Landore Resources Limited Regulatory News (LND)

3 Aug 2005 14:00

Landore Resources Limited03 August 2005 LANDORE RESOURCES LIMITED WEST GRAHAM PROPERTY OPTION AGREEMENTHighlights •Landore Resources Canada Inc. ("Landore"), a fully owned subsidiary of Landore Resources Limited, has entered into an option / joint venture agreement with First Nickel Inc. (TSX-FNI) for that company to acquire a 70% interest in Landore's West Graham property adjoining the east zone of the Lockerby nickel mine near Sudbury, Ontario. The West Graham property comprises one full patent Lot 12 in the township ofGraham for a total area of approximately 130 hectares owned outright (land andmining rights) and is strategically located on the southern edge of the SudburyIntrusive Complex, only 2 kilometres east of the Lockerby nickel mine and 10kilometres west of the Creighton mine. The agreement provides for First Nickel to make cash payments to Landore of$150,000 and carry out exploration and development expenditures of $6 millionover a four-year period. Should First Nickel fully exercise the option, Landoreshall decide whether it wishes to participate to the extent of its 30% workinginterest in the development of the property, failing which, First Nickel shallhave the right to increase its interest to 85% by completing a bankablefeasibility study within two years thereafter. The completion of the transactionis subject to the execution of a definitive agreement and regulatory approvals. Extract from First Nickel's press release 3rd August "The 130-hectare Landore property extends for approximately 1.3 kilometres intothe footwall south of the Lockerby East portion of First Nickel's Lockerby Mineproperty. Given the copper-depleted nature of the known contact-style ores andthe presence of extensive Sudbury Breccia in the footwall, there is significantpotential for high grade copper-PGE deposits in the footwall to the LockerbyEast ore system. The Landore property also contains the historic Conwest deposit. Thiscontact-related deposit was estimated in the 1960's to have a mineral inventoryof 4.3 million tons at 0.52% Ni and 0.33% Cu. This resource should be considerednon-compliant with National Instrument 43-101. The centre of the deposit lies atapproximately 250 metres vertical depth. Of particular interest to First Nickelare indicated areas of much higher grade within the Conwest deposit - forexample, 2.35% Ni, 0.35% Cu over 15.5 feet in hole WG-27 and 2.32% Ni, 0.77% Cuover 7.7 feet in hole WG-9, etc. Platinum-palladium-cobalt values are unknown.This deposit is approximately 500 metres above First Nickel's Lockerby Eastdeposit, along the same ore system, suggesting that there is considerablepotential to find additional contact-related mineralization along this trend. First Nickel plans to mount an aggressive exploration campaign on the Landoreproperty commencing immediately. This will include deep-penetration InducedPolarization surveys from surface, detailed mapping of the distribution ofSudbury Breccia on the property and a thorough review of past drilling on theConwest deposit to attempt to delineate areas of higher grade which may beaccessible by a ramp from surface. First Nickel is also currently laying outplans for a major underground drilling program at Lockerby East to increaseconfidence levels in the existing resource base and to explore for moreresources in the vicinity. In view of the Landore acquisition, a number of theseunderground holes will be continued south to explore for footwall deposits." For more information please contact Bill Humphries / Richard PrickettLandore Resources LimitedTel: 07734 681262Tel: 07775 651421 Simon RaggettStrand Partners LimitedTel: 020 7409 3494 This information is provided by RNS The company news service from the London Stock Exchange