the Group totalling CAN$1,375,000 in cash (“Cash Payment”) and an additional CAN$2,625,000 either in cash or by issuing Landore with new common shares in Lithoquest (“Convertible Cash Payment”), subject to the terms and schedule of the Option Agreement.
The Miminiska Lake property covers an area of 5,494 hectares and is located approximately 130 kilometres to the north of the Junior Lake property and 115 kilometres to the east of the Pickle Lake mining camp.
The Keezhik Lake property is located 20 kilometres north of the Group’s Miminiska Lake property and 150 kilometres southeast of Goldcorp’s Musselwhite Gold mine.
West Graham Property:
The Group disposed of its 30% interest in the West Graham Property (reported 8 April 2021) to SPC Nickel Corp. (TSX.V – SPC). As a result of the Disposal, the Group no longer has an interest in West Graham.
Following Completion of the Disposal, the Group has received:
· CAN$250,000 in cash;
· 1,000,000 warrants in SPC Nickel Corp., with each warrant convertible to one common share in SPC Nickel Corp. at a price of CAN$0.25 within a period of one year from December 7, 2020; and
· A 1% net smelter return royalty on West Graham.
West Graham is a Ni Cu property, consisting of 1 patented claim, located in the Sudbury Mining District of Ontario, Canada.
The spread of a novel strain of coronavirus (“COVID-19”) and measures taken to contain the spread of the virus caused significant disruption to Landore’s exploration activities during the first half of 2020. By mid-2020 the Company resumed Canadian operations, and since then has successfully operated in accordance with Government COVID-19 guidelines.
Social and environmental responsibility:
The Group believes that a successful project is best achieved through maintaining a close working relationship with First Nations and other local communities. This social ideology is at the forefront of the Group’s exploration initiatives and the Company seeks to establish and maintain co-operative relationships with First Nations communities, hiring local personnel and using local contractors and suppliers where possible. 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 towards its operations, and is aware of its social responsibility and its environmental duty.
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