Landore drills more Bam gold at Junior Lake

Visible gold in hole 0421-785 from the Bam project: Credit: Landore Resources.

Targeted drilling has cut more high grade gold at the Bam gold deposit, part of Landore Resources’ (AIM: LND) Junior Lake property, 235 km northeast of Thunder Bay, Ont. The results confirmed wide, shallow zones of gold mineralization within the gabbro hanging wall unit of the extended east pit.

Highlights of the results include the following:

  • Hole 0421-793: 40 metres grading 0.58 g/t gold, including 1 metre at 5.57 g/t and 15.1 metres grading 1.75 g/t gold, including 0.6 metre at 29.4 g/t;
  • Hole 0421-794: 13.9 metres at 0.76 g/t gold, including 3.7 metres at 3.83 g/t;
  • Hole 421-795: 8 metres grading 0.91 g/t gold and 11.6 metres grading 0.55 g/t gold;
  • Hole 421-796: 18.5 metres grading 0.87 g/t gold, including 10.2 metres at 1.14 g/t; and
  • Hole 421-797: 16.1 metres grading 0.7 g/t gold and 10.1 metres grading 1.28 g/t gold, including 0.9 metre at 8.2 g/t.

The 2020-21 drilling program consists of 23,000 metres of HQ core drilling. The resource estimate will be updated when the program is completed.

In January 2020, Landore announced the results of a preliminary economic assessment for the Bam project. The base case projected a mine life of 6.25 years, during which time 12.7 million tonnes of ore grading 1.26 g/t gold would be mined. With a recovery rate of 95%, the deposit would produce 488,982 oz. of gold.

Using a gold price of US$1,500 per oz., Bam was given an after-tax net present value of US$124.9 million and an after-tax internal rate of return of 35.5%. Gold would be produced at an all-in sustaining cost of US$806 per oz. The project would have a 3.5-year payback period after an initial capex of US$93.8 million.

Landore’s Junior Lake property, also hosts the B4-7 nickel-copper-cobalt PGM deposit, the VW nickel-copper-cobalt deposit, the Lamaune gold prospect, and other base and precious metals occurrences.

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