Landore Resources Limited Regulatory News (LND)

12 Oct 2005 07:00

Landore Resources Limited12 October 2005 12 October 2005 LANDORE RESOURCES LIMITED DRILLING JUNIOR LAKE AND LAMAUNE LAKE SIGNIFICANT NICKEL DISCOVERY A significant Nickel discovery has been confirmed by drilling at Ketchikan Laketoward the southeastern end of the Junior Lake property, Ontario Canada. Drilling Results from Junior Lake Property Drilling intersected a 150 metre wide shear-zone, designated the 'VW Zone',hosting five nickel dominant mineralized horizons varying in apparent thicknessfrom 4 to 21 metres with nickel values of up to 0.95%. Mineralized intersections within the shear-zone include Drill-hole From Width Nickel Copper No Metres Metres % % 0405-35 28.9 16.1 0.30 0.06 Includes 3.0 0.68 0.08 0406-36 36.0 7.5 0.21 0.05 And 90.0 18.0 0.22 0.02 0406-37 31.5 26.5 0.31 0.06 Includes 4.5 0.80 0.08 And 63.0 4.5 0.27 0.09 And 75.0 7.5 0.44 0.05 Includes 1.5 0.95 0.03 (All holes were inclined at -45degrees) Consultant's Opinion Following a property visit and review of drill core from the Ketchikan area,Geological Consultant Dr. J Mungall from Toronto University commented thatfurther work should be directed on the Ketchikan occurrence ('VW' zone),indicating that the occurrence "has the appearance of a deformed, peripheralportion of a better mineralized komatiite-hosted system nearby." Hisrecommendations include additional prospecting and sampling along the strikeextension of the known occurrence and drilling the known structure where highconductance anomalies are evident. Characteristics of Junior Lake Property Exploration work over the last several years has indicated that the contiguousJunior Lake - Lamaune Lake properties have excellent potential to host anickel-copper-platinum group elements (Ni-Cu-PGE) massive sulphide deposit ofthe Noril'sk-Talnakh/Voiseys Bay type and/or a nickel (Ni) dominant komatiitehosted massive sulphide deposit of the Kambalda-type as well as the potential tohost shear zone related lode gold deposits. The Junior Lake property (100%) is located in the province of Ontario,approximately 235 kilometres north-northeast of Thunder Bay and is situatedwithin the Caribou-O-Sullivan Greenstone Belt in the Wabigoon Subprovince. TheKetchikan Lake discovery is approximately 20 kilometres from the Auden siding onthe Trans Canada railway. The drill campaign completed on the Junior Lake property in June of this yearconsisted of 13 diamond drill NQ holes (0405-25 to 0405-37), for 1,707 metres,on five separate target areas including the 3-hole fence on the "VW zone" atKetchikan Lake. Two other areas drilled, the "New" and the "PQ" zones, returned significantresults with values up to 1.2% copper and 0.2 % nickel in sub-metre to metreintervals within mineralised zones exceeding 80 metres wide. The "VW zone" is situated in the Carrot Top sequence, a laterally extensivecomplex 300 to 600 metres thick, of mafic metavolcanic flows, ultramaficschists, clastic and chemical metasedimentary rocks, which has a known strikelength of approximately 14 kilometres and is host to several Ni-PGE, Cr, andZn-Cu occurrences. The 5 mineralized horizons in the "VW zone" appear to be sub vertical tonortherly dipping and are hosted in a sheared sequence of ultramafic and maficvolcanics with minor poorly defined magnetite iron formation. Mineralizationconsists of pyrrhotite-pentlandite and minor chalcopyrite in breccia andfracture filler with lesser net-textured, disseminated, laminated and veinedsulphides. Further Drilling Following the highly encouraging results from this drilling campaign, 3000 to3500 metres of additional drilling is planned to start mid October to furtherevaluate the 'VW' zone in the Ketchikan Lake area and strike extensions of themineralized structure focusing on areas where high conductance anomalies areevident, as recommended by Dr J. Mungall. A few holes will be reserved to testAeroTEM airborne anomaly picks not yet drilled. Landore is fully funded for thenew drilling programme. In addition, 9 claims, totalling 1,184 hectares, have been staked along thesouthern boundary of the Junior Lake and Lamoune Lake properties, plus 2 claims,totalling 352 hectares, at the east end of the property have been acquired fromprospectors to ensure complete coverage of the known Carrot Top sequence. TheJunior Lake property now comprises 34 claims totalling 5,637 hectares. The Junior Lake property already hosts a Ni-Cu-PGE massive sulphide deposit('B4-7' zone of 2.3 million tons at 0.87%Ni and 0.58%Cu, International MogulMines, 1969). Landore has completed two confirmation and up-dip extensiondrilling campaigns in 2001 and 2003. Until recently this deposit has beenconsidered sub-economic due to its size. However the substantial increase in metal prices over the last two years,particularly nickel and copper, together with the nearby Ketchikan Lakediscovery, has provided sufficient encouragement for management to commission aredefinition of the B4-7 zone to an acceptable standard in readiness forpossible development studies. Drilling Results from Lamaune Lake Property The Lamaune Lake property (51%) abuts the Junior Lake property to the west andcomprises 8 claims, totalling 1,616 hectares. The drill campaign completed on the Lamaune Lake property in May/June of thisyear consisted of 17 diamond drill NQ holes (1105-01 to 1105-17) totalling 2,599metres, on four separate target areas. The main target area drilled, designated the 'Carrot Top Zone' is also withinthe Carrot Top sequence, approximately 11 kilometres along strike and to thenorth west of the Ketchikan lake discovery, in an area previously sampled byLandore in 2003 returning encouraging values of 0.33% Ni, 0.34% Cu, 200 ppmcobalt, 1,200 ppb palladium and 260 ppb platinum. 11 holes were drilled to testthis target with the remaining 6 testing three AeroTEM airborne anomaly picks. Drilling at the Carrot Top zone has been most successful having intersectedseveral zones of nickel-copper mineralization with elevated cobalt and palladiumvalues. Mineralized intersections within the Carrot Top zone include Drill-hole From Width Nickel Copper No Metres Metres % % 1105-01 52.7 11.3 0.25 0.19 Includes 1.1 0.34 0.64 1105.02 186.5 11.5 0.11 0.07 1105.08 42.6 35.6 0.11 0.06 Includes 1.5 0.45 0.20 1105.09 49.9 0.7 0.25 0.70 Drill holes intersected variably altered and brecciated ultramafic rocks, maficvolcanics, leuco and melagabbro, iron rich sediments and magnetite ironformation. Sulphide mineralization is typically dominated by pyrrhotite andlesser chalcopyrite as fracture filler, breccia matrix, disseminations and blebshosted in altered ultramafic schists and melagabbro. Following completion of the recent drilling campaign Landore, had met allrequirements to fulfill the first stage of the option agreement to earn 51% ofthe Lamaune property. The transfer of title, to the 8 claims, to LandoreResources Canada Inc. was confirmed October 3, 2005. Commenting on this drilling report, Chairman of Landore Resources, BillHumphries, said: "While there is considerably more work to be done before we see a fully provennickel resource on the Junior Lake property, these results are very encouragingand continue to provide evidence that it might contain a major mineable reserve.We will update the market again once the next phase of the drilling has beencompleted." END For more information please contact: Bill Humphries, Chairman Tel: 07734 681262 Richard Prickett, Chief Executive Tel: 07775 651421Landore Resources Limited Simon RaggettStrand Partners Limited Tel: 020 7409 3494 David Bick Tel: 07831 381201 Note to Editors: Landore Resources Limited (LND.L) was admitted to the Alternative InvestmentMarket (AIM) in April 2005 and raised £2m gross in a Placing. The Company hasbeen established to explore for and develop precious and base metal propertiesin North America. The Company's exploration properties are located in Ontario,Quebec and New Brunswick, Canada, and Nevada in the US. The principal of theseare currently Junior Lake and Miminska Lake in the Thunder Bay mining districtin Ontario. The management of the company is led by the Chairman, Bill Humphries, and ChiefExecutive, Richard Prickett, who were formerly Managing Director and Chairmanrespectively of Brancote Holdings, a gold exploration company that had a marketcapitalization on AIM equivalent to US$3m in 1998 and was sold in 2002 forUS$368m. This information is provided by RNS The company news service from the London Stock Exchange