Landore Resources Limited Regulatory News (LND)

19 Feb 2007 07:01

Landore Resources Limited19 February 2007 LANDORE RESOURCES LIMITED (AIM Ticker: LND.L) JUNIOR LAKE-NICKEL PROJECT RESOURCE STATEMENT-PROPOSED WORK PROGRAM 2007 VW Zone Nickel Inferred Resource: Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA), Toronto, wasretained by Landore Resources Canada Inc. ('Landore') to independently carry out aresource estimate for the VW zone located at Landore's Junior Lake project,Ontario, and to prepare a National Instrument 43-101 compliant technical report. VW Zone Inferred Resource at 0.2% Nickel Cut-Off Grade,Tonnes Ni% Cu% Nickel Tonnes Copper Tonnes4,202,776 0.34 0.05 14,300 2,100 Based on Scott Wilson RPA's review of metal prices, mill recoveries, genericsmelter recoveries and terms, preliminary transport costs and estimate ofpreliminary open pit mine operating costs likely to apply at the VW Zone site,the 0.2% Ni cut-off grade is reasonable for the statement of Inferred Resourcesat this time. Mineral resources were estimated by Scott Wilson RPA using assumed long termmetal US$ prices of $7.00/lb nickel (Ni), $1.50/lb copper (Cu), $875/oz platinum(Pt), $300/oz palladium (Pd) and $500/oz gold (Au).(The average spot prices for January 2007 were, nickel $17.00/lb and copper$2.50/lb.) Scoping Study: Landore is very encouraged with the above results, particularly as the Inferredresource has been delineated on just 300 metres (m) of strike length and to anaverage depth of approximately 250m. The VW Zone remains open along strike atboth ends and to depth where there is potential to develop additional resources.Landore is further encouraged with the successful in-fill and extension drillingcompleted late last year on the adjacent B4-7 Ni-Cu Zone Accordingly, Landore has engaged Scott Wilson RPA to undertake a scoping study(preliminary assessment) to determine potential economics for mining the VW andB4-7 Zones and to identify the target resource base that will support mining atthe Junior Lake project. Junior Lake: The Junior Lake properties are located in the province of Ontario, approximately235 kilometres north-northeast of Thunder Bay and are situated within theCaribou-O-Sullivan Greenstone Belt in the Wabigoon Subprovince. During this past summer a diamond drilling campaign significantly advanced boththe VW Zone nickel deposit and the adjacent B4-7 nickel-copper deposit towardspossible mining development. The VW Zone Ni Resource, discovered only in November 2005, is located at thesoutheastern end of the Junior Lake property. The Zone has been drilled with 45diamond NQ drill holes for a total of 11,366m at a general grid spacing of 50m x50m over 300m of strike length x 200m wide and to an average depth ofapproximately 250m. The VW Zone contains 5 sub-zones, the widest and most continuous being'Katrina', which lies along the southern contact with the ultramafic sequence.The western section of three holes drilled on the VW Zone have some of the bestintersections on 'Katrina' returning a number of +1% Ni grades.'Katrina' remains open to the east and west and at depth. Scott Wilson RPA has recommended that additional exploration drilling to expandthe resources to depth, particularly on the northern side of the VW depositwhere the sub-zones are tested to shallower depths compared to the southerlysub-zones, and on the west side, following which the VW Zone modeling andresource estimate should be updated. Contingent on results from the above drilling and the outcome of the ScopingStudy, Scott Wilson RPA has recommended to carry out in-fill drilling wherenecessary to bring the spacing in the VW Zone to 25m x 25m in order to upgraderesources to Indicated Resources. The B4-7 Ni-Cu Deposit, lies 3 kilometres west of the VW zone and has beendelineated by 63 diamond drill holes, drilled over a period from 1969 to 2006,for a total of 14,388m over 520m of strike length and to an average depth ofapproximately 250m. An independent estimate of exploration potential was prepared for the B4-7 zoneby Scott Wilson RPA in March 2006. 3D computer block modeling and cut-off gradeof 0.25% nickel equivalent were used for the estimate. B4-7 Deposit Estimate of potential Tonnage and Grade:Tonnes Ni% Cu% Coppm Au ppb Pt ppb Pd ppb Nickel CopperMillions Tonnes Tonnes1.5 0.6 0.40 606 40 90 460 9,000 6,000To2.0 0.7 0.48 670 50 95 525 14,000 9,600 Scott Wilson RPA reviewed metal prices, mill recoveries, generic smelterrecoveries and terms, preliminary transport costs and estimate of preliminaryopen pit mine operating costs likely to apply at the B4-7 Zone site to determinethe nickel equivalent cut-off grade.The estimate of the exploration potential in March 2006, assumed long term metalUS$ prices of $3.50/lb nickel (Ni), $1.10/lb copper (Cu), $750/oz platinum (Pt),$275/oz palladium (Pd) and $400/oz gold (Au). The potential quantity and grade of the B4-7 Zone is conceptual in nature andthere has been insufficient exploration, primarily metallurgical work, to permitdefining a mineral resource. It is uncertain if further exploration work willresult in the B4-7 Zone being delineated as a mineral resource.' Scott Wilson RPA recommended at the time that additional drilling be carried outto in-fill gaps in the zone and to provide material for modern metallurgicalwork to improve nickel recovery.A 7 hole diamond drill program was completed late last year on the B4-7 depositwhich successfully in-filled several of the gaps and extended the deposit to thewest.A composite of ore has been submitted for preliminary metallurgical testing forthe recovery of Ni.-Cu.-PGE minerals. Results are pending. Proposed Works Program 2007. A 15,000m NQ diamond drill campaign is scheduled to commence in mid-March on theVW and B4-7 deposits, of which: 9,000m is allocated for extension and partialin-fill on the VW deposit; 3,000m for in-fill on the B4-7 deposit; 2,000m formetallurgical testing on both deposits and 1,000m for geotechnical work on theVW deposit for open-pit design requirements. Additional metallurgical flotation testing is scheduled for the VW and the B4-7deposits to optimize recovery and concentrate grades. Golder Associates have been retained by Landore to carry out Base Line Aquaticstudies on the lakes and drainage tributaries in the vicinity of the Junior Lakeprojects. These studies will commence in late February. Commenting on the report, Chairman of Landore Resources, Bill Humphries, said: "The general consensus within the mining and metals industries is that the priceof nickel will remain strong and fundamental supply restraints should limitdownward pressure on nickel prices. It is Landore's aim to take full advantageof the favourable conditions by advancing the Junior Lake Nickel Project toproduction as rapidly as possible. Mr. Richard Routledge, M.Sc., P. Geo., Consultant Geologist with Scott WilsonRoscoe Postle Associates Inc. and the author of the report entitled " TechnicalReport on the Resource Estimate for the VW Zone, Junior Lake Project, NorthernOntario Canada" prepared for Landore Resources Canada Inc., dated January 22,2007, is the Qualified Person in accordance with the requirements of theCanadian National Instrument 43-101. James Garber, (BSc. Hons. Geology, member of APGO) a Director of LandoreResources Ltd and a qualified person as defined in the Canadian NationalInstrument 43-101, has reviewed and verified all scientific or technical miningdisclosure contained in this announcement, which is stated in accordance withthe Canadian Institute of Mining Metallurgy and Petroleum. - ENDS - For more information please contact: Bill Humphries, Chairman Tel: 07734 681262Richard Prickett, Chief Executive Tel: 07775 651421Landore Resources Limited www.landore.com Simon Raggett Tel: 020 7409 3494Strand Partners Limited David Bick Tel: 07831 381201Holborn Public Relations Limited This information is provided by RNS The company news service from the London Stock Exchange