Landore Resources Limited Regulatory News (LND)

4 Sep 2009 09:36



LANDORE RESOURCES LIMITED

("Landore" or "the Company")

INTERIM STATEMENT

For the six months ended 30 June 2009

MANAGEMENT DISCUSSION AND ANALYSIS

FOR THE SIX MONTHS ENDED 30 JUNE 2009

General

The following discussion of performance, financial condition and future prospects should be read in conjunction with the interim consolidated financial statements of the Company and notes thereto for the period from 1 January 2009 to 30 June 2009. All amounts are stated in sterling.

Overview

Landore Resources Limited is listed on the Alternative Investment Market in London, with the trading symbol of LND.L. The Company is based in Guernsey in the Channel Islands and its operating subsidiary, Landore Resources Canada Inc, is engaged in the exploration and development of a portfolio of precious and base metal properties in North America.

Results of Operations

The financial results for the six months to 30 June 2009 show a loss of £2,007,066 (2008: loss of £2,439,942). These results are in line with expectations. During the six month period exploration costs were £1,391,039 and administrative expenses were £627,003, it should be noted that an amount of £22,827 (2008: £217,276) for share based payments and £39,897 (2008:£157,015) for exchange losses were included within administrative expenses.

During the period under review £53,550 was raised as a result of 850,000 share options being exercised , there were no other fund raisings carried out in the first half of the year. It is anticipated that in order to continue further exploration activities a fundraising will be required in the fourth quarter of 2009.

Mineral Exploration Activities

The Group's exploration activities have been almost entirely focused on the Junior Lake project. In addition, exploration continues on the West Graham property by our joint venture partner, First Nickel Inc.

The Junior Lake property

The Junior Lake property, 100% owned by Landore, is located in the province of Ontario, Canada, approximately 235 kilometres  north-northeast of Thunder Bay and is host to; the VW Nickel deposit, the B4-7 deposit, the Lamaune Iron deposit, the BAM zone gold occurrence and numerous other highly prospective mineral occurrences.

Lamaune Iron Deposit

In October 2008, Landore reported that exploration, including geophysical surveys, trenching and drilling, had confirmed the presence of a large magnetite iron deposit at the western end of the Junior Lake property.

The Lamaune Iron Deposit is just 11 kilometres from the Canadian National Railway providing direct access to the Port of Thunder Bay on Lake Superior. The port still has much of the infrastructure used by Steep Rock Iron Mines to ship iron ore to the iron mills of North America.

In addition the iron deposit has abundant water resources nearby and is just 20 kilometres from the planned Hydropower on the Little Jackfish River.

The positive results of the exploration, together with the potential access to excellent infrastructure in the vicinity, were sufficiently encouraging for Landore to advance the Lamaune Iron deposit towards resource status.

In February 2009, a helicopter-borne 'Impulse' geophysical survey was completed along a 12 kilometre trend over the western part of the Junior Lake property, which included the Lamaune Iron Deposit area and possible extensions to the east and west. In all, 724 line kilometres were completed at 50 metre spacing.

The 'Impulse' geophysical survey was selected to more clearly define the anomalies identified in the previous ground and air-borne magnetic surveys and to identify anomalies in the newly acquired western extension of the Junior Lake property.

The survey has proven highly successful in the identification of magnetite rich anomalies.

A second campaign, consisting of 16 trenches for 1,135 metres excavated and 22 drill-holes for a total of 4,648 metres of drilling, has now been completed. The trenches and drill-holes were planned to give even coverage along approximately 5 kilometres of the central part of the trend. Assay and metallurgical results are pending.

B4-7 Deposit

In May of 2008, Landore reported an inferred resource estimate for the B4-7 Deposit of 4,650,000 tonnes at 0.55% Nickel Equivalent (NiEq) (nickel plus copper-cobalt-PGE credits) at a 0.3% Ni cutoff. The resource estimate was independently prepared to Australasian Joint Ore Reserves Committee (JORC) Code (2004) compliance by Snowden Mining Industry Consultants, Perth, Australia

An infill drill programme, consisting of 42 NQ size holes for a total of 8,764 metres, has recently been completed on the B4-7 Deposit. The programme was designed to provide sufficient information and drill density to advance the deposit to indicated status. Additional metallurgical testing will be completed using core from the present program.

The drilling has confirmed that the deposit has near surface wide zones of nickel mineralization. The deposit also remains open along strike and down plunge to the north-west.

Landore has appointed Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA), consulting and engineering group from Toronto, Canada, to prepare a Canadian National Instrument 43-101 (NI43-101) compliant resource estimate upgrade on the B4-7 deposit.

The drill campaign has shown that the B4-7 deposit remains open to the west along strike and down plunge to the north-west. A previously completed airborne electromagnetic survey suggests the conductive horizon hosting the B4-7 deposit persists for an additional 500 metres to the west.

Details of drilling results and intersections have been shown in recent press releases which can be viewed on the website www.landore.com

Junior Lake exploration

An exploration drilling campaign, consisting of 8 holes for a total of 1,500 metres of drilling has recently commenced on the highly prospective area between the VW Nickel deposit and the B4-7 deposit.

West Graham/First Nickel Option - Nickel

The West Graham property consists of one patented lot owned outright by Landore of 130 hectares, located in Northern Ontario, 17 kilometres from Sudbury on the southern rim of the Sudbury Intrusive Complex and contains the historic "Conwest deposit".

First Nickel Inc. entered into an option agreement in November 2005 with Landore to acquire 70 per cent. Interest in the West Graham property, which is strategically located immediately to the south of the East Zone of First Nickel's Lockerby Mine. The agreement provides for First Nickel to make cash payments to Landore of C$150,000 and carry out exploration and development expenditures of C$6 million over a four-year period.

First Nickel announced in February 2009 the initial mineral resource estimate for the West Graham property, Conwest Zone is located approximately 1.5 kilometres to the east of the 2# head-frame of First Nickel's Lockerby Mine.

The Conwest Zone is near surface and contains in excess of 84 million pounds of nickel and 58 million pounds of copper within the in-situ Indicated Resource category. First Nickel is in the process of completing bench scale, metallurgical tests on the Conwest Zone and is investigating alternative processing and treatment options. Exploration will continue on the West Graham property in 2009, targeting the footwall lithologies to the south of the Conwest Zone.

For further information on Landore and its projects please visit the Company's website www.landore.com and please direct any enquiries to:

Bill Humphries, Chairman

Richard Prickett, Chief Executive

Landore Resources Limited

Tel: 07734 681262 

Tel: 07775 651421 

www.landore.com

Simon Raggett/Angela Peace

Strand Partners Limited

Tel: 020 7409 3494

David Bick

Tel: 07831 381201

Accounting Policies

The Company has adopted accounting policies which are in line with International Financial Reporting Standards. A full set of these policies were included in the financial statements to 31 December 2008.

Use of Financial Instruments

The Company has not entered into any specialised financial agreements to minimise its investment risk, currency risk or commodity risk. There are no off-balance sheet arrangements. The principal financial instruments affecting the Company's financial condition and results of operations are currently its cash and short-term money market investments.

Forward Looking Statements

The above contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in world gold markets, equity markets, costs and supply of material relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.

UNAUDITED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2009

The Group's operating loss relates to continuing operations.

  UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2009

  UNAUDITED CONSOLIDATED BALANCE SHEET

AS AT SIX MONTHS ENDED 30 JUNE 2009

  UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2009

  NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2009

ACCOUNTING POLICIES

1. Basis of accounting

The financial statements have been prepared in accordance with those International Financial Reporting Standards ("IFRS") and International Financial Reporting Interpretations Committee ("IFRIC") interpretations issued and effective or issued and early adopted as at the time of preparing these financial statements (August 2009).

The financial statements have not been audited and have been prepared on the historical cost basis. The principal accounting policies adopted are consistent with those adopted in the annual accounts to 31 December 2008.

2. Exploration expenditure and mineral properties

Mineral properties at 30 June 2009 represent accumulated costs to date incurred by Landore Resources Canada Inc., a subsidiary of Landore Resources Limited. On acquisition of Landore Resources Canada Inc. on 5 April 2006 the fair value of those costs incurred to date was considered to be £Nil. All subsequent expenditure in the period has been charged to the income statement in accordance with the group accounting policy.

 3. Loss per share

The loss per share is based on the loss for the period and the weighted number of ordinary shares in issue during the period, being 181,274,187 (2008: 130,210,589).

Diluted loss per share

The potential ordinary shares which arise as a result of the options in issue are not dilutive under the terms of IAS 33 because they would not increase the loss per share. Accordingly there is no difference between the basic and dilutive loss per share.

4. Share capital

The company made allotments of ordinary 1p shares with an aggregate nominal value of £8,500 during the year as follows:

5. Share options

6. Other reserves

The other reserves figure relates to warrants acquired on acquisition of Landore Resources Canada Inc. These were existing warrants acquired on a one for one basis and were exercised on 4 April 2008.

7. Profit and loss reserve

8. Cash generated from operations