|"There’s a dearth of new gold projects out there and still plenty of mid-tiers and majors looking to replenish reserves. It doesn’t take a complicated analyst’s model to join up those dots."|
|"We've got a lot of people talking to us," he says. "After we finished the first round of drilling we had people calling straight away."........|
|Mr H's quotes do it for me..
Good luck all.|
|Great write up. You can buy at 3.37 it seems!|
|Very nice write up. Thanks Johnsalve.|
|5p would see it being a 10-bagger, thats impressive !!|
Landore restarts drilling with a view to delivering a resource at BAM by January
12:54 25 Oct 2016
Landore's BAM East gold discovery is shaping up well. Now the subject of renewed drilling, a maiden resource is expected early next year
Landore restarts drilling with a view to delivering a resource at BAM by January
There have been several significant gold intersections at BAM East already
“It’s a serious discovery,” says Bill Humphries of Landore Resources Limited (LON:LND).
He’s talking about the BAM East gold prospect at the company’s long-held Junior Lake property in Ontario.
Landore has been on the ground at Junior Lake for many years now and along the way has proved up nickel mineralisation in serious quantities at two separate deposits, B4-7 and the VW.
But the story of the discovery of the gold mineralisation at BAM East, just 2,000 metres to the east of B4-7 is the stuff of mining fairy tale.
At the end of last year, with the worst mining bear market in recent memory still wreaking havoc on junior miners, and with the nickel price especially hard hit, Landore getting ready to give up on the drill bit altogether, or at least for the foreseeable future.
At that stage it was one of only two junior miners still doing any drilling work at all in Ontario which, considering Ontario is one of the great mining jurisdictions in the world is quite something to consider.
But, with the nickel drilling wrapping up before Christmas, there was time for one last hole. And this one hit something different, and wholly unexpected – gold, in significant quantities.
Anyone curious about the significance of this last and apparently final drill hit need only take a look at Landore’s share price performance since then.
Late in January Landore hit a 10-year low of 0.51p. There was a little bit of upward drift through February and March as the mining markets in general showed renewed signs of life, but then in early April the shares suddenly leapt to just under 2p. That was when the company put out its first significant notification on the potential of BAM East.
Several more have followed as, needless to say, drilling wasn’t halted after all. The shares are now at 3.3p, up more than six times since that January low, and although there’s a lot of retail on the register now, there could be more to come.
Bill Humphries is under no illusions as to the significance of the discovery at BAM East. It’s not just his own long-years of experience in the mining industry, and in particular as one of the founders of Brancote Resources, the Aim market’s first great mining success stories.
It’s also that other parties are beginning to show an interest in BAM too.
“We’ve got a lot of people talking to us,” he says. “After we finished the first round of drilling we had people calling straight away.”
There are many reasons for that. The first, straightforwardly enough, are the grades and widths. The initial announcement of the gold mineralisation at BAM East was certainly a head turner: 40.75 metres at 1.82 grams per tonne gold, with two higher grade sections of 2.25 metres at 10.28 grams per tonne and 3 metres at 5.74 grams.
When drilling resumed later in the summer, Landore then hit 38.5 metres at 3.42 grams per tonne, with additional higher grade intercepts.
By early September the company was reporting multiple instances of visible gold and more lengthy intercepts as the outcome of the summer campaign.
Winter drilling is just getting underway now, and already the project has advanced to the stage where Humphries is talking about putting out a resource in January.
“At that point I’m confident we will be in a position to do a pre-feasibility study,” he says.
“It’s such a simple occurrence. This will be very easy to fast-track, because we’ve done all the work we need to move forward for the nickel lease. We’ve got permits to construct and we’ve got very supportive First Nations. We’ve done water studies, we’ve done wildlife, fishing – all of those.”
What’s more, when the nickel price finally does move off its current 25-year lows, the economies of scale will suddenly become plain for both projects.
“It’s the same sort of system,” says Humphries. “The crushing and milling side of things will be the same. And we’ll move on the nickel the moment the price moves up, and it doesn’t have to move up that far.”
No doubt about it though, the gold has been transformational for Junior Lake, and for Landore.
There’s a dearth of new gold projects out there and still plenty of mid-tiers and majors looking to replenish reserves. It doesn’t take a complicated analyst’s model to join up those dots.|
|Landore Resources CEO Bill Huphries will be presenting to investors on the evening of 3rd November at the Proactive One2One Mining forum at the Chesterfield Mayfair Hotel. For details and registration, please click here: http://tinyurl.com/hs7pd8p|
|Still listed for Proactive in a couple of weeks, that should help with investor interest.|
|Trading volume pathetic.|
|seems bit off radar at the moment|
|Landore Resources sees more potential at BAM East as drilling restarts
The BAM East prospect is rapidly developing into a significant new gold discovery, Landore Resources Ltd (LON:LND) told investors, as it started drilling again at the Ontario site.
The work will comprise 17 diamond drill holes to expand the newly defined central zone down-dip and along strike and to test prospective targets along the remaining 2.7 km MM-7 geophysical trend.
Significantly, the first two holes completed hit the same lithology as the higher holes with visible gold sighted.
Work shows the central zone plunging to the west with the width and gold content improving at depth, the firm said.
Meanwhile, sampling 700 metres to the west and along trend to the central zone, has intersected the same lithology with gold mineralisation up to 0.66 grams per tonne (g/t).
In April this year, Landore confirmed the zone as a "significant discovery"
It has said the style of mineralisation has many corollaries with similar commercial gold deposits in the Canadian Shield, such as Kirkland Lake, Hollinger-McIntyre, Kerr-Adison and Sigma-Lamarque.
Landore chief executive Bill Humphries said: "The BAM East Gold Prospect is rapidly developing into a significant new gold discovery for Landore Resources, enjoying very low discovery costs per ounce, favourable mineralogy potentially providing a simple processing path with maximum recoveries and low capex/opex costs."
|For years and years they have been drilling holes and nothing has come of it.I just wonder whether it will be different this time.Do we have an end game coming up?!|
|Perhaps the strategy is to drill so many holes that the place resembles a geological swiss cheese and there's that many holes, all they have to do is stamp on the ground and presto! Instant mine...|
|How much more drilling do they have to do with more encouraging results before they have a green light for a mine?|
|Sampling of trench located 700m to the west and along trend... has intersected the same lithology with gold mineralisation up to 0.66 grams/tonne (g/t).
In addition, hole drilled approximately 60m down dip to Trench 0416-01 has also intersected the same lithology ..... potentially extending the BAM East Gold Prospect to 1100 metres along strike
This does seem quite a large gold deposit, and grades look very good, extraction appears easy so cost of production should be very low.|
|Strike length now 1100m and grades better at depth. VERY encouraging.|
|RNS out, seems like there's more gold.|
|all quiet today|
|These impending results will be pivotal for the future of the company.The stakes have never been higher,and if really good do we have the makings of a gold mine?|
|with drilling ongoing for past 2 weeks, by 3/11 the company will be able to update on just how large this gold is, should be clear of 6p this time round|
|Something must be wrong - all my shares are up this morning!|
|I would expect newsflow leading up to the Proactive Landore Presentation in London on 3rd November.|
|On our way back up... guess there's news in the offing some time soon.|