Landore Resources Limited Update on BAM East Gold Prospect (7672U)

TIDMLND

RNS Number : 7672U

Landore Resources Limited

23 January 2017

LANDORE RESOURCES LIMITED

(AIM Ticker: LND.L)

PRELIMINARY METALLURGICAL ASSESSMENT

BAM EAST GOLD PROSPECT

JUNIOR LAKE PROPERTY

London, United Kingdom - January 23rd 2017 - Landore Resources Limited (AIM:LND) ("Landore Resources" or "the Company") is pleased to provide results of the Preliminary Metallurgical Assessment of the BAM East Gold prospect mineralization on its Junior Lake Property, Ontario, Canada ("BAM East Gold Prospect").

Preliminary Assessment of Metallurgical Composites from the BAM East Gold Prospect: Drill core material, in the form of two composites of 28 samples weighing a total of 67 kilograms, was submitted to ALS Metallurgy, Kamloops of British Columbia for Gravity Concentration and Cyanidation Bottle Roll leach testing on the gravity tails.

Highlights:

-- Combined gold recovery by gravity concentration followed by cyanidation leach extraction of the gravity tail averaged about 98 percent for both composites tested.

-- Gravity Concentration: Feed gold recovery to the pan concentrate ranged between 58 and 59 percent for Composite 1 and Composite 2. Between 0.02 and 0.03 percent of the feed mass was recovered to the pan concentrates grading between 3,687 and 6,977 grams/tonne gold.

-- Gold leach kinetics recorded for all tests at a nominal primary grind sizing of 75um K(80) were rapid, with close to peak gold extraction measured in the first sampling interval at 6 hours.

Commenting on this report, Chief Executive Officer of Landore Resources, Bill Humphries, said:

"These outstanding results, showing 98% recovery of gold using a simple combined gravity/leaching process, further supports our expectations that the exciting BAM East Gold deposit has the strong potential of low capex/opex costs amongst the lowest quartile of gold mining producers.

Metallurgical Testing:

The preliminary assessment was designed to assess the metallurgical response of the mineralised samples from the BAM East Gold deposit and to provide a determination of the gold feed grade. The two composites were assessed for the following:

   --     Chemical characteristics of the feed. 
   --     Potential for gravity recovery of gold from Composite 1 and Composite 2. 
   --     Cyanidation leach response of the gravity tails for the two composites. 

The two representative composites were selected using crushed half drill core from two previously reported intersections within the Central Zone consisting of:

Composite 1: Line 2600E, Drill-hole 0416-525 (NQ diamond core) from 65 metres depth, intersection reporting 1.90grams/tonne (g/t) gold over 9.0m. There was no recorded visible gold (VG) and the highest grade was 6.38g/t over one metre.

Total weight of Composite 1 was approximately 15 kilograms.

Composite 2: Line 2400E, Drill-hole 0416-547 (HQ diamond core) from 217.25 metres depth, intersection reporting 2.32g/t gold over 16.68 metres. There were 6 recorded sightings of VG and the highest grade was 17.35g/t over one metre.

Total weight of Composite 2 was approximately 52 Kilograms.

Overall Gravity and Leach Results

 
                                                        Leach Gold                             Overall results 
                                                        Extraction 
                                                        -percent 
----------  ----------------  --------------------  -------------------  --------------------------------------------- 
                                    Gravity Gold                               Overall Gold      Calc. Gold Feed Grade 
             Pan Con Gold            Recovery -                                Extraction -       to Gravity - g/tonne 
 Composite    Grade, g/tonne          percent                                    percent 
----------  ----------------  --------------------  -------------------  -------------------  ------------------------ 
        1             3687                 57.5                96.9                   98.7                     2.03 
        2             6977                 58.8                 94.7                  97.8                     2.02 
----------  ----------------  --------------------  -------------------  -------------------  ------------------------ 
 

Extract from Final report:

Conclusions and Recommendations:

Metallurgical testing with Composite 1 and Composite 2 was performed at a nominal primary grind sizing of 75um K(80) . The entire mass remaining of each Composite, about 12 kilograms for Composite 1 and 45 kilograms for Composite 2, were introduced to the Knelson concentrator.

Gravity separation test work results indicated that the two composites were amenable to gravity separation. Gold recovery by Knelson gravity separation followed by hand panning of the Knelson concentrates ranged between 58 and 59 percent free gold. High grade pan concentrates grading 3,687 and 6,977 g/tonne gold were measured for Composite 1 and Composite 2, respectively.

Between 98 and 99 percent of the free gold was recovered through combined gravity concentration and cyanidation leaching of gravity tails for the two composites tested. Gold leach kinetics were fast, with most of the gold extraction taking place within the first six hours. Sodium cyanide and lime consumption averaged about 0.1 and 0.3 kg/tonne, respectively. Gold head grades were calculated at 2.0 g/tonne for both composites based on the combined gravity and cyanidation leach test results.

Further gravity and cyanidation leach testing at coarser primary grind sizing is recommended to determine whether similar gold recovery can be achieved with lower comminution energy requirements. Further testing of other zones within the deposit is also recommended.

End of Extract

The full report with results has been posted on Landore's Web site <www.landore.com>

Planned Works:

Further extensive metallurgical testing for inclusion into Pre-Feasibility study to be completed by Q3.

Michele Tuomi, (P.Geo., BSc. Geology), Director/VP Exploration of Landore Resources Canada Inc. and a Qualified Person as defined in the Canadian National Instrument 43-101, has reviewed and verified all scientific or technical mining disclosure contained in this announcement.

- ENDS -

About Landore Resources

Landore Resources is an exploration company that seeks to grow shareholder value through the acquisition, exploration and development of precious and base metal projects in eastern Canada. The Company is primarily focused on the development of the Junior Lake Project. Landore Resources has mineral rights to 5 properties in eastern Canada. The Company is headquartered in Guernsey, with an exploration office located in Thunder Bay, Ontario, Canada.

For more information, please contact:

   Bill Humphries, Chief Executive Officer         Tel: [phone] 
   Richard Prickett, Finance Director                  Tel: [phone] 
   Landore Resources Limited                            www.landore.com 
   James Spinney / Jack Botros                          Tel: [phone] 

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Nominated Advisor and Broker

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This information is provided by RNS

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January 23, 2017 02:00 ET (07:00 GMT)