Landore completes technical report on BAM gold deposit in Ontario

Landore Resources (AIM: LND) has completed an NI 43-101 technical report and preliminary economic assessment (PEA) on the BAM gold project, part of its 100% owned Junior Lake property in Ontario. The PEA follows up on an updated mineral resource for the BAM deposit earlier this year.

As outlined in the resource update, the BAM deposit contains 49.2 million tonnes grading 1.0 g/t gold, for roughly 1.5 million oz. This includes 30.97 million tonnes of indicated material at 1.0 g/t, for 1.03 million oz. of gold. The resource estimate assumes a gold cut-off grade of 0.3 g/t.

The project's technical report considers the economics of exploiting resources inside optimized pit shells of 22.4 million tonnes at 1.16 g/t containing 833,000 oz. gold using a long term gold price of US$1,800/oz. The PEA assumes the construction of a 2.2 million t/y processing plant over a year, followed by a production period of 10.5 years. Overall, the BAM gold project would generate a post-tax net present value of US$231.2 million and internal rate of return of 66.7%, for an after-tax simple payback of 1.25 years from the start of production.

"This preliminary economic assessment, combined with the 50% resource increase reported in February 2022, reaffirms the 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-km potential strike length," Landore CEO Bill Humphries commented.

According to Humphries, over half of the gold resources delineated to date are extractable by cost-effective open pit mining. "This, coupled with the 98% recovery achieved by conventional milling, demonstrates the BAM deposit's potential for low capex costs and economical mining operation," he said, adding that the Junior Lake property has the potential to host multi-million-ounce gold resources.

Junior Lake is located 235 km north-northeast of Thunder Bay and hosts several exploration targets within a 33,000-hectare land package. In addition to the BAM gold deposit (the main focus of exploration) there is also the B4-7 nickel-copper-cobalt-platinum-palladium-gold deposit, the VW nickel-copper-cobalt deposit and the Lamaune gold prospect.

In light of the significance of gold and battery metals deposits located on the Junior Lake property, Landore is now progressing with a strategic review of its Canadian subsidiary and its assets. Options being considered include the sale of all or a part of its wholly owned subsidiary, Landore Resources Canada, or the Junior Lake project; potential joint venture arrangements or strategic partnerships; or a combination thereof.

More information on Landore's projects is contained in the corporate presentation posted on www.Landore.com.